#TurksandCaicos, April 4, 2022 – You should not expect for the names of the companies which will benefit from a debt forgiveness program by the PNP Administration to be published, instead E. Jay Saunders, Minister of Finance has discloses that penalties linked to precisely 4,334 business license fee renewals have been wiped clean.
It is a measure which passed, strongly supported, through the House of Assembly on March 28, 2022 and forgives $1.4 Million in penalty charges by the Ministry of Finance, Investment and Trade.
“As of now, the penalties are wiped clean, actually they’re nailed to the cross,” said Saunders, Deputy Premier who also addressed queries about whether the list of beneficiaries would be published.
A similar tax forgiveness for those in arrears on the hotel and tourism taxes in 2019 led to a publication of the 19 companies in receipt; the Deputy Premier said this program will be managed differently.
“Every company with an outstanding balance is benefitting, and unlike a few hotels on the HRTT (Hotel & Restaurant Tourism Tax) list, there are literally hundreds of companies on the business license list, which covers four years. The list can be available to review, but it won’t be practical to do (publish) that.
The business license list is an offer of magnitude larger than the HRTT list, so it’s not as simple as saying the HRTT list was published so the other should be published also,” said the Deputy Premier in response to our queries.
When he addressed Parliament on the Business Licensing Fees and Penalties Amnesty Bill, 2022 he said, “As a bit of a background Mr. Speaker, speaking specifically to the area of business licenses, Total Arrears as at February 2022 for all Business licenses was $2,932,036.04. Included in this figure are the penalties of $1,395,658.19, and this Bill today seeks to write that off. The Total Penalties cover the four years 2018 to 2021,” said Saunders on March 28.
This measure, now instituted through the Business Licensing Department, was anticipated as the Government made an announcement prior to the Christmas holidays that a plan was being devised to help businesses hop the hurdle of mounting arrears at the Department. Some were uncertain whether the promise would materialize, but now it is here and not only did it make penalties go away for the pandemic years, it went back to 2018 and 2019, where penalties amounted to $42,240.00 and $222,816.00 respectively.
“I included 2018 and 2019 because outstanding fees went back that far, and our Government wants to give businesses the best chance at being successful, so we wrote off all penalties. Not some of the penalties, but all of them.”
In all, 4,334 accounts were impacted, though not necessarily that many companies as there are “many” businesses which appear in multiple years as not having paid license fees and the ensuing penalties.
In 2018, there were 96 companies which were unable to cover license fees and penalties. Grand Turk had 10; Providenciales 81; South Caicos and Middle Caicos had two each; in Salt Cay there was one and for North Caicos there was no company listed as not having paid their business license.
In 2019, that number rocketed to 574 business which did not pay their business licenses. Grand Turk had 68; Providenciales with 471; South Caicos had 11; Middle Caicos had seven; North Caicos registered 14 unpaid and three Salt Cay businesses made the non-payment list.
By the pandemic year, the list of companies which did not pay their business licenses grew nearly three-fold to 1,500 companies. Grand Turk now had 206; Providenciales had 1,201; South Caicos registered 20 unpaid; North Caicos had 48; Middle Caicos had 15 and Salt Cay grew to 10.
Last year, saw the mushrooming trend continue and 2,164 companies fell short of paying their business licenses to the Department. In the breakdown from Deputy Premier Saunders: Grand Turk, 286; Providenciales 1,748; South Caicos, 24; North Caicos was now at 73; Middle Caicos was 18 and Salt Cay had 15 businesses unable to pay licenses and resultant penalty fees.
Business license costs will still have to be paid to the Business Licensing Department reiterated the minister, in some cases, a payment plan may be set up to support clearing the debt for the license to operate.
“Mr. Speaker, to qualify for the Business License Penalties Write-Off, businesses will have to bring current their license fees within three months; but Mr. Speaker, if there are businesses that are unable to do so, this caring Government of the people, will allow them the flexibility to pay up their outstanding license fee over time through payment plans with TCIG.
So with that Mr. Speaker, we nail approximately 1.4M in business license fee penalties to the cross on behalf of the TCI businesses.”