75 percent of businesses request extensions for audited financial statements

NASSAU, BAHAMAS — A top Inland Revenue official has revealed that approximately 75 percent of businesses required to submit full audited financial statements have requested extensions, with most submissions expected by October or November.

Acting Controller of Inland Revenue, Shunda Strachan, during a weekly press briefing at the Office of the Prime Minister, said: “The majority—about 75 percent—of businesses required extensions. We granted these extensions because this is the first time we are implementing this requirement. We are also aware that businesses have faced challenges in sourcing auditors to complete the work. We expect most of the statements to be submitted by October or November, and we are comfortable with the ones we have received so far. This exercise highlighted the necessity of audits for large businesses, not just for us, but for their benefit as well.”

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) along with the accounting industry had called for a one-year delay for the full audits required for companies with annual turnovers exceeding $5 million. The private sector argues that these audits are unnecessary and excessive, given that the Business Licence fee is based solely on top-line turnover. Large taxpayers—businesses with turnovers above $5 million—are required to produce audited financial statements by an independent accountant as part of their Business Licence filings.

Strachan also noted that the Inland Revenue Department exceeded its revenue target for the first month of the fiscal year, collecting $154 million—$16 million more than the target. Additionally, she mentioned that, in exercising its power of sale for tax arrears on all properties except owner-occupied ones beneficially owned by Bahamians, three properties have been sold.

“So far, we have had three publications, two of which have been completed entirely, and one is still under review. For the first and second power of sale, we have sold three properties and plan to re-advertise about 70 percent of those properties. We were also able to make payment arrangements with some property owners, and I am happy to say they are honoring their commitments. For the properties we are re-advertising, we are doing so to ensure the values we had on those properties reflect the current value, especially for the Family Island properties.”

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