AN AMENDMENT to the Hotel, Restaurant and Tourism Tax Ordinance to require restaurants to remit the taxes they derive from the deposits made on cancelled bookings and to keep proper records has been passed in the House of Assembly.
Premier Sharlene Cartwright Robinson read the amended bill in the House on Tuesday (May 30) calling for the full support of the Assembly.
In short, the amended bill seeks to correct “mischief” by imposing certain duties on the part of proprietors causing them to keep records and dealing out penalties for non-compliance, the Premier said.
She further explained the amendment – It seeks to amend the Hotel, Restaurant and Tourism Taxation Ordinance to provide for the imposition of a duty on proprietors to keep a record of deposits and receipts for reservation and services and of the cancellations of those reservations.
It also seeks to amend the prohibition of proprietors collecting tax on any deposit paid and for which the reservation was cancelled and the amount forfeited by the proprietor in respect of the cancellation.
It also amends the imposition of a duty on proprietors to remit to the Permanent Secretary of Finance the tax that the proprietor collects on deposits paid, the creation of an offence and penalties for the collection of any tax on deposits paid and for any failure to remit any such taxes collected by the proprietor to the PS Finance.
It also imposes a duty on proprietors that own premises that are used for the purpose of habitually meals for rewards to keep proper books and records.
Also, it paves the way for the imposition of a duty on proprietors that own premises that are used for the purpose of habitually providing meals for reward to permit to the PS Finance to inspect these books, records as well as other documents in respect of designating a restaurant.
And finally, the amendment allows for the creation of an offence and for penalties for obstructing the Permanent Secretary Finance from entering premises that are used for the purposes of habitually providing meals for rewards to inspect any books, records and other documents.
“I believe the mischief jumps out at us as to why we need to bring this amendment and I believe that it should receive full support in the House,” the Premier said.
Governor’s appointed member, John Phillips, in supporting the bill stated that he understands the need to curb some shady practices.
However, he questioned whether local restaurants that do not cater to tourism to any significant amount, would also be required to keep similar records and be subject to inspections on the basis that they may be receiving a substantial income from tourism and therefore should be remitting taxes.
He stated that if these establishments are required to keep such records, some of the smaller local restaurants may have difficulty complying.
The amendment bill was given full support by members of the House and subsequently passed.
Commenting later in the Assembly on the support thrown behind the amendment, was Minister of Tourism, Ralph Higgs.
Higgs said: “It shows that when the political parties decide to work together we can achieve great things for our people.
“I can assure you that my Government is committed to bringing forward in a proactive way, bills that would improve the lives of our people and we ask our friends from the other side to let’s continue this spirit of cooperation and this spirit of bipartisanship to do the work of the people.”
In short, the bill requires proprietors to keep records, the length of time those records should be kept which is 24 months, and it gives the power to the permanent secretary to enter premises to have the books produced at a certain time.
There is also a penalty for failure to comply.
