Harbour Island is among multiple Family Island destinations set to be targeted by the Department of Inland Revenue’s crackdown on undeclared short-term vacation rentals, it was revealed yesterday.

Shunda Strachan, the tax authority’s acting controller, said action will soon be taken against foreign-owned vacation rentals in the Family Islands that have failed to register with it and pay due VAT on their income.

Speaking at the Office of the Prime Minister’s weekly media briefing, Ms Strachan said the Department of Inland Revenue is targeted foreign-owned vacation rentals that are being advertised via the Internet and social media outside The Bahamas without any monies touching this nation.

“We do have a concern that you probably see in the press soon on short0term vacation properties, because that’s really a little issue for us. Properties being rented in the islands, but not being advertised or promoted by Bahamians, but by foreign realtors,” she added.

“So that’s a concern, especially on like a Harbour Island, that type of thing. So stay tuned, because you’re going to see some something in in that area. Those property owners are not paying VAT and they’re all foreign-owned.”

Ms Strachan said the Department of Inland Revenue is also making progress with exercising its ‘power of sale’ to seize, then auction off, properties whose owners are delinquent in paying real property taxes. More than 20 sales are in progress or completed, while several owners have made payments on outstanding real property taxes to avoid enforcement action.

“We’ve had six publications with more than 20 sales that are either in process or completed sales. It’s not something that we’re excited to do. We have to do it because we have to get the taxes. But it is taking a while because we do still try and see what we can do for serious property owners that really intend to pay their taxes,” said Ms Strachan.

“We’ve made quite a bit relative to persons coming and paying, or entering payment arrangements, from the sales. We’ve made a couple of million dollars, not as much as we had anticipated at this point, but again, it’s because we are very cautious with the process. Because once you sell it, it’s gone. And so we will be publishing another list, probably in another two weeks.”

Ms Strachan said real property tax arrears are “still high, but it’s been going down” and many Bahamian homeowners are now coming in to pay on their past due bills. “It’s still high, but it’s been going down. And I’m proud of my Bahamian people, because they are taking real property tax really seriously now,” she added.

“We’re seeing the shift, and I can only commend the people, because I know it’s a difficult thing if you hadn’t been paying all along to commit to paying it. I’m proud of those persons that come in and they make payment arrangements.” Bahamian-owned owner-occupied properties are exempt from being seized and auctioned off over delinquent real property taxes.