Bahamian authorities say they are preparing to execute the power of sale against scores of delinquent accounts whose owners did not take advantage of the payment plans and amnesty periods regarding the payment of property taxes.
Acting director of the Department of Inland Revenue (DIR), Shunda Strachan told reporters that there are an estimated 100 properties set to be auctioned that could net the treasury US$36 million.
She said that when the bidding process for the first 100 properties has ended, the DIR will issue another 100 properties.
“Power of sale is just one thing that we’re going to utilise. It’s in the act. It’s always been in the act, it’s nothing new. It’s just that we didn’t use it before,” said Strachan, adding that the DIR will also sell the liens on properties in order to collect the money that is owed to government.
In addition, the DIR will also continue to garnish the wages of those who owe taxes.
“We’re going to utilise those tools that we have. We’ve got to meet the target. We don’t have a choice, we have to meet the target,” said Strachan noting that over the years, property taxes have accumulated to US$900 million.
The DIR said that various payment plans as well as hiring private collectors have proven futile and that it has issued a power of sale notice concerning 108 accounts in newspapers last Thursday, 77 relating to vacant land or properties without any improvement and 41 commercial properties.
“Previously, we were relying on collection initiatives like calling persons, and writing persons. We’re done with amnesties now, we’ve had so many of those. And we’ve offered persons plans and easy payment plans and the like. But now we move to more aggressive means of collecting because we will make that target. We expect that we will make it.
“There are no payment plans. There are no more amnesties. All of those things have passed, and now we’re seeking to recover the full tax amount that is due on those account,” Strachan said, noting that the government must collect US$195 million in real property taxes to meet its budgetary target for this fiscal year.
The DIR had collected US$95 million by the end of February.
