Dept. Of Inland Revenue Turns Up the Heat on Tax Collections

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NASSAU , BAHAMAS – The Department of Inland Revenue is shifting things into high gear, using technology and stronger enforcement to close the gap on unpaid taxes and bring in more revenue.

Back in May 2022, the department broke its silence on what it called a massive one-billion-dollar tax crisis.

During a press briefing in May by the department, Controller Shunda Strachan warned then of what she called “unacceptable non-compliance” across the country.

The message was clear, the department was moving beyond simply asking taxpayers to pay.

Strachan now says that push is producing results.

During a press conference at the Office of the Prime Minister Monday, she revealed that Inland Revenue accounted for 46 percent of the government’s revenue last year.

Shunda Strachan – Controller, Department of Inland Revenue

“This year, we are expected to bring in over two billion dollars, just over 2.3 billion dollars, and we will be accounting for more than 52 percent of the government’s overall revenue.”

That is a significant jump from 2013, when the then-newly established department had a revenue budget of just 256 million dollars, about 17 percent of total government revenue.

So, how did Inland Revenue climb out of the one-billion-dollar hole it identified in 2022?

One of the answers, enforcement.

The department has been using its power of sale authority, which allows the government to seize and sell properties at public auction to recover unpaid taxes.

And Strachan says taxpayers can expect to see more of it.

Shunda Strachan – Controller, Department of Inland Revenue

“You will see us doing more in the area of, unfortunately, power of sale, because we think quite enough time has elapsed where we’ve been working with people, and we’re not necessarily seeing the type of results we expected to see by now. So enforcement, unfortunately, will be increased.”

Since the power of sale process was implemented, 15 properties have been sold.

Inland Revenue is also turning to technology, with the full One Tax Administration System, or OTAS, set to launch September first.

The system will bring different tax and revenue functions under one umbrella, including business license fees, value-added tax, stamp tax and real property tax.

The goal, a more integrated system that can make it easier to track what is owed.

Shunda Strachan – Controller, Department of Inland Revenue

“So collections for us, we are actually doing well, but of course there’s always room for improvement. So this year, we really will be focusing on decreasing our arrears, which we still are quite concerned about.”