By Garwin Davis, Assistant News EditorPAUL HOO, president and chief executive officer of Supreme Ventures Ltd., a lottery company, caused a stir yesterday during a hearing of the House Parliamentary Committee on Tax Measures when he proposed advancing the Government $500 million in tax revenues.
Mr. Hoo is, however, tying a few caveats to his proposal.
"The Government must be willing to rescind its 15 per cent taxation on punters' lottery winnings," he said. "Also, there should be no changes in taxes during the life of our current eight-year contract. In addition, a task force has to be put in place to stem the flow of illegal bookmaking we have been losing an estimated $10 million to $15 million daily as a result."
Dr. Omar Davies, Minister of Finance and Planning, has signed a provisional tax order for the imposition of a 15 per cent tax on lottery winnings. The move has not only angered sector players, but represents an about-face on the part of Government, which had initially planned to impose a 25 per cent GCT on all lottery ticket sales.
Mr. Hoo made it clear that while his company recognised and respected the Government's right and necessity to raise taxes, "it is our belief that additional taxation on the players would be both detrimental and counter-productive to the lottery industry."
He added that taxation on winnings would also derail plans for a further investment of US$20 million by his company. Supreme Ventures last year paid over $1.4 billion in lottery taxes and levies to the Government.
Dr. Paul Robertson, committee member, then intervened. "Have you done a poll or a study to support these figures?" he asked. "No," Mr. Hoo replied.
"These are educated guesses based on our experience." Dr. Robertson pressed: "Could you guarantee to the minister that if you were to have your way, money in bankable form would be deposited to protect the Government?"
Mr. Hoo then dropped his bombshell. "Without having consulted with my directors we would be willing to deposit in bankable form $500 million if the Government were to rescind on this 15 per cent tax. Without this tax, we are confident that we could adequately expand and realise the Government even more revenues at least a billion dollars more annually."
Dr. Omar Davies, Finance Minister and chairman of the committee, in proclaiming that he had never before seen or heard of a proposal like that, asked: "Are you so confident in your own projections that you are willing to pay an advance to a Government which is non-refundable? I would love to see that proposal in writing."
Mr. Hoo: This is the nature of business if our projections are flawed, then we lose. We, however, have every confidence in our operations.
Dr. Davies: We wait anxiously to see this proposal in writing.
