Establishment of the T&T Revenue Authority (TTRA) to replace the Board of Inland Revenue (BIR) is entirely dependent on whether the current PNM administration has done any groundwork over the course of the last year it has been in office.
So says Andre Henry, former chairman of the T&T Revenue Authority Management Company Ltd, the company set up under the Manning-led PNM administration charged with operationalising the proposed entity.
Responding to questions via email, Henry said setting up the TTRA over the next 12 months is, to a large extent, dependent on several variables.
"Firstly, has preparatory work re-started since the change of government last year? Secondly, is the format the same as proposed back in 2009-2010? This will have implications for the legislative requirements to establish the RA."
Henry added that serious consideration had to be given to staffing requirements and roles at the proposed authority.
"What arrangements are proposed for staffing? Under the previous PNM administration, the proposal was to terminate all the existing staff and employ new staff, with the old staff applying for positions in the new organisation."
Questioned as to whether he had been approached by the current administration to provide any counsel or advice, or to act in any capacity within a proposed revenue authority, Henry said: "My views have not been sought."
Asked about whether he felt a new Revenue Authority would be able to treat with the current issues of tax administration and collection any different from the current BIR, Henry said a few minor adjustments could have major results.
"There are some fairly standard disciplines and work processes that if implemented could see a significant increase in both coverage and compliance," he said.
The Business Guardian reached out to members of the business community to get their feedback on the current corporation tax regime and whether they anticipated any changes to it.
Andrew Sabga, deputy chairman of the ANSA McAL Group said he believed the Government would hold firm on any changes to the current corporation tax regime.
"I do not envision the Government making any changes to the current corporation tax regime. To increase corporation taxes at this time would be counterproductive to stimulating investments in the local economy which are need to keep the wheels of business turning," he said.
Sabga said he did believe, however, that the Government would continue with various other austerity measures.
"Certainly, given its reduction in fiscal revenue, it is not in a position to spend as it could have before and this may very well translate into reductions in transfers and subsidies and small budgets at different ministries."
Joseph Rahael, managing director of Amera Caribbean Development Ltd, one of the largest property development companies in the country, echoed sentiments similar to Sabga.
"It is my hope that corporation tax is left alone. Any upward adjustment in corporation taxes would place a tremendous burden on businesses operating in today's economic environment and would have a strong negative impact on the local business community. We may very well even witness businesses shutting up their operations as a result of any additional tax burdens," he said.
Rahael suggested that, instead of making changes to the current corporation tax regime, the Government should focus on creating a more diversified economy.
"For far too long successive governments have paid lip service to the much needed economic diversification of T&T. The Government should be focused on creating the necessary infrastructure and incentives that would allow businesses to grow and thrive and in so doing, they would actually be broadening the tax base and diversifying their revenue stream.
"Also, fostering business development would do much for the foreign exchange situation in our country. More businesses being able to export their products would be beneficial to T&T as a whole."
ANDRE WORRELL
andre.worrell@guardian.co.tt