Time for tax compliancecertificates

THE EDITOR: As the Prime Minister has recently pointed out, one of the main contributors to the Government’s current straitened financial circumstances is the fact that a large proportion of both individuals and companies are just not paying their fair share of tax, whether it be PAYE, VAT or Corporation Tax.

The PM has clearly stated that what is required is a better, more efficient tax collection and enforcement system, and in this context I would like to propose the introduction of mandatory tax compliance certificates.

These would generally be along the lines of the tax clearance certificates required many years ago for travel out of the country, but would be more all-encompassing and, more importantly, strictly enforced.

The first step, of course, would be to reintroduce legislation to require every adult and every company to submit an annual tax return (why this was abandoned several years ago, I do not know). After processing of the tax returns, and receipt of any sums owing, the new Revenue Authority could issue the tax compliance certificates.

In the case of individuals, presentation of these certificates should be required for the issue or renewal of all passports, driving permits and ID Cards, as well as any application for government services including grants, housing allocations etc, and a valid certificate should also be required to vote in any election.

Similarly in the case of companies, valid certificates should be required for the supply of goods and services to all government departments and State enterprises, all contracts with State bodies, and all government services and incentives.

I am convinced that a proper, strictly-enforced tax compliance system along these lines is urgently required.

GARY N VOSS via e-mail