Bahamas Bar Association (BBA) President Elsworth Johnson yesterday stated that he will not "stand by and let BBA members be abused" by the government amid prolonged uncertainties regarding the effect of the value-added tax (VAT) on legal services.
Johnson told Guardian Business that he is "very disappointed" by the VAT Unit's response to the BBA's concerns, but hopes to work with the Ministry of Finance on ironing out the remaining kinks in the legislation in the near future.
"The past interactions with the VAT commission have left a lot to be desired. I appreciate the difficulties that the government may be experiencing with the implementation of VAT, but I think that a greater effort must be placed on addressing concerns.
"Yes, there may be some difficulties, but this is not the right way to do it. We're going to be taxed in less than a month and the authority isn't sure about some of the workings of the legislation. It doesn't give members of the public confidence in the process," he said.
Despite various workshops conducted between the two organizations, Johnson said the VAT Unit has failed to address all of the organization's concerns and would not be in a position to resume training sessions until 2015. Bar members would thereby charge VAT on legal services while the legislation is still being tweaked.
Johnson additionally had broader concerns regarding the tax and the lack of adequate consumer protection amid reports that some retailers had already begun applying VAT ahead of the January 1 start date. As a result, he feared that poor Bahamians would disproportionately suffer from the tax.
Members of the BBA have repeatedly expressed concern over elements of the VAT reporting process that may infringe upon client confidentiality, while attorney and Marco City MP Greg Moss accused the government of using the tax on professional services as a means of "subsidizing" its revenue stream.
While Johnson noted that some BBA members had already decided to take their issues before the courts, he stressed that the BBA did not want to move to litigation against the government at this time.
Professional service providers, including attorneys, accountants and doctors, with annual turnover exceeding $100,000, were required to register for the tax by November 30. Late registrants are encouraged to register as quickly as possible to avoid further penalties.

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