On Friday, the One Bermuda Alliance asked two Parliamentary Questions relating to the Corporate Income (CIT).
The first question was how much estimated CIT income would come from the top 10 and top 25 largest CIT payers. The second question was what criteria or methodologies would be used to allocate the CIT income between the consolidated fund (for Government spending) and the Tax Reserve Fund (in case tax refunds need to be paid back).
The Premier said it was “unknowable” and “we will not know” how much CIT money might come from the top payers, due to the nature of the OECD information used for the Government projections. It is hard to understand how the Government can be confident in its CIT projections and yet somehow not be able to answer the question, how much tax will come from the top 10 or top 25 largest payers. This is important to have a view on, because if a large amount of tax comes from a small number of CIT payers, Bermuda’s CIT income will be very sensitive to these taxpayers coming or going.
Remember, this Government boasts of a so-called $19.7m “surplus” last year, while actually spending $54m of borrowed money, and $134m of borrowed money over the past two years. That’s we don’t take everything the Government says at face value, and why we continue to challenge their statements.
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