TCI News
TCI: Mad math may point to need for some subtraction and, God forbid, no real surplus!
#Providenciales, March 8, 2019 – Turks and Caicos – EDITORIAL – The math being used to encourage on time payment of taxes to the Turks and Caicos Islands Government for those companies which fall under the Hotel Restaurant Tourism Taxation (HRTT) ordinance seems to be madness.
With some HRTT Ordinance companies and what they owe to TCIG now exposed to the public in an effort to ‘set the record straight’ about the Amnesty Bill passed in the House of Assembly on Monday, Premier and Finance Minister, Sharlene Robinson laid bare the who and the what… and from our vantage point, the figures force you to ask, “what the heck?!”
Sure, the titan in this messy money matter is undeniably Beaches Turks and Caicos; but let’s view the whole picture of this debacle which in every case demonstrates that the compounded interest and penalties, for all 41 of these companies is a ‘killer’.
The littlest of the lot actually owes TCIG $760.00, but the penalty to the company takes the boosted bill to more than double. So, this business owner is likely happy now, because they can go in and pay off that $760 and they’ve got 30 days to do it.
It gets more bizarre though, when a few villas are showing that they owe government under $10,000; at least two of them have accumulated $6,000 in taxes but due to the penalties, their meager bill has turned into a heavy load. For one company which has $9,000 in unpaid taxes, their penalties alone are $42,000 over a six-year period.
The ledger shows that TCIG is actually owed about $29.7 million in taxes, but the penalties are nearly three times the taxes due; at a whopping $89.1 million.
Fifteen companies have paid their taxes, leaving the penalty amount with TCIG and therefore on the books. Left by those 15 companies: $842,164 in unpaid penalties.
Due to the Amnesty, that sum will be wiped clean from the records and the 15 companies are now back at zero balance.
As stated in the House of Assembly on Monday night, seven companies are referred to the Attorney General for prosecution regarding their arrears with TCIG.
In one case, the business owes just over $66,000 but their penalties take their overall bill with TCIG to $334,000; five times their taxes.
Imagine a stand-alone restaurant in the tourist district of Grace Bay having to fork over (pardon the pun) $1.4 million when their taxes are a mere fraction of that, at $345,000. Their accumulated penalty is a staggering $1.1 million. Or another restaurant on the Grace Bay strip, which would have had to pay government $280,000 with their taxes and penalties combined; now the amnesty reduces that bill with TCIG to $80,000.
It appears that strict penalty system has backfired and ended up being a deterrent to payment for some businesses and detrimental to the fiscal health of the country.
Perhaps, in all of this talk about who owes what, there needs to be a revamp of that system so that it rewards early payment, instead of grossly penalizing late payment.
The Amnesty is designed to wipe $89.1 million in penalty fees off the books and off the records of these 41 companies and TCIG.
It surely leaves Magnetic Media wondering whether reports of super surpluses for TCI, were betting on these astronomical penalties eventually being paid.
#magneticmedianews
#amnestyfor41companies
TCIG knew from April that fuel factor could surge almost 80%; Minister says $500 cost-of-living payment was part of Government’s response
PROVIDENCIALES — The Turks and Caicos Government knew months before July’s shocking electricity bills that consumers faced a potentially massive increase in the fuel factor.
Minister of Information Technology and Energy E. Jay Saunders revealed Friday that Pelican Energy warned his Ministry in April that generation fuel costs were projected to rise from $3.09 per gallon in May to $4.79 in June and July.
That translated into a projected fuel factor jump from about 17.5 cents to 31 cents per kilowatt-hour — an increase of almost 80%.
Saunders said he personally advised Cabinet of the projected increase and presented options for cushioning the impact.
He characterised Government’s $500 cost-of-living payment as its “initial response” to rising fuel costs, before a separate fuel-factor subsidy was approved.
Cabinet records show Government agreed on June 24 to provide funding to mitigate the fuel-factor impact, with the relief programme approved July 8.
Eligible residential customers — those averaging less than $1,500 monthly over the previous three bills — are capped at 22 cents per kWh from July through October.
Pelican confirmed Friday that Government’s contribution was already applied to July bills, meaning the bills now triggering widespread public outrage would have been even higher without the subsidy.
Saunders did not disclose the programme’s total cost.
His admission that Government knew since April, however, raises another question amid the backlash: why were consumers not directly warned by Government about the scale of the approaching increase?
PROVIDENCIALES — New commercial Crown Land applications are facing a six-month pause as the Turks and Caicos Islands Government takes inventory of its holdings.
During Cabinet meetings held July 15 and 16, an immediate six-month moratorium was approved on the acceptance, processing
and approval of new applications for commercial Crown Land grants, leases and allocations.
The pause will remain in place pending completion of the Crown Land Inventory Review. Cabinet’s summary did not state what prompted the review or indicate whether availability of commercial Crown Land is a concern.
The two-day meeting also advanced major consumer legislation. Cabinet approved the National Fair Competition Policy 2026 and drafting instructions for a Fair Competition Ordinance, moving TCI toward stronger consumer protection and fair competition rules.
In Grand Turk, Cabinet approved rezoning land in the North West Suburbs from low-density to medium-density residential use to facilitate a new apartment development.
Cabinet also advanced fisheries reforms, water legislation allowing private and public-private investment, minerals legislation and appointments across tourism, health and finance.
Progress toward establishing a TCI Credit Union was also noted.
PROVIDENCIALES — Major development projects outside Providenciales received Cabinet attention on July 8, with Government approving agreements connected to the redevelopment of Dellis Cay and a resort development in North Caicos.
Cabinet approved a Development Agreement between the Turks and Caicos Islands Government, Desarrollos Hotelco DC Ltd. and
Desarrollos Hotelco Astoria Ltd. for the redevelopment of Dellis Cay.
The long-discussed private island development sits between Providenciales and North Caicos and its return to Cabinet signals another step toward redevelopment.
Cabinet also approved amendments to an agreement involving SPR LND Ltd. (Royal Reef) and TCIG Development Agreement for a resort/hotel development in North Caicos.
Other decisions included approval of the First Supplementary Appropriation Bill 2026 for onward transmission and the appointment of Cindy Ewing as Chair of the Invest TCI Board, effective August 1 for three years.
Cabinet also noted consultation outcomes concerning changes to business licensing, approved professional membership expenses for qualifying Telecommunications Commission staff and approved advice relating to the Interim Clinical and Estates Services PPP.
The July 8 meeting was chaired by Acting Governor Anya Williams.
Photo Credit: Royal Reef (Keith)
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