By Tyrone Reid , Staff ReporterFOR THE past six years, more than $1 billion has escaped the grasp of the Inland Revenue Department (IRD) in the form of uncollected property tax.
Norma Kerr-Clarke, Commissioner of the Inland Revenue Department, told The Gleaner that because of delinquent property owners, roughly $1.2 billion in property tax is outstanding.
Mrs. Kerr-Clarke said one of the major delinquent groups is absentee owners, who are individuals who own property on the island but live overseas. Also, there are those who reside here but cannot be found.
"Some of it we are unable to collect because we cannot find some of the people to collect from them, as well as, we can't find them to serve the summons to them even though they are around," explained Mrs. Kerr-Clarke. She added that while the homes of some property owners have been found, finding the persons to serve the summons is the hard part.
Also, the law is seemingly a shackle to the department's attempts to recover what is owed to them. Mrs. Kerr-Clarke told The Gleaner that under the Property Tax Act, the Inland Revenue Department has to be able to prove that property owners have received their tax notices and have not complied before they can drag them before the courts.
"Because the envelope is easily identifiable the persons leave them at the post office and they come back to us and under the Property Tax Act they have to receive their assessment in order for us to take legal action," she explained.
The department's inability to collect their due is further compounded by property owners who change their addresses without notifying the Inland Revenue Department. Also, Mrs. Kerr-Clarke explained that because some of the lots are empty, there is nothing for the department to seize in an attempt to recover what is owed.
Mrs. Kerr-Clarke highlighted that delinquent persons should know that not paying their property taxes cripple the efforts of the Local Government bodies. "Property tax goes to the Local Government operations such as street lighting, solid waste management, funding the fire services as well as the maintenance of parochial roads, so not paying reduces the funding to Local Government to carry out those functions effectively," she said.
