Premier suggests this is conjecture over ‘sensitive matters’; Shadow Finance Minister says public are ‘entitled to know’
The stability and dependability of the Corporate Income Tax could be affected by how many companies are paying the lion’s share.
This is the opinion of Dr Douglas De Couto, Shadow Finance Minister.
He told Bermuda Broadcasting, “Let’s say, for example, over half the tax comes from 3 or 4 companies… we’ll have to tread very carefully to keep those companies happy, to make sure they want to stay here.”
“That would mean a whole different approach to the situation than if, say, 50% of the tax is paid by 20 to 30 different companies. It will be much more robust situation…”
Dr De Couto was chasing answers in the House of Assembly on Friday, as he requested the aggregate amount of the first installment CIT payments for the largest 5, 10, 25, and 50 CIT payers.
David Burt, Premier and Finance Minister, said publishing those figures would be contrary to the public interest, but said he would endeavour to supply approximate percentage figures at a later date.
Bermuda Broadcasting asked the Premier about his response to Dr De Couto, the idea that a large percentage of the CIT is being paid by a relatively small group of companies, and whether that presents any instability.
Premier Burt responded, “I think we’re here engaged in conjecture and speculation… The answer I gave was that it was not in the public interest to disclose at this time.”
“We’re still working. There’s very sensitive matters. I’m traveling to Europe next week to meet with the OECD. There’s a number of various things that are happening… and we will have appropriate oversight mechanisms through the law at a later point in time.”
Speaking to Bermuda Broadcasting, Dr De Couto acknowledged that there is sensitivity, and Government is working very carefully to navigate this matter. However, he added that his written question had been with Government for more than three and a half weeks, and they could have communicated to request a different approach
“My question was carefully posed to not be identifying for any companies” Dr De Couto said.
“One of the questions we have that is very important to understand how we plan is – how much of the tax comes from the top few companies?”
“The Premier has offered to give us some of this information on a percentage basis… I respect that, and I look forward to receiving that information from him and his team.”
Dr De Couto also added that “due to all the promises that the government has made about the CIT money, this is perhaps one of the most important issues facing Bermuda’s future financial stability. And I think that the public… are entitled and anxious to know as much information as possible.”
