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TAXATION ISSUES THAT REQUIRE REVIEW
A number of tax measures, recently imposed or are about to be imposed require
careful examination and review to ensure that fairness and equity are guaranteed
to our citizens.
These include the assets tax, the Minimum Business tax and the proposed
amendments to the Property Tax Act.
Assets Tax
The applicable rates for the assets tax were changed in November of 2014 which
appears to be inequitable for holders of assets with a nominal value of $500,000.
This fee has been doubled from $50,000 per annum to $100,000 per annum. On
the face of it, it appears iniquitous to charge such a high rate of 20% of the asset
value when an asset holder of $5M pays the same fee which amounts to a value
of 2% of the asset value.
At the higher end of $50M of asset value where the tax is only $200,000, this is
mere 0.004% of 1% of the value of the asset.
Surely, this scale of fees which was introduced last November is unfair and
iniquitous and victimises the holders of modest assets. Mr Speaker, it victimises
the poor man’s assets.
This requires review to impose a system which is more equitable across the
board.
Minimum Business Tax
The introduction of the Minimum business tax, was done without adequate
public clarification.