Two high-level meetings are scheduled for this week with officials in the Ministry of Finance to continue dialogue on government’s planned taxation of employee benefits and allowances.
The first meeting is scheduled to take place today between the Antigua & Barbuda Trade Union Congress (TUC) and its affiliates to discuss the Personal Income Tax PAYE, Employee and Shareholder Benefits and Allowances (2012) Guide, which outlines the measures.
The TUC then meets on Wednesday with officials in the Ministry of Finance to discuss the union’s perspective on the measure.
The TUC from the onset had warned of widespread industrial unrest if the government goes through with the planned taxation aimed at closing loopholes often exploited by employers.
The meeting, President of the TUC Kim Burdon said, will include all members and affiliates of the TUC who were a part of the initial discussions – “any union-type organisation, not just our affiliates but those groups that were a part of the initial consultations that we had invited to provide input and this will be held at 6 pm at the TUC head office.”
Meantime Cassandra Simon of the local branch of the Institute of Chartered Accountants of the Eastern Caribbean also indicated that her group, with the support of five other professional organisations, would be holding similar talks with finance officials to seek further clarification on the tax guide.
Simon said the grouping does not have fundamental problems with the revised version of the benefits and allowances tax guide, but clarification is needed on a number of matters enshrined in the document.
“There are discrepancies. If you receive a flat allowance and you have a vehicle, are you taxed on the value of the vehicle after allowances based on your salaries? Or are you just taxed straight? So there needs to be a bit of clarification there,” Simon told The Big Issues yesterday.
She added that more clarity is also needed to determine who is considered to be a “travelling officer” and referenced the section in the document which deals with subsistence allowance.
According to the document, payments made to employees, which are termed subsistence allowances, should be paid at a scale rate as determined by the location of the work site or travel.
It further states that subsistence in excess of rates set by the Inland Revenue Department will be deemed a taxable benefit and the IRD will set the rates on an annual basis.
The Institute of Chartered Accountants of the Eastern Caribbean Antigua & Barbuda branch along with five other organisations were the latest organisations to join the tax debate.
The other organisations are the insurance association, bankers association, bar association, medical and dental associations.
In a four-page letter to the Inland Revenue Department (IRD) last week, they recommended that the government continue its policy relative to the taxation of allowances and benefits, which it first implemented on the coming into effect of the Personal Income Tax (PIT) regime in 2006.
At that time, a decision was taken by the government to administratively dis-apply the law imposing taxation on benefits and allowances.
(Source http://www.antiguaobserver.com/?p=71122)
