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PUP Calls Out BTL, GOB For GST Bill
posted (July 3, 2019)

Last week we reported on the audit that the GST office did which concluded that BTL owed 29.3 million dollars in unpaid taxes.  But, that happened last year, and no assessment has been forthcoming.  The Financial Secretary - who is the keeper of the public purse - told us that the company owes nothing, and an audit is ongoing but not completed.  He added that there has been some lack of clarity about technical issues concerning intra-company transactions.  

But, clarity or not, assessment or not, the PUP is seizing on the issue  which seems to have woken the opposition up from a long political sleep - induced by the ICJ referendum result.

Today, the party leader and his shadow minster for communications shook it off, and shot out with a broad indictment of BTL's upper management, its board of directors and the Ministry of Finance.  Here's what they had to say:..

Hon. Kareem Musa - Area Representative Caribbean Shores
"If the audit confirms that there was under reporting. If it shows that BTL has not been paying the proper GST since 2012, then why has the GST department giving special treatment and protection to BTL by not issuing an assessment? Again, this latest BTL GST scandal clearly shows is that there is one law for the UDP and the government owned BTL and another law for the rest of the hard working Belizean businesses, NGOs, farmers and consumers. So, Belizean business people are subject to arrest but when BTL is alleged to have committed worse violations of the law, then there is nothing to see, nothing going on and not a penny owed. This is a blatant cover up. Today, I am happy to report that the party leader has written a letter to the man behind it all, the man that has been hiding behind the curtain, the Wizard of Oz, the Prime Minister himself to demand full disclosure of the financial affairs of the 'people's company', BTL."

Reporter
"Do you reasonably expect that the Belizean people or the government will come clean? What must be done for that to happen? Because they can deny, deny all the way to the bank."

Hon. John Briceno - Leader of the Opposition
"Well we reasonably expect that the government would say the truth and not a cover up. There is some concern when the chairman of the board is saying.... first of all, let's making something very clear, nobody is saying that BTL is not paying its taxes, what we're saying is that they are not paying all their taxes. Secondly, you need to ask, who is telling the truth? Mr. Vasquez is saying that they owe nothing but yet both the financial secretary and Mr. Evan Brown, the acting commissioner of GST, both have been saying there's an ongoing audit."

Reporter
"I think one of the explanations that the financial secretary has tried to give without offering details is that there may be a misconception of inside sales. Like sales of equipment within BTL and its subsidiary companies and the way that is taxed. Are you aware of that?"

Hon. John Briceno
"For the telecom companies, what they have done because telecom is taxed at 19% GST. What they do is set up a marketing company so that they can sell their talk time through where they only pay 1.75 and that is where BTL is playing with the numbers trying to see how best they could avoid paying some of the taxes that they have to pay."

We note that Briceno referred to the tax practices of "Telecoms companies" and what "they" have done.  Well, there are only two such companies, and Briceno's family owns one.  

We asked if the PUP's re-appearance before the press today - after two months of media silence post ICJ referendum - has anything to do with the fact that his family has a vested interest in how Telecoms are taxed:..

Jules Vasquez
"Is that you are speaking now on an issue not as consequential as the referendum, consequential no doubt but not as consequential as the referendum. Is that because of a personal business interest?"

Hon. John Briceno
"I think that, I have to divorce myself from my personal interest to what is the interest of the people. Here we have a damning report that shows allegations from the GST department. It's not something that we fabricated and it displays that BTL could potentially owe 29 million dollars in outstanding GST. When you add the interest you’re talking about over 50 million dollars. I believe that as the leader of the opposition, I have not only a legal responsibility but a morale responsibility to speak out."

Telecoms pay a business tax of 19% on their gross revenue.  

This morning, two minutes before the press conference started, the Department of General Sales Tax issued a statement - the first we've ever seen from that office.   It says, quote, "â€Â¦an audit is currently being conducted and the process is in train.  The Department's position is that BTL is compliant in fulfilling their obligations to file and pay monthly as is required by law. Â The Department is presently awaiting the completion of the audit that will determine BTL's tax position."  End quote.  Â Ã‚ 

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