by Linda Straker
- Over EC$777 million in outstanding taxes owed to Government
- Tax amnesty announced in 2023 budget presentation
- Tax amnesty programme from 1 January to 31 December 2023
The International Monetary Fund (IMF) has advised the Government of Grenada not to continue a tax amnesty programme implemented on 1 January and scheduled to conclude on 31 December 2023.
“We emphasised several times to the Government that this one should be the last one… it should be very deeply in people’s minds and those who are owing tax to the Government that this should be the last one,” said Huidan Lin, IMF Mission Chief for Grenada, in the just concluded Article IV consultation of the IMF’s Articles of Agreement.
The tax amnesty was announced in the presentation of the 2023 budget statement by then Finance Minister Dickon Mitchell. He explained that millions were outstanding in taxes, late fees, and penalties, and the amnesty aimed to settle money owing to the Government.
Lin said that the Government doesn’t only have to say that there will be no more amnesty, but it also has to step up on enforcement of the Tax Administration law. “The Government will have to engage in stronger enforcement in collecting its taxes. This will really signal that we want to strengthen the enforcement,” she said during a news conference on Friday.
To legalise the tax amnesty, the Government had to amend the Tax Administration bill, and at the recent approval of the amendment, current Finance Minister Dennis Cornwall warned that he would not offer mercy to those who failed to clear their outstanding debt with Government during the amnesty period. “I want to send this warning, as Minister of Finance, if I ever had the opportunity after this amnesty is over and there are people out there who have not taken advantage of this thing, I will have no mercy to enforce the law.”
“Amnesty sometimes is good, but it’s not the ultimate solution to the problems that we face in taxation. There are those of us who believe that we can always fix the bill, put it that way, and not pay the tax. To some of us who don’t understand that Government can sell your property, those properties that probably you are going to hold for your kids down the road, because you are trying to avoid paying tax,” he added.
The Prime Minister said over EC$777 million in outstanding taxes owed to the Government.
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