Munroe: Temporary closure of web shops would be harmful

Sat, Jun 28th 2014, 11:26 AM

Attorney Wayne Munroe, who represents a group of web shop owners, said he does not see the logic in closing down web shops for a period of time before they are regularized as it would hurt web shop employees.
"It doesn't make sense from a point of view that, when you close, you terminate people and you have to pay them all their severance packages," said Munroe when contacted for comment.
"Then if you have leases with landlords, what's the position with that? I'm made to understand that the position of the government is that although that may have been floated, it's not being recommended by the gaming consultants."
Tourism Minister Obie Wilchcombe said on Monday the government is determining a period of closure for web shops.
Wilchcombe recommended that web shops be made to close before the regularization period begins. However, he said he has faced some opposition to that.
"The web shop consultants are suggesting that it's not necessary," he said. "We're weighing it right now."
The revised Gaming Bill is expected to soon be tabled in Parliament.
Prime Minister Perry Christie has said that web shop regularization will be retroactive to July 1, though he did not state at what rate they will be taxed.
Munroe represents Island Game, Island Luck, FML Group of Companies, Asue Draw, Whatfall and Chances
He said his clients accept that the regularization process will be "painful".
"My clients accept that the process is going to be painful from the sense that nobody likes to pay money and that the government is looking to come after them with a big stick," he said.
"We'd like to think it's a principled big stick and to demand substantial sums back for the maximum period that the law permits would be a big stick.
"But the closure would make no sense. It would cause pain to employees; it would cause pain to landlords."
Munroe estimated that if web shops were made to close, around 5,000 to 6,000 employees would be impacted.
Attorney General Allyson Maynard-Gibson has also said the government intends to impose a penalty on web shops for revenue generated prior to regularization.
Munroe said while his clients would be upset "because they paid taxes in other jurisdictions" their businesses are regulated in, they are trying to be sensible in the consultative process and do not see such an imposition as a penalty.
"No one is happy to pay taxes," he said.
"People have to understand that the government is being hard in positions it takes with us in this consultative process, but I'd like to think that they are trying to be fair and my clients are trying to be fair and sensible.
"If you look at that proposition that makes sense and could be as a matter of principle, something you could defend."

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