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Jeff Cumberbatch - New Chairman of the FTC
Jeff Cumberbatch – New Chairman of the FTC

A combination of factors informed the relative brevity of todayโ€™s column. My university duties, as is usually the case at this time of the year, precluded any undertaking [โ€ฆ]More of the depth of research I would ordinarily require to produce a substantially provocative effort. important, the commercial and domestic significance of the last Sunday before Christmas Day on Friday scarcely affords the ordinary reader (to the extent that any of mine are) the leisure happily to digest a lengthy disquisition on a topic that is likely, as these things go here, to recur for public discussion sometime in the next year in any event.

So there will be nothing today on why we simplistically continue to insist that itโ€™s either โ€œlicksโ€ as a child or Doddโ€™s as an adult, in spite of cogent evidence to the contrary; why we still consider that a resumption of hanging will lead inexorably to a reduction in the incidence of crime generally and not just of murders; and why we seek to blame a hapless West Indies Cricket Board for the shabby performances of the current regional cricket team that has its name only in common with those great elevens of the past.

The taxman cometh

The proposal (I do not believe it has gone beyond that) to require of some professionals a tax clearance certificate from the Barbados Revenue Agency before they are allowed to practice lawfully as registered entities has unsurprisingly attracted the ire of those organizations that represent the medical practitioners and the attorneys at law respectively. The force of their resistance appears to have had some effect. I recall reading earlier last week that officialdom was at least reconsidering the matter.

Yet there appears to be some disconnect between this apparent struggle of contending opinions between these associations and the state and the populist view. For starters, leaders in both sections of the daily printed press in recent times have endorsed the view that this use of the tax clearance certificate would appear to be an appropriately efficacious means of ensuring tax collection equity at one level. A local vox pop, it may be argued, would also overwhelmingly endorse this view.

Interestingly enough, the arguments that have emanated from the two representative bodies are not to be credited with presenting a particularly persuasive case. While the medical professionals appear to be holding their cards close to their chest and attributing any disclosure of their intended strategy to an unauthorized leak, the Bar Association, in a published response in another section of the local press on Friday last, appears to argue that the proposed measure threatens the constitutional rights of its members.

What makes this argument even more intriguing is that the constitutional right it alleges to be under threat is that of the right to work, an entitlement that, contrary to assertion, does not currently find textual expression in the local charter of constitutional guarantees.

The content of a right to work, itself an attractive proposition in theory, has engaged the minds of constitutional and labour law scholars for many years. The right admittedly does exist in the sphere of international convention. However, while it is expressly guaranteed in the Guyana Constitution 1980[along with the correlative duty], and in the Dominica Protection of Employment Act 1977; as stated above, we make no similar provision, although we are state parties to the Universal Declaration of Human Rights and the International Covenant of Economic Social and Cultural Rights, both of which recognize the existence of the right.

Whatever its content โ€“and it certainly does not mean that an employee cannot be lawfully dismissed-, I am not so sure that it may be prayed in aid in this specific instance. The US regards it as the right to work at any place of employment without being compelled to join a union as a condition of that employment; Dominica appears to consider it as merely the right to work in oneโ€™s existing employment until lawfully dismissed; Guyana purports to view its guarantee as a state responsibility by means of โ€œsocialist planning, development and management of the economyโ€, inter alia; and the UN delineates it as a synthesis of the freedom to choose employment, the entitlement to just and favourable conditions of work and to unemployment protection.

The local Bar Associationโ€™s case would appear to be based rather on the official proposal being in restraint of trade. In order to negative this, it will have to be shown that such restraint is unreasonable and not in the public interestโ€ฆand, as Hamlet did not say, โ€œtherein lies the rubโ€.


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71 responses to “The Jeff Cumberbatch Column – An Unreasonable Restraint?”

  1. Well Well & Consequences Avatar
    Well Well & Consequences

    All of that from those two entities to avoid paying taxes. Something they cannot do anywhere else in the world. Do they not realize that the tax clearance certificate also gives them a degree of protection. I am now wondering if any of these professionals, who are resisting so vigorously, have ever even paid any taxes from the beginning of their practices, some who have bรจen practicing for over 30 years, which would explain why producing clearanc certificates at this stage frightens and has nothing to do with violating any of their civil rights, including the right to work.

    Paying back taxes going back 1-3 decades is frightening.


  2. The union is setup to look after the needs of its constituents. If there is a loud enough voice on the floor the executive is obligated to pursue the grievance on the aggrieved parties behave. Whether the defense is cogent or not may therefore not be relevant.


  3. There are times that good comes out of bad. I say that to say that while I abhor the failed destructive policy of the Government to tax its way out of our economic difficulties as a result of bad management decisions according to Minister David Estwick; it is time that some system is put in place to make these professional persons particularly those who display a vulturistic approach to the public with regard to the exorbitant fees charged in the practice of their profession to pay their fair share of taxes.

  4. Caswell Franklyn Avatar

    I am not seeking to justify tax evasion by these professionals but it seems that the Government has come up with another unworkable scheme to gorge on people’s income, without thinking the proposal through. Yes, they might inconvenience the doctors and lawyers who must have some sort of practicing certificate. What about the other professionals who might just continue working without bothering to register or pay taxes. This proposal could very well drive them underground.

    The Government will end up a penny wise and a pound foolish, just like the case of the tipping fee for garbage haulers. They now have to spend millions to clean up illegal dump sites, in order to fund Bizzy. Millions more than the country has benefited I might add.

    All I am asking is that these people in government to do is think first before they rush off their hair-brain schemes.


  5. @Caswell

    To be clear you have not absolved the technocrats read public workers.


  6. but on the other hand even though the relevance of the issue bodes well for a greater need or cause for resolution, is it fair and just for govt to deny or interfere with a person livelihood without pursuing alternatives avenues as remedy . i believe that the courts would demand of the govt sufficient and clear evidence that govt pursued alternatives methods of collection which are less burdensome or cumbersome for the professionals before giving the govt full clearance for the collection of monies as directed and pursued on the path on which they have arrived for monies owed to them
    While on the other hand the bar association response may be frivolous as the govt does not stop the lawyers from seeking employment in other areas
    Needless to say the “butting” of heads is a simply power play at best which makes for good theatrics


  7. @Jeff

    Are the existing laws dealing with the collection of taxes inadequate?

  8. Caswell Franklyn Avatar

    David

    What technocrats? The job of the technocrat is to advise the politicians. Unfortunately, we have a public service that is manned (mostly womaned) at the top by a set of incompetents that were installed by the same politicians. They just sit around and wait for instructions from the politicians. The politician comes up with some silly idea and the technocrat is either too dumb or to incompetent to set the political Lord and master strait.

    Vincent

    The laws are more than adequate but the persons put in place to administer them is the problem. Political appointees even if they pretend to go through an interviewing process are the root of the problem not the law.


  9. @Caswell Franklyn December 20, 2015 at 8:27 AM #

    Thanks……..Implementation/administration defict disorder,it continously boils down to this…….sad

  10. Jeff Cumberbatch Avatar

    VH@7.56 am,

    The existing laws are indeed adequate.The enforcement is not however. To tell the truth, this may not be as easy as it might appear in respect of the sole trader, but less so in respect of the traditional professional. The professional engineers, accountants, doctors and lawyers may easily be discovered by a perusal of their respective registers, but either this is not done by the authorities or their criminal failure to file is connived at. There is, however, no register of hairdressers or food van vendors to be checked.


  11. This approach is yet another simplistic, idiotic attempt by a third class administration to deal with matters that are way over their paygrade (deserved pay grade, not actual).

    Caswell is exactly right.
    So when January comes and all the damn doctors refuse to apply for a tax clearance what the hell will Stinkliar say to the hundreds of sick citizens waiting around at the hospital, polyclinic and doctor’s offices?

    BASIC RULE OF COMMON SENSE.
    Never pull out a .22 at a man holding an AK47.

    They ALREADY tried this shiite with the engineers /architects …. raising registration fees many times. The result is that MOST of these people just did not bother to register, so that in a firm of 12 engineers, only one is registered …and that one signs all documents.

    This is a third class, penny wise, pound foolish administration of low-class retards who can’t even seem to learn from their recent mistakes.

    How hard can it be to audit 20% of ALL professionals every year?
    How hard to move to penalise those who are found to be delinquent?

    …the problem is that when they start auditing people, their esteemed friends and albino associates may become entangled in the audits….and we can’t have THAT…can we?


  12. To support Caswell’s point, take a look at our collection effort at the NIS through the years and political parties…abysmal. We are witnessing the growth of a monster. Did not mention what is happening with VAT and Courts?


  13. ‘Penny wise and pound foolish” a bunch of easy sounding words there is also the principle effect of getting a pound of flesh from the professionals which carries more weight in the long term remittance as the professionals losses thousands of dollars daily from their business and in return have no alternative but to “penny up” what is due to govt rather than to closed their doors on their business practices
    Either they do or die


  14. @Jeff Cumberbatch December 20, 2015 at 8:55 AM #

    I would have thought that if it is not easily enforced,it can no longer be adequate and a new one that can be enforced should be brought to the table or the law scrapped.

    Can this new law that has been put on the table and then withdrawn be adequate?

  15. Jeff Cumberbatch Avatar

    Mr Haynes, one of the inherent defects in any tax collection system is that there always will be some who slip through the net. The legal solution may not be with the tax law itself, but rather with the “narrowing” of the holes in the net so that fewer persons slip through. The tax clearance certificate is such a strategy…causing hairdressers, mechanics and food vendors to register with a collective body may be another


  16. @BU family

    Click the link and ‘like’ for a good cause, this youngster Corey Layne is a doer.

    https://www.wishpond.com/lp/1265846/entries/69796622

    O


  17. @Jeff Cumberbatch December 20, 2015 at 9:23 AM #

    Thanks….Was I correct in hearing some time ago that VAT was to be the answer for all taxes in Bim?


  18. I am writing from my experience providing accounting services for owners of public transport vehicles, including hired vehicles, mini buses, tour buses and all categories of taxis.

    For years, owners of the above mentioned categories of vehicles have been adhering to the rules of filing, where applicable, income or corporation tax returns (and paying the required taxes), as well as making the appropriate contributions to the National Insurance Scheme.

    Before the owners of these public transport vehicles can renew road taxes, they are required to submit to the Barbados Licensing Authority:

    1) A tax clearance certificate from the BRA, which would indicate that the owner has not been delinquent in filing income/corporation tax returns.

    2) A NIS clearance certificate from the National Insurance office to verify the owner is current relative to NIS contribution.

    What makes the case of an individual whose โ€œprofessionโ€ is doctor, lawyer, accountant or engineer much more DIFFERENT, UNIQUE or SPECIAL from an individual whose โ€œprofessionโ€ is hired car business owner, mini bus operator or taxi operator?

    I am not a lawyer, but if the โ€œBar Association, in a published response in another section of the local press on Friday last, appears to argue that the proposed measure threatens the constitutional rights of its members,โ€ surely Morris Lee, for example, as president of the Association of Private Transport Operators (APTO), on the same basis should be able to argue similarly for members of his association.


  19. @Jeff
    What makes this argument even more intriguing is that the constitutional right it alleges to be under threat is that of the right to work, an entitlement that, contrary to assertion, does not currently find textual expression in the local charter of constitutional guarantees
    +++++++++++++++++++
    So in effect lawyers are ignorant of the lawโ€ฆ tut tutโ€ฆ who are you folks graduating? When I was in High School there was an A level course called โ€œBritish Constitutionโ€ perhaps there should be a first year law course applicable to Bajan students called โ€œBarbados Constitutionโ€.

    Your other point about right to work legislation: This has been used in the USA to break the backs of Unions and many US States with Republicans in power at the State level have this legislation and companies move their operations to these States at the expense of others where they can depress wages and benefits for their workers.

    Tax avoidance is a problem everywhere and people will try all kinds of methods to escape paying taxes those with money and good accountants usually find a way around it for a while but eventually it catches up with them. When they are caught in countries like Canada most settle quietly out of the public limelight with the CRA but long term evasion can be devastating to a countryโ€™s economy. Everyone knows that there is a serious leakage of tax revenue in Barbados but anytime there is an effort to corral the horses someoneโ€™s ox ends up being gored. We have seen what this does to countries e.g. Greece but people want to milk the cow but no one wants to feed it (another animal metaphor) and the folks who are objecting strenuously are the folks with influence and power so this will be another exercise of Govโ€™t caving in to the whims of the few at the expense of the many.

    Bajans in the diaspora follow events in Barbados closer than many may think and when there are appeals for them to invest in Barbados they are saying why should we invest in a country where tax avoidance is rife? If Bajans are saying this what about those whose โ€œnavel stringsโ€ are buried elsewhere?


  20. The doctors, lawyers et al define the traditional players in the economy compared to the ‘others’ who are perceived as part of the underground economy. It is always about what influence decisions. Why are lawyers (no disrespect to Deputy Dean Cumberbatch) revered to such a degree in our setup and by extension the political class? It is a head thing.


  21. ac December 20, 2015 at 9:14 AM #

    โ€˜Penny wise and pound foolishโ€ a bunch of easy sounding words there is also the principle effect of getting a pound of flesh from the professionals which carries more weight in the long term remittance as the professionals losses thousands of dollars daily from their business and in return have no alternative but to โ€œpenny upโ€ what is due to govt rather than to closed their doors on their business practices. Either they do or die.

    Interesting comments, AC. But it caused to think about these professionals and income. Letโ€™s look at a lawyer and tax clearance certificates, for example.

    Lawyers obviously earn more than $60,000 per annum and would most likely have registered with the VAT division. Supposed a lawyer withheld a clientโ€™s funds for a number of years and deposited those funds in his business account, would that lawyer have categorized those funds as income and filed VAT returns accordingly or would he have had deposited the funds in a personal account and earned income by the way of interest?

    The tax clearance certificate would eliminate such scenarios.

    You are close to the action, perhaps you can ask him for a response to my hypothetical question.


  22. @Sargeant

    One has the distinct impression the CRA is to be feared in Canada, not so BRA. One simply has to make a phone call.

    The doctors, lawyers et al define the traditional players in the economy > compared to the ‘others’ who are perceived as part of the underground > economy. It is always about what influence decisions. Why are lawyers (no > disrespect to Deputy Dean Cumberbatch) revered to such a degree in our > setup and by extension the political class? It is a head thing. > > >

  23. Jeff Cumberbatch Avatar

    “…anytime there is an effort to corral the horses someoneโ€™s ox ends up being gored”. What a wonderful turn of phrase, Mr Sargeant. Here are some entertaining others-

    http://www.jimcarlton.com/my_favorite_mixed_metaphors.htm

    I was indeed surprised to see the claim to a constitutional right to work coming from the BBA, but they would not have been told of its existence at Cave Hill. Remember they leave us after Year Three with two more years to go!


  24. Jeff does the Pontius Pilate thing ๐Ÿค“


  25. Good question Art but a hypothetical does not count as evidence and “therein lies the rub “


  26. @Artax

    Do you watch the TV Show Jeopardy?

    For $2,000, what is a yard fowl?


  27. The lawyers constitutional right to work is not inhibited However the BA can argued that within the constitution a right to pursuit of liberty and justice is a guaranteed right which forbids govt from enforcing actions on an individual right to pursue
    The question however even though contrary to human rights still falls under the same category which might however give legal right in govt favor weighing on actual facts or evidence being shown that legitimate collection methods were continuously ignored by the professionals


  28. David December 20, 2015 at 10:03 AM #

    For $2,000, what is a yard fowl?

    AC!!!


  29. Art i do watch jeopardy but the answer is given and the contestant provides the question
    Here is my answer ‘ a lost soul”


  30. ammm i a going to act upon a constitutional right with good reason ‘Freedom of assembly ” in a place of worship
    Will pray for you David


  31. Thanks ac, here is a theme for your prayer- honesty is the best policy whether in thought, written word or deed.


  32. I just love the mood on BU this morning.Season’s Greetings to all!


  33. Another example of the quality of the management of the country (all stakeholders) is the report on page 11 in today’s Sun. A radar to monitor the South/East coastline for criminal activity lies rusting next to Ragged Point lighthouse. Wonder why our coastline is so porous and who benefits?

    Help dear lord!


  34. I recall some months back there was much discussion regarding the excellent political maneuvers of Greek PM Tsipraas…well actually the discussion here on BU was the lack of tax revenue collection of the Greek government an act which propelled the country to the Tsipras fancy footwork. I also recall comparison to our little island’s situation…here we are again den.

    Jeff’s said it clearly: “The professional engineers, accountants, doctors and lawyers may easily be discovered by a perusal of their respective registers, but either this is not done by the authorities or their criminal failure to file is CONNIVED (my emphasis) at.”

    There were reports of Greek professionals and others there having beautiful pools (as seen from the air) and other luxury accommodation but paying little or no tax on meager reported revenue or not reporting. Just like BIM no doubt.

    What is it the BU folks say often: we like it so. These Greek comparisons don’t bode well for BIM…none of dem.

    BTW Bushie, who blinks first: A doctor who is shamed for tax evasion, can’t have any of his Insurance invoices processed, can’t make a living and thus acts to regain his income or these hundreds of sick Bajans left stranded.

    You are suggesting that there quite many tax evaders in the medical ranks to cause that scenario.

    What if Artax’s clients (all of dem) pull their vehicles off the road for a few days every week? That’s a lot more work sick leave, lateness and angst to disrupt the economy, I believe.


  35. David December 20, 2015 at 10:33 AM #

    Thanks ac, here is a theme for your prayer- honesty is the best policy whether in thought, written word or deed.

    ………………………………………………………………………………………………………………………………………

    thanks David i would submit your sentiments on the pray list on your behalf


  36. @Jeff C

    Thanks

    I look forward to your columns they are very informative


  37. @DIW
    BTW Bushie, who blinks first: A doctor who is shamed for tax evasion, canโ€™t have any of his Insurance invoices processed, canโ€™t make a living and thus acts to regain his income or these hundreds of sick Bajans left stranded
    ++++++++++

    Maybe those โ€œsick Bajansโ€ will return to an old fashioned remedy- Bush Tea


  38. @ DIW
    Who do you think will blink first?
    The ones with the deeper pockets?
    Can you even imagine how deep the pockets of a lawyer (for example) is who has NEVER paid taxes; charges $750,000 to read a shiite contract at the Cave; …AND just happens to have access to a client account of $5M which in available for use at his discretion ….while creaming off the bank interest?

    Doctors are the same… you walk in with a slight muscle strain (from trying a bit too hard the night before..) and is immediately directed to multiple extensive (and expensive) tests and procedures to ‘rule out’ various maladies…

    THESE PEOPLE HAVE MONEY Dee…
    Artax’s clients are ‘poor-boys’ with brek-down vans and hand-to-mouth employees….

    Why does our government ALWAYS look for the difficult ‘solutions’ and ignore the OBVIOUS ones….?

    LOCK UP SOME OF THE DAMN CROOKS NUH!!!
    Tax clearance Bushies’ donkey….


  39. @ Sargeant
    You left bout here too long hear?
    Which Bajan doctor is ‘shamed’ for tax evasion?
    Skippa, NOT paying taxes is a longstanding tradition for Bajan doctors.
    …and don’t talk bout lawyers…. shiite man… they don’t even pay clients THEIR OWN moneys that are due them.


  40. When we discuss doctors be sure to include the diagnostic clinics – majority owned by Harris. BU is convinced there is a nice scam going in between some medical players and their involvement in manufacturing business fir the clinics.


  41. Doctors (Dentists et al) in Barbados, the high flying ones, maintain two sets of ‘books’.

    When we discuss doctors be sure to include the diagnostic clinics > – majority owned by Harris. BU is convinced there is a nice scam going in > between some medical players and their involvement in manufacturing > business fir the clinics. > >


  42. An wunna elect politicians and political leaders from among these “professionals”.

    Merry Christmas and happy New Year to BU bloggers.

  43. Well Well & Consequences Avatar
    Well Well & Consequences

    Same to you Hants, the scams against the real taxpayers are worse than that, as David and the Bushman have alluded, too many people know and are pretending they don’t on the island, maybe hoping to get a piece of the pie.

    If government would stop playing pansy, sissy games with the culprits and lock them up instead of engaging in the same illegal games, they would be able to collect more taxes, nothing else will work and government knows it. They just think no one else knows.


  44. It is a certainty that with such powerful ministers with St Philip connections as PM Stuart,Lashley and AG Brathwaite,this minor setback in monitoring the drug trade will be fixed in short order.


  45. Hants December 20, 2015 at 1:15 PM #

    An wunna elect politicians and political leaders from among these โ€œprofessionalsโ€.

    Politicians are elected to impose laws; not to follow them.


  46. @ David et al.
    For years and years Medical technologists, Nurses, and other professionals have been paying registration fees, payable every January, before they can work at their professions. In Canada and the U.S. All Barbers hair dressers and other of the same types of professionals have to pay registration/licence fees, and are required to have their certificates with the annual stamp of payment prominently displayed in their shop, subject to fines for non compliance, when the inspector comes around. What is the matter with these “privileged professionals. Why do they have their academic certificates displayed in their offices/ Just to show they are qualified? They should not be allowed to practice if the tax payment evidence (certificate, or stamp is not prominently displayed. If a physician (surgeon) can charge fifteen thousand dollars to perform an operation, shouldn’t he be willing to pay some of that in taxes?


  47. Alvin Cummins December 21, 2015 at 8:43 PM #
    DID NOT DAVID THOMPSON RAISE THE REGISTRATION FEE FOR DOCTORS IN 2008? {THAT IS FOR GP’S}
    IF NOT PAID BY JAN 31ST IS NOT THIS FEE DOUBLED

  48. millertheanunnaki Avatar

    @ Alvin Cummins December 21, 2015 at 8:43 PM
    โ€œIf a physician (surgeon) can charge fifteen thousand dollars to perform an operation, shouldnโ€™t he be willing to pay some of that in taxes?โ€

    If , after covering his or her expenses, Yes, of course!

    So tell us, AC the one-sided fellow, would you also agree that the $3.3 million Leroy Parris received as a gratuity from CLICO should also be subject to tax instead of being laundered via the David Thompy washing machine?
    The tax that should have ended up in the Treasury ended up in the coffers of George Street to fund the 2013 damn lying propaganda campaign of No Privatization, No layoffs under the deceitful lying pimps.


  49. I guess Canada is off the list of countries that Bush Tea plans to visit. The Guvment plan to impose a ban on spanking.

    BTW if DIW is lives here (as BT keeps writing) he may want to reconsider his residency.

    http://www.theglobeandmail.com/news/politics/liberals-agree-to-revoke-spanking-law-in-response-to-trc-call/article27890875/


  50. Was wondering where to place this comment and thought I would place it here as Jeff seems to attract the heavy hitters…..

    How do we recognize a historic deed? When Rosa Parks refuse to sit at the back of the bus, was the historical significance of the moment recognized immediately or did it take a few days before the symbolism of her courageous act became apparent to all?

    Have we witnessed such a significant act, but it did not register on our radar?
    What about the young Jamaican Miss World e Miss World 24-year-old Sanneta Myrie who chose to wear her hair in dreadlocks. Instead of letting the world define her beauty and going the ‘heavy hair processing route” she chose to appear as her beautiful ‘black self’. What beauty! What courage! What self-confidence! This may be the first act in truly defining and liberating black beauty.

    Did you miss that moment?

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