Absurd power in Revenue Authority

THE EDITOR: The Minister of Finance has said that the idea behind the Revenue Authority is not to go after the “small fry,” but to be able to tackle the “big fish.”

Respectfully, this is naïve. Empowering of tax collection as an executive exercise can fall into the hands of the same big fish when they or their party groupings become the government. At that point the Revenue Authority would be beyond checks and balances and an enormous burden of litigation would have been landed upon affected taxpayers.

The example of course supposes that the tax collection powers could be used oppressively in the wrong hands. The likelihood is high. While it is true that the Customs and Excise powers have in the past been used oppressively, the powers of the Board of Inland Revenue (BIR) have been applied, by and large, with fairness and balance.

The problems faced by the BIR have had to do with (a) wealth-escaping taxation and (b) the enforcing of – collection on – judgements. All these issues affecting Customs and Excise and BIR could be solved by appropriate legislation and internal restructuring that enhance performance and effectiveness. Such an approach would have avoided the concentrated power in the Revenue Authority. The authority also represents three further levels or dimensions of abandon.

Firstly, the Constitution has been structurally altered by a government with a two- or three-seat majority.

Secondly, it was endorsed by the Privy Council whose role it was to say it is unconstitutional.

Thirdly, there appears to have been a well-organised effort to influence the Privy Council on this particular issue. When the “big fish” get into government they will be demanding to make changes to suit themselves, the same way.

E GALY

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