T&T Chamber Calls for BIR Registry Cleanup | Local Business

The Trinidad and Tobago Chamber of Commerce and Industry has asked the National Treasury Board (BIR) to clean up its records to prevent the issuance of notices that extend beyond the period for which taxpayers are legally required to retain records.

“We note that in some cases, the BIR has issued tax arrears notices for a period exceeding a decade. Furthermore, the National Insurance Board (NIB) conducts audits for periods exceeding 15 years. This seems highly unreasonable considering that tax laws generally provide for a six-year retention period for books and records in T&T. We would therefore request that this process be reconsidered and BIR records be cleaned up to avoid the issuance of these dated notices,” the T&T Chamber said.

This call was made in a recently published document by the Trinidad and Tobago Chamber entitled “Budget Recommendations 2024-2025”.

This year, two prominent businessmen, Tony Chow Lin On and his company Trinidad and Tobago Radio Network (TTRN) and Derek Chin and his company MovieTowne, have owed millions of dollars in unpaid taxes to the BIR.

Earlier, as tax arrears rose, the Trinidad and Tobago Chamber of Commerce and Industry issued a communiqué saying it expects the business community to act in accordance with the law, including paying taxes on time.

The Trinidad and Tobago Chamber in its budget document also praised the government’s efforts to improve the efficiency of the BIR and the Customs and Excise Department through the proposed establishment of the Trinidad and Tobago Revenue Authority (TTRA).

“Other countries in the Caribbean, namely Jamaica, Barbados and Guyana, have introduced tax authorities, so it is not surprising that Trinidad and Tobago is seeking to implement the TTRA,” it said.

Development plan,

resilience, equality

The Trinidad and Tobago Chamber also recommended the deduction of value added tax.

“Section 92(2) of the ITA and Section 35(2) of the T&T VAT Act grant the BIR the authority to offset tax refunds due to taxpayers against outstanding tax liabilities. While the BIR has used such provisions to unilaterally apply refunds due to taxpayers against outstanding tax liabilities, the practice of granting deductions upon request by taxpayers has not been frequently used, based on our experience,” he stated.

“It should be noted that other regional territories such as Saint Lucia and Guyana allow automatic offsets of refunds against outstanding tax liabilities, while other territories such as Barbados allow such offsets upon written request to the Barbados Revenue Authority. This approach of offsetting refunds due against calculated tax liabilities (provided such liabilities are not disputed) may assist in reducing the amount of VAT refunds due to taxpayers from the T&T government and would ease the cash flow burden felt by businesses to which such refunds are due. This would encourage further business expansion and increased investment as cash flow would be directly invested in business generating activities rather than in VAT and TAX refunds,” he stated.

The country’s fiscal year ends on September 30. The state budget will be read soon, although the date of its presentation has not yet been officially announced.

Trinidad and Tobago Chamber of Commerce President Kiran Maharaj said the organisation recognises that the government’s budget must be a model of growth, resilience and equity.

She said the key recommendations are ones that the chamber believes “will move our country forward by making it easier to do business, increasing productivity, improving our digital infrastructure, expanding our export opportunities and more.”

“Our first priority must be to streamline and simplify the processes that businesses face. By reducing bureaucracy and eliminating red tape, we can significantly reduce the time and cost of starting and running a business. This will not only encourage entrepreneurship but also attract foreign investment, fueling economic growth,” Maharaj said.

Maharaj said that the driving force of economic growth is productivity.

“To increase productivity across all sectors, targeted investments in skills training and workforce development must be considered. We are in the midst of an AI revolution and we need to support the implementation of advanced technologies in both the private and public sectors, ensuring that our workforce is equipped to succeed in a rapidly changing global economy,” she said.

According to Maharaj, in today’s digital age, a solid infrastructure is essential to staying competitive.

“Digital expansion will facilitate e-commerce, enable remote work and connect our citizens to global opportunities. In addition, we must invest in cybersecurity measures to protect our digital assets and ensure the integrity of our online platforms. Our country’s prosperity is linked to our ability to compete on the global stage. We commend our government for developing the Trinidad and Tobago Trade and Investment Promotion Agency and the Special Economic Zone, which seek to increase our export potential and can increase our foreign exchange earnings and strengthen our economic resilience,” she said.

Maharaj stated that sustainability is no longer an option but a necessity.

“We propose developing a bold strategy for renewable energy projects, including solar, wind and hydroelectric power. This includes developing public-private partnerships to accelerate the transition to a green economy.

“In addition, we need to provide incentives for businesses and households to adopt renewable energy solutions, reducing our carbon footprint and reducing our dependence on fossil fuels. As we move away from our dependence on oil and gas, we also need to explore opportunities in the services and creative sectors where we can leverage the potential of the orange economy,” she said.

Maharaj said innovation is key to opening new opportunities and ensuring long-term economic diversification.

“We need to encourage research and development, especially in emerging sectors such as technology, agriculture and renewable energy. We also need to provide targeted support to micro, small and medium-sized enterprises through access to capital, mentoring programmes and incubation centres. By nurturing these enterprises, we can create a dynamic and diverse economy that is resilient to external shocks,” she said.

She added that economic growth is essential, but it must be both inclusive and equitable.

“Access to quality healthcare, education and social services is always a consideration and we expect the government to take these aspects into account. A nation’s success is measured not only by its wealth but also by the well-being of its citizens,” she said.

She said the recommendations in the 55-page House document were not just about numbers and the impact on the economy, but also about people, communities and the future to be built together.

“By focusing on ease of doing business, productivity, digital infrastructure, exports, renewable energy, innovation and social equality, we can pave the way for a brighter, more prosperous future for all,” she said.

Tax deduction for

TTPS Donation of $1 Million

The House Budget Committee is chaired by Charles Pashley and Colin Ramsey, and includes Bryan Ramsumair, Jean Paul de Meillac, Susan Morgan, and Lorraine Waldropt.

Among the recommendations by the Trinidad and Tobago Chamber of Commerce was a reiteration of last year’s suggestion to introduce a 100% tax relief for individuals and companies that donate up to $1 million to the Trinidad and Tobago Police Service (TTPS), to provide alternative funding to combat crime.

The Chamber also recommends a similar tax relief for entities and individuals supporting the Crime Stoppers campaign.

The recommendations focused on 11 areas, including the construction sector, the energy sector and Tobago.

SOME RECOMMENDATIONS:

CONSTRUCTION:

1. Abolish property tax on all industrial machinery and equipment.

2. Reduce the rates of the civil law transaction tax on the transfer/sale of residential and commercial property. For residential land, remove the civil law transaction tax altogether or alternatively reconsider the thresholds, which are quite outdated. Reconsider the civil law transaction tax on financial instruments – replace it with a flat fee.

GO GREEN:

1. Expanding incentives to invest in solar panels for individuals and businesses.

2. Introduce regulations to encourage investment in electric vehicle charging ports.

3. Update regulations to allow the buyback of energy from suppliers that have developed green energy sources — for example, solar panels — allowing surplus energy to be sold back to the grid.

4. Extension of VAT and customs duty relief to hybrid vehicles.

TOBAGO:

1. Transfer reporting lines for Tobago land ownership licences to the Speaker of the Tobago House of Assembly (THA).

2. Establishment of a service point for travellers in transit to Tobago, intended mainly for foreign travellers.

AGRICULTURE:

1. Clearly define the process for obtaining tax exemptions.

2. Address land use issues.

3. Address the problem of property theft.

DIGITALISATION AND TECHNOLOGY:

1. Cybersecurity Investment Tax Credit: Change the law to clarify that the credit should be limited to $500,000 per income year. Also consider extending it beyond 2025.

2. Amendment of the Seventh Schedule to the Income Tax Act to include computer software.