The Chamber of Commerce has called for a new budget measure that allows businesses with tax arrears due by January 2021 to pay no tax due on the transfer of ownership purchased before March 2021 on their arrears.
The new measure allows them to be exempt from tax on real estate transfers to the extent that they are in arrears.
The Chamber declared that this was an unfair practice. “Like any other ploy to put taxpayers in order, this device only benefits defaulters and ignores those who have paid their taxes,” the Chamber said.
“This in itself is unfair to employers and businesses who pay their taxes when and when they are due. This legal opinion is only intended to proliferate an unfair playing field in favor of those who are in default and who are accustomed to using their taxes owed as an overdraft facility.
The Chamber says that the legal opinion suggests that arrears who do not have the money to pay their dues quickly, can only do so by liquidating their assets. “This legal opinion indicates that the government believes that tax money was used to buy a property … If we are not to see this cavalier behavior in the future, we need to make sure people are not in. able to purchase additional property before settling their tax arrears.
The House said that only then should a property transfer tax exemption be allowed until Dec.31, 2022 and be effective in curbing old habits.
“Those who fail to pay their taxes to finance speculative activities can also end up indefinitely delaying the settlement of trade credit, to the detriment of the companies that supply them.
“Such practices are extremely damaging and should be discouraged. It would be nice to see programs designed to help companies collect their dues from defaulting unrelated parties who are heavily invested in real estate. ”
The Chamber wants a blacklist of companies that do not honor their tax obligations and are prohibited from participating in public contracts. “There is no level playing field between companies that honor their obligations and those that don’t. Competitive appeals must take this into account to encourage greater compliance and combat unfair practices. “