BBCI income tax exemption absurd - Ram

BBCI income tax exemption absurd – Ram

Sep 24, 2013 News

Chartered Accountant, Christopher Ram, in his weekly column has said that it’s ridiculous and absurd, that the financial statements of the Berbice Bridge Company Inc (BBCI) actually claim that it is exempt from, “income, corporation, property and withholding taxes.”
Ram in his column this week sought to highlight the many irregularities of the Berbice Bridge Company.
According to Ram, the company in its report filed this past week has ignored the question of taxes.
He said that it is not clear whether the corporation tax exemption, on which the company is relying, is by virtue of the Berbice River Bridge Act or whether it is the Income Tax (In Aid of Industry) Act, which requires a tax exemption letter from the Minister of Finance.
The Berbice Bridge Act does provide for “corporation tax, income tax and withholding tax” exemptions for the duration of the Concession Agreement
Ram explained that the Financial Administration and Audit Act, provides that tax remissions, waivers and concessions are only valid, if expressly provided for in a Tax Act or any subsidiary legislation.
According to Ram, the Bridge Act is not a tax Act and it seems that concessions purported to be granted under that Act are invalid.
Ram suggests that the Income Tax (In Aid of Industry) Act “seems hardly any more helpful.”
He said that the act sets specific criteria which any successful applicant must satisfy, including activities that “demonstrably create new employment in infrastructure development.”
Ram explained that the bridge, socially and economically beneficial as it is, cannot be said to have demonstrably created new employment.
“If anything, it has displaced employment,” Ram stated. He said that while it can also be argued that the construction of the Bridge was infrastructure development but its operation is not.
“The concession under the Berbice Bridge Act violates the Fiscal Administration and Audit Act and in any case does not exempt the company from Property Tax.”
In respect of the Income Tax (In Aid of Industry) Act, the Bridge activity does not seem to satisfy the criteria for the exemptions.
“Maybe Mr. Brassington and NICIL will engineer an amendment to the Act to accommodate BBCI, just as the Government did when it recognised that the Ramroop group was granted tax concessions which were unlawful.”

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BBCI income tax exemption absurd – Ram

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