Published by Youri Kemp, Nassau Guardian, August 26th, 2024
The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) said it was not surprised to learn that the majority of businesses grossing over $5 million were unable to have their accounts audited within the Department of Inland Revenue’s (DIR) 12 month deadline.
Dr. Leo Rolle, executive director of the BCCEC, told Guardian Business, “We note the comments of a senior official at DIR indicating that 75 percent of businesses requiring full audited financials are requesting extensions and we cannot help but say we told you so.”
The BCCEC and Bahamas Institute of Chartered Accountants were strongly opposed to the introduction of this requirement and spoke out passionately about the same.
“We urged the government to delay the requirement for 12 months to allow businesses to prepare for the more invasive audit or review,” Rolle said.
“Despite our cautions to the government, noting accountant shortages, short window for implementation, business license cost increases and the myriad of other challenges facing the business community, the system was implemented with little business community consultation and educational awareness campaigns.
“The very ramifications of our concerns are now being felt across the business community impacted by the unreasonable timeline.”
Last Thursday, DIR Acting Director Shunda Strachan said the majority of businesses, about 75 percent, required extensions.
“We granted these extensions because this is the first time we are implementing this requirement,” she said. “We are also aware that businesses have faced challenges in sourcing auditors to complete the work. We expect most of the statements to be submitted by October or November, and we are comfortable with the ones we have received so far. This exercise highlighted the necessity of audits for large businesses, not just for us, but for their benefit as well.”
The first deadline when the mandate was announced last year December was for April 2024, which was then extended to the end of June 2024.
Rolle said: “While we acknowledge the DIR’s grace period and allowance of an extension, we must stress the increasing impediments to the ease of doing business in The Bahamas. Apart from this issue, members continue to lament the amended VAT offset process, which prohibits them from using credits to settle VAT due. We wonder, what is the rationale behind this?
“The BCCEC is a firm believer in consultation rather than confrontation and has been consistent in our request to meet with DIR officials to seek an amicable resolution to some of the woes of the business community. We remain ready and willing to assist, thereby avoiding these and other instances that hinder the ease of doing business in The Bahamas.”
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