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Departure Tax Scam, A “Massive Rip-Off”

Works and Utilities Minister Bradley Roberts last night called for the appointment of a committee to investigate the “massive rip-off” of the public purse as a result of a departure tax scam that has been going on for years.

“They should report to this House and let it all hang out and invite the police to take the appropriate action,” Mr. Robert said.

Mr. Roberts said he knows of cases over the years where some airlines have fired employees because they have been stealing departure taxes.

In some cases, these employees have changed the age of passengers to under six and pocketed the monies collected. Young children are exempt from paying the tax.

Mr. Roberts was speaking on a bill to amend the Passenger Tax Act which would require travelers to pay their $15 departure taxes when they purchase their tickets. Government officials believe this system would be more streamlined and would help guard against the pilferage that has been taking place.

MP’s wrapped up debate on the measure around 7pm . The Bill was then read for a second time.

House members spent the day recounting the huge losses the government has suffered as a result of uncollected departure taxes.

Earlier in the day, the Member of Parliament for Fort Charlotte Alfred Sears said that between 2000 and 2001, there was a shortfall of departure taxes of nearly $30 million.

Mr. Sears said that the bill, when enacted, would bring some integrity to the system of collecting departure taxes.

The lack of proper receipts and checks and balances at the nation’s borders has led to the loss of millions of dollars, he said. “This bill is intended to bring some measure of efficiency to the collection of tax that is already on the books,” he said.

Minister Sears said the government has evidence of theft of departure taxes that was not turned over to Customs officials. But he said the former government turned a blind eye to the problem.

Minister Roberts reiterated this point.

“The truth about the FNM Administration’s fiscal track record becomes more odious to my government and the people every day,” Mr. Roberts said. “I now liken the FNM Government to a slick and shady used car salesman trying to convince you of what great shape his vehicles are in to convince you to provide the financing for the purchase of the vehicle.”

Mr. Roberts called the bill before parliament another “stop the bleeding measure” needed to be taken by the government.

“It has to be done as a result of the FNM Administration’s failure in so many areas to not only not collect government revenue, but also because of its failure to ensure that the Bahamian taxpayer gets value for its tax dollars.”

Mr. Roberts also charged that the former government was “irresponsible” in carrying out infrastructure works during its time in office.

“Everywhere we look the infrastructure and the FNM claims haven’t lasted longer than they were in power,” he said. “The schools are in shambles. The airports are a horror story. The Prince George Dock, which is the major tourist gateway to the Bahamas , is an accident waiting to happen and the road project went belly up and some new buildings for one reason or another cannot be opened.”


By Candia Dames, The Bahama Journal

Posted in Headlines

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