Region’s tax administrators meet in Guyana

Jul 23, 2014 News

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Drawn from 11 territories, tax administrators are meeting in Guyana for five days to deliberate on a number of tax issues, exchange ideas and share experiences in keeping with the theme for the shaping of useful approaches to tackling problems common among administrations.
At the opening of the Caribbean Organisation of Tax Administration’s (COTA) 23rd General Assembly and Technical Conference Monday at the Pegasus Hotel, Minister of Finance Dr. Ashni Singh stated that the charge of the tax administrations of the region is to protect and mobilise revenue to meet the very substantial demands of the fiscal realities of countries.
The five-day conference is being held under the theme: Efficient Tax Administration as a Catalyst for Growth and Development in CARICOM.
Minister Singh noted that the theme is of particular relevance and importance, and expressed the belief that there is no time in the region when elements of the theme have been deemed more relevant.
Pointing to the fiscal challenges in the region, he observed that the fact that ‘we are at the risk of our own fragility’ is starker than at any time. The Minister pointed out that when some economies confront challenges of unsustainable debt, there is the reality of slow economic growth when there is no fiscal space to finance interventions. He added that some of the stronger economies in the region are now returning to financial institutions to formulate investments which are critical to catalysing economic growth for its people.
“We meet at a time when the global economy is unhelpful…when international trade taxes are becoming more and more scarce…when the flows of official development assistance are contracting rapidly…” the Minister pointed out.
He said that domestic revenue mobilisation thus takes on an unprecedented importance. Noting that during this period there is a temptation to raise taxes or adjust them to meet economic requirements; he delivered the central thought of his address.
“At a time when we need to attract more investment – both domestic and foreign – to make our business environment more competitive…when the need to mobilise investment is as great as it is…the need to make our business environment more competitive is as strong as it is…when we have such a strong imperative to facilitate business, how do we balance that dimension with the revenue protection or collection dimension of our mandate?.”
Minister Singh stated that this is the essence of the challenge confronting the region. He pointed out too that there is a need for the jurisdiction of tax revenues to be competitive from a tax perspective in order to be a taxpayer-friendly administration. There is also a need for a taxpayer-friendliness geared towards private sector growth and development.
“Balancing those two competing objectives is really our challenge as administrators and policy makers,” the Minister added. Business facilitation and revenue protection should move from being competing objectives and made complementary objectives.
Guyana has developed a response to this challenge, Minister Singh stated, pointing to the establishment of a single revenue authority and the implementation of Value Added Tax (VAT). These, and the administration and enforcement of the tax laws, were all aimed towards strengthening tax administration in the country.
Regarding tax policy, he observed that the merits of VAT eliminated six other taxes and doubled the free income tax threshold, reduced personal income tax rates and corporate tax rates. Taken together, these measures have contributed to revenue mobilisation while at the same time making Guyana an inviting place to do business.
He noted that the COTA meeting would enable a sharing of experience which would allow cooperation across tax jurisdictions.
Charles Cudjoe, Commissioner in Charge of Collections/Taxpayers services of Trinidad, presented to the conference, the message of the President of COTA. The message focused on promoting regional tax administration through cooperation and harmonisation with a view towards efficiency. The COTA President observed that the organisation has evolved beyond providing technical assistance and training, and can now be seen as the premiere tax organisation in the region.
Ms. Desiree Field-Ridley of CARICOM in her presentation focused on dialogue, collaboration and joint decision-making. She noted that the conference comes at a time when CARICOM countries have not yet recovered from the international financial crisis which negatively affected them. She noted that this is appropriate for the position of tax administrators since COTA is emerging as an important regional body. COTA was established in 1971 at a meeting of the Heads of Regional Tax Administration convened in Saint Lucia when its Constitution was ratified. This year will mark the 43rd anniversary of the establishment of COTA.
Guyana held the presidency for the period 1984-1986 through Mr. Edgar Heyligar, then Commissioner, Inland Revenue Department. (GINA)

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