NASSAU, BAHAMAS — The Department of Inland Revenue's top official yesterday noted that just under there are just over $190 million in Value-Added Tax (VAT) arrears "on the books", although she acknowledged the sum is likely significantly higher due to the number of business charging the tax without remitting the revenue to government.

"That's only for those businesses that filed," Shunda Strachan, the DIR's acting controller, revealed yesterday. "The concern is the unknown; those businesses that are operating, charging VAT but not filing or declaring... it's $193 million on the books but it's a lot more outstanding."

Strachan stressed that businesses that are collecting VAT and not remitting it to the government are committing theft. 

"If you are collecting VAT and not paying it to the government, it amounts to stealing. We are taking a hard line on businesses not remitting the VAT," said Strachan. 

Strachan also noted that there are many businesses with a gross annual turnover of more than $1 million which fail to keep proper records.

"You would be surprised at how many businesses with turnovers of more than $1 million that have no records. The law mandates that if you're in business you're obligated to keep records and the fine for not keeping record is great."

Strachan noted that the DIR has recently had to deal with courier companies for not remitting VAT to the government. According to Strachan, the DIR initiated an exercise where it stopped the processing of imported goods until courier companies settled their VAT accounts. This resulted in some companies reportedly going on payment plans.

"We had about 10 courier companies that we asked to hold on until they pay us our funds. We held their shipment just to remind them that to collect you have to pay. All of those courier companies with the exception of one were able to come forward, make arrangements and substantial payments and their business resumed. I wouldn't say there is a great challenge industry anymore but we are monitoring it very closely. We will continue to monitor the business that are importing and we are doing so in conjunction with the Customs Department," said Strachan.

There are reportedly 76 courier companies in the country with store fronts and 176 home-based courier businesses.

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