The news this week that the Board of Inland Revenue (BIR) had taken decisive action to recover taxes owed by the Trinidad and Tobago Radio Network (TTRN), the parent company of radio stations 96.1 We FM, STAR 94.7 and 107.7 Music for Life, generated a great deal of discussion on the forums of traditional media, social media and in other places where citizens meet to discuss public affairs issues.
The news, which was first reported by Guardian Media, went ‘viral’ because of the popularity of Anthony “Chinese Laundry” Chow Lin On, who first gained national attention as a DJ. Mr Chow Lin On eventually branched out to become a music producer and owner of a radio network and a quick-service restaurant in Port-of-Spain, among other businesses.
The initial reporting on this matter indicated that Mr Chow Lin On owes the BIR $34 million, exclusive of interest, and that the unpaid tax amount was for the period 2015-2024.
In a news release yesterday, the radio executive said there has been a great deal of “noise and misinformation” in the public domain regarding TTRN’s finances. He said the network is fully committed to fulfilling its obligations to the BIR but did not specifically address the issue of the amount of money he owes or the period of time his tax liabilities have accrued.
Guardian Media also reported exclusively last night that MovieTowne owner Derek Chin has also initiated a plan to pay some $93 million in taxes owed to the BIR by his cineplex chain.
In general terms, the law of T&T, as enshrined in this country’s Income Tax Act is: “Income tax shall...be payable at the rate or rates specified hereafter for each year of income, upon the income of any person accruing in or derived from T&T or elsewhere, and whether received in T&T or not ...”
The legal obligation for all T&T residents to pay taxes on their income, above the threshold of $72,000 a year or $6,000 a month, is clear. This legal obligation is connected to the moral obligation that all citizens are required to pay taxes on their income in order to contribute their fair share to the general maintenance of the country.
It is obviously unfair that those employees, whose income is taxed at source, are obliged to pay at least 25 per cent of the income they earn over $6,000 a month, while there are scores of businessmen and others who pay no taxes for years.
This is particularly inexcusable because the current administration has offered the public two tax amnesties in the recent past. Those amnesties waived penalties and interest on outstanding tax liabilities, provided that the principal amounts were paid within the period specified in the enabling legislation.
It is perplexing that there are people in T&T who could ignore the tax amnesties in 2019 and 2023, but can declare full commitment to meet their obligations to the BIR when the authorities pay attention to them.
The BIR, now said to be owed as much as $15 billion in taxes, deserves the plaudits of the population if they have decided to crack down on those who evade or avoid paying the taxes they owe. But the BIR must respond to the question on the minds of many: Why did the Government department responsible for collecting the country’s taxes wait for so long before seeking to address the outstanding tax bills of two citizens?