The Credit Reporting Law

By Hon. Gilroy Usher, Port Loyola

“Your credit report and credit score are two of the most vital aspects of your financial health.”-

Erin Lowry

At the sitting of the House of Representatives on Friday February 3, the Credit Reporting Bill went through its final reading. After it is approved by the Senate and the Governor General in the coming weeks, the road will be paved for the establishment of Credit Bureaus in the country under the regulations of the Central Bank of Belize.

The new law will be a historic achievement for the administration, creditors and lenders, Belizeans who know the benefits of being credit worthy, and Mr. Maurice Underwood, who knowing the importance of a Credit Bureau in national development and had the vision to establish Credit Master System despite many challenges.

Credit is one of the most important things in an economy large or small. Credit makes all types of services accessible in Belize, the Caribbean, Central and South America, the United States, and all other countries through the world. With the Credit Reporting Law Belize is catching up with many others countries in the establishment of a system that protects the interest of creditors and lenders as well borrowers or the users of credit.

By issuing a credit score for individuals and businesses that is based on their credit history, a Credit Bureau offers creditors/lenders the opportunity to offer or deny credit whether with cash, goods, or services based on the credit history of applicants which increases the likelihood of them being paid by customers as promised.

A Credit Bureau develops its data base by collecting information from businesses that offer a wide range of services on credit. Some of the businesses that offer credit in the country are banks, credit unions, pawnshops, payday loan centers, insurance companies, Courts, hardware stores, grocers , corner stores , importers, and exporters as well as producers and manufactures.

Establishment of more than one credit bureau will be very good for Belize. Natural competition in the market will motivate the different Credit Bureaus to offer the most reputable service to increase their market share and profits.

In the United States Credit scores range from 300-850. The higher your score, the more credit worthy a person is deemed. Credit Worthiness ranges as follows: Excellent 800- 850; Very Good 740-799; Good 670- 739; Fair 580669; Poor 300- 579

In the absence of Credit Bureaus in the country many individuals access new credit in the same city, town, or village after refusing to pay (stiffing) one or more persons or businesses that offered them credit.

With the new Credit Reporting Law such poor business practice will decrease drastically. Quicker than expected, in a few months, whenever persons seek a line of credit from any business, it will be mandatory that they produce a credit report from a reputable Credit Bureau, in a similar way, that possession of a valid Social Security Card is mandatory to apply for a loan at bank. Realizing the importance of good credit fast, from 2023 onward, more Belizeans will borrow wisely and make every effort to pay for whatever service is offered to them on credit to maintain a good credit rating.

Maintaining their credit worthiness will also result in less individuals and businesses being taken to court for payment of bad debts. Many of those who find themselves in such unfortunate situations will willing make use of payment plans to pay their debts and regain their credit worthiness. The new Credit Reporting Law will also help to ensure that persons and businesses who accesses service for others on credit ensure that those beneficiaries make good on their payments as promised to protect their credit as good Samaritans. Unintentionally, the new law will result in a special fate for persons and businesses with poor credit rationing. By being in the bad book of hard payers, those who find themselves to the unenviable category will be denied access to an increasing number of services on credit, or they will be offered services on credit at much higher interest than person with good credit.

The clinic at the PUP Port Loyola office on Wednesday February 8 was a tremendous success. Many thanks to the staff and the many constituents including scores of new persons who took the opportunity to discuss a wide range of matters with their Area Representative Hon. Gilroy Usher.

Pursuant to Section 22 (2)(c) of The Tax Administration and Procedure Act, Chapter 51 Revised Edition 2020 (TAPA), which grants the Director General of the Belize Tax Service Department (BTSD) the authority to specify the manner in which returns should be filed, including electronically and with electronic signature, the Director General hereby notifies ALL taxpayers that effective April 1, 2023 they will be required to file tax returns and pay all taxes administered by the BTSD online.

In September 2021, the BTSD implemented the Integrated Revenue Information System (IRIS Belize) online portal. Only Large Taxpayers were required to utilize the portal, while all other taxpayers were encouraged to sign up and commence using IRIS Belize voluntarily. However, as part of a phased approach to fully implementing IRIS Belize, as of April 1, 2023, it is mandatory that every taxpayer is registered for an IRIS Belize account.

Commencing with the tax period ending 31st March 2023, and for subsequent tax periods, taxpayers must electronically file with the BTSD a return required to be filed for the tax period under the relevant tax law and make payment. The Department will no longer be accepting tax payments or filing of tax returns in the office. Payment and returns will only be accepted through the portal. This is aimed at making filing tax returns and paying taxes faster, more convenient, and free while ensuring and fostering the safety and security of the BTSD employees, as well as taxpayers. Equally, this will assist BTSD in providing more efficient and timely service to our taxpayers.

Please be reminded that per the governing tax Acts: The TAPA; The Income and Business Tax Act, Chapter 55 Revised Edition 2020; and The General Sales Tax Act, Chapter 63 Revised Edition 2020 of the Laws of Belize, each taxpayer is under an obligation to pay taxes AND file a return on or before the deadline for each respective tax type.

To register for an IRIS Belize account, visit https://www.irisbelize.bts.gov.bz/CreateAccount

In order to facilitate the transition process, taxpayers may seek technical assistance from the IRIS Belize HELP DESK which may be contacted via telephone at +501 613-8375; +501 6132773; +501 614-5731; +501 613-4711; or email at onlineaccounts_bz@bts.gov.bz during the hours of 8:00 AM – 4:00 PM on Mondays-Thursdays, and 8:00 AM – 3:30 PM on Fridays.