NASSAU, Bahamas — Sir Franklyn Wilson yesterday voiced fears about renewed “tardiness” relating to VAT refunds, warning that the issue “could shake” still-fragile business and investor confidence, The Tribune reported January 29.
The Arawak Homes and Sunshine Insurance chairman, emphasising that he was talking about the broader economy, told Tribune Business he had attended two board meetings in the past two working days where the company’s chief executive was complaining about its inability to receive timely VAT refunds from the government.
Pointing to the significant negative effects on a company’s cash flow if large sums were tied-up in VAT, Sir Franklyn said it was vital that the Minnis administration reassure businesses they will receive what is due to them in the timeframe expected.
“I’m beginning to get concerned over the frequency with which I hear business people complaining about the tardiness of the government in refunding VAT payments,” Sir Franklyn told this newspaper.
“By coincidence, in the last two business days I attended two board meetings and, in both instances, the chief executive was making the point that the company’s cash flow was being adversely affected by the inability to get VAT refund payments on a timely basis. It’s my hope that the appropriate authorities might do or say something to help give the private sector confidence that they can rely on the refunds being made in a timely manner.”
His comments came as the Bahamian insurance industry seeks to avoid its own specific legal collision with the government over both VAT refunds and the tax treatment applied to the industry by the Department of Inland Revenue (DIR). http://www.tribune242.com/news/2019/jan/29/sir-franklyns-fear-vat-refund-tardiness/
