PAYE audits on employers have increased

Since the removal of the requirement for individuals with emolument income to file tax returns, the Board of Inland Revenue has increased the number of PAYE audits on employers, Minister in the Ministry of Finance, Conrad Enill disclosed last Thursday. He was winding up the debate on the Finance Bill in the Senate. Enill also revealed that Government planned to introduce legislation which would allow Government departments and statutory Boards to have their own procurement units, and not have to refer to the Central Tenders Board. Enill stated that this legislation would also establish an independent regulatory authority which would be responsible for the formulation of procurement policy, guidelines, procedures and processes to ensure that the underlying principles of transparency, accountability and value for money are upheld in the procurement process by Government departments and agencies. “It is intended that this new independent regulatory authority will audit governmental agencies and examine the procurement functions to ensure that there is value for money,” the Minister stated.

He stated that in the meantime “and before more comprehensive legislative changes are made,” the amendments in the Finance Act would speed up the procurement process while at the same time empowering the Central Tenders Board to focus on value for money rather than the lowest bid made. Enill also stated that the Board of Inland Revenue and Customs and Excise Department needed to be run efficiently and effectively in order to preserve the integrity of the State’s revenues. He said efforts were underway to create a revenue authority which would oversee the operations of the BIR and the Customs and Excise Department in order to minimise leakages in the system and to ensure that there is compliance with the taxation laws, particularly in the area of collections.

Noting that Government needed to create an environment conducive to trade and investment while fulfilling its social responsibility to those who needed protection, Enill said that the amendments to the tax laws were aimed at increasing administrative efficiency and simplifying the taxation system. He said Government’s tax proposals considered the special needs of the more vulnerable taxpayers in the society, particularly retirees. The Finance Bill would also exempt from the payment of stamp duty all letters or powers of attorney, including proxy forms and agreements, Enill said, noting that there was great public inconvenience in the stamping of these documents.