Walker

Local importers who attempt to cheat the country out of much-needed revenue could be sent to prison if Customs head Danville Walker has his way.

Other private-sector professionals who under-report their earnings to reduce their income tax payments would also find themselves facing criminal action, if the Government accepts the proposals put on the table by Walker.

At a time when the spotlight is being placed on the government for its non-performance in critical areas, Walker wants unscrupulous private-sector leaders who cheat the country of revenue to be also captured under the glare.

"All you do (when you are caught) is to come with the cheque for the difference. The system is designed that you would be a fool not to attempt to under-invoice because the penalty for getting caught is so small. So you have to make the penalty more than the money and let them have a criminal record," he said.

According to Walker, too many persons were walking around the country with their heads held high when they should have criminal records for cheating the country.

Stiffer consequences

"You know how many lawyers and doctors file tax returns that show a wage that is hardly a liveable wage, and if the Government finds out (that they are cheating) the penalties and interest is one thing, but the consequences must be stiffer," argued Walker at a Gleaner Editors' Forum.

"What we need is a situation where when you sign that declaration to Customs or your tax return it is perjury if you knew when you signed it that it wasn't true," Walker argued.

He added: "The declaration you make must carry the weight of perjury. You can't tell the Government anything you want to and if we find out, you say sorry. No country can run like that."

After a little more than one year as the country's point man in Customs, Walker has determined that there is nothing in place to cause importers to want to ensure that they put the correct purchase price on their declarations.

"It is not a criminal offence to under-invoice your imports," Walker noted, as he announced that he had already written to the authorities calling for legislation to make this a crime.

Under-invoicing is a long-running practice in Jamaica, where importers present documents to show the goods cheaper than what was actually paid for them in an effort to reduce the amount paid for import duties.

Walker noted that many years ago the then head of the Revenue Protection Division, Mike Sturridge, made a similar call for stiffer penalties.

System getting better

According to the director of customs, the system is getting better at spotting the imported items that have been under-invoiced but the options open to the Customs Department are not enough to cause people not to attempt the unethical practice.

Walker is getting support from Donovan Wignal, head of the Customs Brokers and Freight Forwarders Association of Jamaica, who agrees that strong action should be taken.

The Government recently announced plans to clamp down on tax cheats with lawyers, doctors and sports personalities among those coming in for special attention.

But those who are caught by the tax net are required to pay penalties and interest without facing prison time.

arthur.hall@gleanerjm.com