Those records show that the Wyndham Nassau Resort owes $10.9 million, while the Royal Oasis casino owes $8.5 million.
The Atlantis casino is the only casino operating in the country that is up to date in paying its taxes to the government.
The Paradise Island resort paid $6.6 million in casino taxes for the first half of 2003, according to the records.
Robert Sands, general manager of the Wyndham, told the Bahama Journal that he was unaware that his hotel owed as much as $10.9 million in casino taxes.
“I don’t know where they got that from,” he said. But Mr. Sands added that he knew the amount was significant.
He said that the taxes owed were accumulated over an 18-month period. He added that there are ongoing discussions with relevant government authorities on the matter.
“There are a number of other matters that are connected,” Mr. Sands added.
He could not say when the hotel planned to pay its casino taxes.
A source close to the government said that the Wyndham has complained to officials that it is facing financial setbacks at this time, but Mr. Sands denied that this was the reason for the taxes remaining unpaid.
The Wyndham is also facing pressure from the Bahamas Electricity Corporation (BEC) to pay millions of dollars it reportedly owes for electricity.
Meanwhile, officials at the only casino operating on Grand Bahama have not responded to Bahama Journal inquiries regarding their unpaid taxes.
Government officials are said to be facing a tough decision on exactly how these casinos should be dealt with, given that they are responsible for employing hundreds of Bahamians.
The government source said officials are “stuck between a rock and a hard place.” He said pressuring the casinos to pay taxes could result in eventual financial strains and even closure of those properties, which would put many Bahamians out of work.
The collection of the nearly $20 million in unpaid casino taxes would be significant as government officials spent much time during the budget debate in June pointing to the need to improve tax collections.
Prime Minister Perry Christie has said that authorities must improve efficiencies at tax collection offices and those who are not now paying their taxes must begin doing so.
Chairman of the Gaming Board Kenyatta Gibson, who was questioned this week regarding the outstanding casino taxes, reminded that the Ministry of Finance is responsible for the collection of those monies, not the Board.
“It is unfortunate that many of our corporate partners are unable to pay their taxes at present,” he said. “What is necessary, however, is cooperation to work out an understanding between the government and corporate citizens. [The government needs to] get the payment of these taxes in as soon as possible, especially in this day and age when [we] have serious revenue concerns.οΎ”
“There is a substantial amount of taxes that have been unpaid to date that we are aware of at the Gaming Board,” he said. “This is especially unfortunate when you consider that those particular taxes are calculated on the basis of the win. So, really, unless the casino is making money, they’re not taxed. We would like our corporate citizens to be a little more diligent in the payment of those taxes.”
Mr. Gibson said there are “steadfast efforts being made” by the relevant government departments to make sure that the casinos that are in arrears bring their payments up to date “as soon as possible.”
“We are communicating to them the need to pay and certainly we expect that they will cooperate,” he said. “We don’t want to get to the stage where we’re threatening corporate citizens, but of course there are remedies in the law.
“But we haven’t reached that stage.”
When he appointed the Gaming Board last year, the prime minister mandated its members to examine gaming legislation.
“He is aware of the need for legislation to keep pace with the advancement of the industry as a whole internationally so that we can maintain some competitive edge in a world where our competitors are increasing every day,” Mr. Gibson said.
There are also efforts to bring legislation to parliament to make the Gaming Board responsible for the collection of casino taxes, the Journal has learnt.
The Bahama Journal
