SBA Reminds Business Owners to Remain Tax Compliant

In a recently held virtual information session in collaboration with the Barbados Revenue Authority (BRA), members of the Small Business Association of Barbados and the general public were involved in an informative discussion on the importance of being tax compliant.

Presenter and compliance auditor at the BRA, Ms. Rhea Bryant, provided attendees with inter alia, an overview of the definition and benefits of tax compliance, the filing process and how business owners could correctly calculate their taxes.

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(Ms. Rhea Bryant providing attendees with information on how to determine their filing process)

Ms. Bryant began by highlighting the rights and obligations of tax payers including the right to a fair system administered in an even-handed manner and the obligation to register with the BRA and file returns with accurate information on incomes, transactions and relevant activities.

Self-employed individuals were given a specific list of tax obligations including the requirement to:

- Maintain proper books and records of all business transactions

- Keep a separate bank account for the

- Register with the BRA for all applicable taxes and

- File a tax return whether or not a profit was made.

Business partnerships were also advised of their obligations which included that the senior partner must ensure that all statutory requirements are met and they must file a VAT return where applicable.

Attendees were then made to understand that tax compliance would be the degree to which a tax payer complies with the tax rules and obligations stipulated in their country. Ms. Bryant emphasised the importance of being tax compliant, and stated that doing so ensured that the country’s systems continued to function by collecting the revenue needed to fund services provided by the Government.

The benefits of being tax compliant discussed in the presentation included:

  1. Avoiding penalties and interest
  2. Avoiding additional expenses such as legal fees
  3. Avoiding prosecution which may include fines or imprisonment
  4. An improved knowledge of financial affairs and records and
  5. It provides useful information for planning.

Finally, businesses owners were advised that there were different taxes administered based on the type of business entity in question and these taxes could include corporate income tax, withholding tax, product development levy, value added tax, room rate levy, PAYE and personal income tax.

To get more insight on which taxes apply to your business and to learn more about your business’ filing and payment process, watch the full webinar on the SBA’s Facebook page at www.facebook.com/sbabarbados