Bowe stresses it’s time to consider income or corporate tax
A tax expert is predicting that the government will have to once again revisit the country’s tax structure in another year or so, as it prepares for ascension to the World Trade Organization (WTO).
Bahamas Institute of Chartered Accountants (BICA) President Gowon Bowe said as uncomfortable as the conversation may be, it’s time to start considering an income or corporate tax.
“I think that while we don’t like the conversation around income tax, corporate tax, progressive tax structures that effectively tax you based on your ability to pay, that is the only way you will get to a system of equity where persons don’t feel disadvantaged because they earn less,” Bowe said to Guardian Business recently.
“I think persons who are not emotional about the taxation topic would say to you that as long as there is inequity in a tax system there is going to be unrest as it relates to it.
“So when we look at the bulk of who pays taxes, in reality the person who is on the lower income spectrum is spending a far greater percentage of his income, relative to the taxes that he pays. The higher income earner is paying a lot less relative to his overall compensation.”
CEO and Executive Director of the Bahamas Financial Services Board Tanya McCartney suggested that The Bahamas will have to look at implementing a corporate tax if it is to get off, and remain off, lists of non-cooperative jurisdictions in taxation matters.
McCartney said the financial services sector has been pushing government to implement a corporate tax in order to curb the idea that The Bahamas is a jurisdiction devoid of taxation.
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