QC: Vat Rejected If No ‘Value For Money’ “If we’re now going to get to a position where Bahamians are paying a more direct form of taxes, it must be entirely reasonable that Bahamians are going to expect higher levels of accountability and transparency in public spending,” he said. “If you want Bahamians to pay more taxes out of their pockets, you must accept it is reasonable for them to expect a higher level of accountability for the spending of that money, and a higher level of transparency. “One fundamentally goes with the other. The basis of any taxation system is fundamentally not enforcement, although it’s a critical part of any system. It’s ultimately based on acceptance by the general public that the majority of their tax dollars are spent wisely, and that’s the key. As a Bahamian asked to pay more taxes, I expect to have improved public services.” Mr Moree said both the current and future governments needed to accept that, post-VAT, they would be “called to account at higher levels for how they spend these tax monies”. Such a “partnership” between the Government and taxpayer had yet to be developed, the leading QC describing this as vital to giving Bahamians confidence they would “get value for money for their taxes”. “I don’t think enough has been done to promote this debate and demonstrate to the Bahamian people that if they’re called on to pay more taxes, they will get greater efficiency out of government in public services,” Mr Moree told Tribune Business. “They will get higher levels of transparency in how their money is spent, and higher levels of service. “I don’t think that case has yet been made. It’s a critical point to develop a culture in the Bahamas that accepts the obligation to pay taxes in order to ensure the proper development of our country. This is a debate that needs to take place,” Mr Moree added. “It’s a two-way street. We as Bahamians must accept the need to pay more taxes, and political leaders have to account for their level of stewardship, be more transparent and, as we pay more taxes, we see a more efficient level of government services, improved amenities and infrastructure.” The well-known QC told Tribune Business that Bahamians had to know “I’m getting something in return for my taxes” if VAT, and wider fiscal reform, were ultimately to succeed as intended. “It is difficult for any government to rely on its coercive powers to compel people to pay taxes,” Mr Moree reiterated. “There are limits to enforcement. “You’ve got to show the public there’s value for them, that it’s in their interests to pay these additional taxes. Because public services, amenities, infrastructure are improved, the quality of life is enhanced. “As long as the public thinks their money is being spent unwisely, imprudently, there’s going to be no compliance in paying taxes.” tribune242/news/2014/dec/12/qc-vat-rejected-if-no-value-money/?news
Posted on: Sat, 13 Dec 2014 02:08:23 +0000
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