Garth Rattray

ONCE, I happily fulfilled my civic duty as a registered taxpayer. But all that changed in 1991 when I was randomly audited. My accountant back then (a former revenue agent) remarked tha I had always submitted returns, once I was audited, it would herald the beginning of lifelong demands and suspicions by the Inland Revenue Department. He was absolutely correct. I was horrendously overassessed, spent a costly year proving them wrong, and have been under their microscope since then.

Operating legally is tedious, burdensome and expensive. It incurs all sorts of taxes and fees from several government agencies. I have been audited several times and called upon suddenly to prove that I have paid this and that tax by bringing in receipts. The ferocity of several revenue agents leads me to believe that they receive a commission. Many taxpayers view the Inland Revenue Department as intimi-dating, oppressive, spiteful, insular, draconian and Napoleonic. It hangs over us like the sword of Damocles and preys repeatedly on legitimate businesses. This has led many people to dodge the 'tax net' indefinitely. The Inland Revenue Department refuses to change its adversarial approach to taxpayers and the entire country is suffering because of it.

Payment reminder

In the recent past, I have been subjected to several mini-audits and one immensely probing audit, yet, to my surprise, I (like innumerable others) received a so-called, 'payment reminder' in the mail. It was dated June 23, but arrived on July 17, (a significant delay). It stated: "Our records show that you have failed to make payment within the time required by law on account of your tax liability for the period herein stated. Under the powers of the Tax Collection Act, you are hereby required to remit these sums to your local collectorate within 15 days of receiving this reminder. NOTE: Continued failure to make or pay tax will result in legal action being taken against you."

The dates of my alleged inadvertent transgression were quoted as 2001 and 2002 (long before my intense audit). The total sum owed (including interest) was $1,524.68. I have come to understand that the Inland Revenue Department has acquired the technical means to go back in ancient history and review the records in order to seek out those that might have underpaid taxes, made an error or (like my company - I suspect) narrowly missed the payment date of some tax or the other. That sum is then taken and, "interest at 40 per cent per annum continues to accrue daily on outstanding tax, audit and surcharge until date of payment." The victim is then informed of the error with the added charges and threatened with legal action.

Unfair tactic

I was lucky; my sum owed was small (this time), but, many people are required to pay several hundred thousand dollars or even more. Why make us liable for monies and punitive interest stretching so far back? This sort of unfair tactic frustrates current contributors, encourages corruption and scares off prospective taxpayers. The Government is obviously scrounging for revenue and overtaxing (wringing dry) the very same overburdened contributors repeatedly. The ripple effect of this latest campaign will be felt throughoutthe economy. The funds to pay this unfair back tax will be passed on to the consumers eventually and only serve to fuel even more inflation; this, from an administration promising prosperity (among other things). This is no way to treat our people. The Inland Revenue Department is sabotaging itself and, unfortunately for all of us, it will never learn.