Avoid ‘jack up numbers’ on Business Licence renewal

frustration for the business community.

Mrs Rutherford-Ferguson then added that a recent Chamber survey found close to two-thirds of all business respondents, between 57 percent and 65 percent, have concerns about government regulations and red tape; government taxes and fees; and inflation.

However, Mr Turnquest and several accountants, who all verified their clients’ turnover and helped them submit their Business Licence renewal applications by the end-January deadline, yesterday told Tribune Business that the process had been “smooth” and “routine” provided the company’s accounts and financial record-keeping were in order.

Confirming that the Department of Inland Revenue was requesting “proof of income” and landlord property tax assessment numbers once renewal applications were made, Mr Turnquest said: “You have got to have a systematic approach to doing business. You have got to have current financial information. If you do, all you have to do is upload the income statement from January 1 to December 31.

“When they do that, my members and clients get their licence approval in two to three days. They [the Department of Inland Revenue] want revenue, gross profit, expenses and net profit. They’re not concerned about anything other than revenue. They want you to have an income statement; that’s what they specifically ask for.

“The persons with the 242 Small Business Association, in my experience and that of my members, is that once you have proper financial records everything will take two to three days. But if you run a poor business you will have delays on all your stuff.

The problem is those people who run a business like they are a bunch of jokers can’t verify anything, can’t get an income statement, so they are not running a sensible business and accounting with jack up numbers that don’t make sense,” he continued.

“If you go into business you must behave as if you are in business by keeping management, operations and accounting records up to date. You have to look at your business plan every year and make adjustments.” Similarly, Philip Galanis, the HLB Galanis managing partner, told Tribune Business that keeping proper financial records was critical “to be in business in the 21st century”.

“It went extremely well,” he said of Business Licence renewals. “I was very, very impressed how quickly we were able to get an acknowledgement from the Inland Revenue. We submitted the reports and verification. There were no hindrances at all. People recognise they’ve got to be more attentive accounting for business costs even though there are a lot of people out there that don’t.

“The Bahamas has got to recognise, and business people have to recognise, that if you’re going to be in business for the 21st century you have to keep some semblance of records of what you’re doing otherwise how will you know how your business is performing?”

Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez principal, said of Business

Licence filings: “It’s been routine. It’s been business as usual. For my clients, this year has been like all the most recent years where Business Licence filings have been routine. The calculation to this point has been routine.

“We know businesses have been hard hit by the COVID pandemic, so payments this year like last year will be a challenge for some, but in respect of the calculation of licence fees that has been routine. An integral part of the success of any business is to be organised, and key to that is a system of reporting financial results. It makes it easy for the Business Licence process and the accountants who now have to deal with the fees if you have an established reporting system.”

However, the Chamber’s Mrs Rutherford-Ferguson said: “Requiring businesses earning under $100,000 to submit proof of income when this was not a requirement previously, nor being provided with adequate notice, is depleting their already challenged efforts. This gravely impacts micro and small businesses that do not have the resources to quickly have this information gathered in an acceptable format.

“Business License renewals, which previously took significantly less time, are now taking three to four weeks or even longer to obtain. These decisions have added to the mounting frustration of the private sector, added delays, and continue to hinder the timeliness in how businesses are able to operate and prepare for the future.

“Businesses suffer and cannot properly plan when the the Government of The Bahamas makes policy shifts that have a material impact on how they are to operate without providing a fair and adequate notice period for implementing new policies.”

The Chamber chair voiced similar concerns about business tenants having to provide their landlord’s real property tax assessment number for

Business Licence renewal applications, even though officials have previously said supplying the name and address/location will suffice if the building’s owner proves uncooperative.

Kwasi Thompson, the Opposition’s finance spokesman, yesterday echoed Mrs RutherfordFerguson by saying: “We demand that the Government immediately reverse their hastily imposed and ill-advised requirements for business owners to chase down the real property tax information of their landlords.

“In no scenario is that a reasonable requirement of a tenant. We demand that the Government cease its requirements for proof of income during this licensing period for micro and small businesses. If the Government wants to change the financial information required from small businesses, it must give the businesses at least six months to plan for and adequately provide the information - with provisions for the training and support of small businesses.

“This is an added expense that some businesses will find very difficult to meet. We demand that the Government cease its wholly unreasonable and expensive demand that all Customs brokers pay to integrate with its Customs Click2Clear system. This should be something that is wholly optional for brokers. And if the Government wishes to demand integration, the Government must be prepared to foot the lion’s share of the costs.”

Accounts Cler (Nassau)