Dear Editor,
I write to express my views on the recent crackdown by the Inland Revenue Division (IRD) on companies failing to pay taxes. While I commend the IRD for taking this long-overdue action, I believe there are serious areas that require immediate attention to ensure fairness and effectiveness in revenue collection.
Firstly, it is evident that most companies evading taxes are local Solomon Islanders. However, one significant leakage that the IRD seems to have overlooked is the financial practices of Chinese businesses. There have been numerous eyewitness accounts of Chinese business owners keeping large sums of money at their homes instead of in banks. This raises serious concerns about tax evasion and underreporting of income. The IRD must design a strong mechanism to monitor all businesses, regardless of ownership, to ensure compliance with tax laws.
Secondly, I strongly believe that many Chinese firms have undervalued their businesses to reduce their tax liabilities. To address this, the IRD must enforce stricter regulations requiring all businesses to provide accurate financial reports and status updates. Companies that fail to comply should face heavy penalties or legal action. Weak enforcement has been a major contributing factor to the current shortcomings in revenue collection, and this must be addressed urgently.
Thirdly, the IRD must review the tax system, particularly for extractive industries like mining. There are reports of mining companies winding down operations without paying their fair share of taxes. This is unacceptable, and the IRD must ensure that taxes are collected from these industries before they cease operations. Additionally, the practice of granting tax exemptions to foreign companies should be stopped immediately. Such exemptions not only deprive the government of much-needed revenue but also create an uneven playing field for local businesses.
In conclusion, while the IRD’s crackdown is a step in the right direction, more comprehensive measures are needed to ensure fair and effective tax collection. By addressing these issues, the government can significantly improve revenue collection and promote economic fairness for all Solomon Islanders.
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-A Concerned Citizen
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