Once you own property in St. Vincent and the Grenadines (SVG), you have to pay taxes to the government each year for the value of your property.
This is standard practice worldwide.
In SVG, the total estimated amount owed to the government is XCD $40 million.
In a March 18 press release, the state-run Agency for Public Information reported that among new measures to be implemented at the local Inland Revenue Department are more stringent compliance protocols for delinquent property tax payers.
“This, as an estimated EC $40 million in outstanding property taxes have yet to be recovered by one of the nation’s largest income earners,” the API stated in the release.
The API said: “In an interview with the API on Monday March 18, 2024, Comptroller of the Inland Revenue Department Kelvin Pompey stated that as a consequence of years of what can be considered deliberate avoidance of the statutory requirement for the payment of annual property taxes by both residential and business clients, the country has been put in a precarious position and outstanding payment of taxes only exacerbates the economic conditions and inhibits potential development opportunities”.
“Pompey said as at “April 1s, 2024 we now will be targeting persons with specific actions, for employees who have properties owing and once they have been contacted and informed, and if we do not see the level of compliance we require, we would be garnishing salaries to recover the outstanding property tax,” according to the API’s press release.
“In addition to these measures, for business property owners receiving rent, rents will be garnished until outstanding property taxes are recovered. The Comptrollers outlined that Directors and Principal officers will be held responsible for outstanding arrears and ultimately there will be a move towards seizing assets to recover outstanding amounts,” the API said.
Pompey said that the measures are necessary “to demonstrate there are consequences to non-compliance for property taxes,” the API said.
In spite of this, the Inland Revenue head said “we hope that through this and other mediums we can get the information out so that we do not have to go to the point of implementing some of these actions but we are serious that something needs to be done,” the API said.
“He further advised Vincentians with outstanding property taxes to contact the Inland Revenue Department to discuss how they may bring their accounts up to date as well as how they may benefit from a possible interest waiver arrangement or a flexible payment option all with the aim to ensure compliance,” the API said in the release.
Source:One News SVG