‘Light at the end of the tunnel’

Imbert presented the Mid- Year Review in the House of Representatives last Wednesday .

The House subsequently approved the Finance Bill 2017 last Thursday. Imbert opened debate on the bill in the Senate yesterday. In its analysis of the Mid-Year Review, KPMG agreed with Imbert that weakness in tax administration at the Board of Inland Revenue (BIR) and Customs and Excise continues to be a problem in TT .

To this end, KPMG supported Imbert’s intention to bring legislation to Parliament before the end of this fiscal year to establish a Revenue Authority. “This much welcomed measure would be supported by a major employment programme consisting of graduates to assist with VAT and other tax collections,” the firm said. In reviewing the contents of the Mid-Year Review, KPMG said it was hopeful that, “the worst is over and some light has begun to emerge at the end of the tunnel.” KPMG welcomed Imbert’s attempt to shed some light on and increase the level of transparency, regarding the country’s current economic conditions. In noting that the deadline for the implementation of property tax will take place from May 22, KPMG said there are some industrial and commercial property owners who believe the tax applies to them. In this regard, KPMG said Imbert should advise the business community as to whether the May 22 deadline applies to them. Noting the recent passage of FATCA legislation, KPMG said Imbert gave the assurance that the requisite systems are being put in place to assist the BIR in complying with the requirements of the legislation. KPMG encouraged Government to press ahead with its plans to regulate the gambling industry as it can earn the country as much as $10 billion annually. On Imbert’s updates regarding the sale of assets, KPMG said Government should seek and participate in more sustainable and consistent means of raising revenue .

KPMG said reform of the country’s oil and gas fiscal regime is long overdue. The firm noted that in Imbert’s presentation, there were little or no statements made about the number of people, “retrenched during the downturn.” KPMG also said there was little or no mention of initiatives regarding further diversification of the economy, as well as fiscal measures to generate new sources of revenue .

The firm added, “We noted that no update/mention was provided on the much touted transfer pricing legislation.”