KPMG wants better tax systems
Auditing and tax advisory firm KPMG is calling for establishment of the T&T Revenue Authority (TTRA) so there can be a structured way of collecting taxes.
“The current main tax authority does not appear to have structured means, if any, of treating with businesses that conceal transaction to avoid tax or operate outside the tax system. The fact is that it is ill-equipped to deal with the complexities presented in doing business in today’s world,” the company said in a pre-Budget statement.
Referring specifically to the tax amnesty which ended on Friday, KPMG said given skepticism over the effectiveness and the frequency of such measures, it looks forward to hearing from Minister of Finance Colm Imbert on the actual revenue compared to what would have been collected if there was no amnesty.
“What should be considered is increased tax audits across all sectors by the Board of Inland Revenue covering years of income within the statute of limitation of corporate taxpayers who benefitted from the boom years when oil prices were at their highest,” the company said
KPMG is calling for a transfer pricing regime to be implemented so that overseas multinationals operating in T&T can pay taxes.
“The new administration has spoken to the implementation of a transfer pricing regime to treat with non-resident multinational companies with complex related party structures. Many of these structures can be used as a medium for tax avoidance and it is hoped that the introduction of a transfer pricing regime will significantly reduce the outflow of taxable revenues.”
In the budget to be read by the Finance Minister on September 30, KPMG wants some focus on the effectiveness of the VAT reduction so that taxpayers can have an appreciation of that decision.
