Proposed amendment to Customs Act puts onus on importers
November 03, 2006
Importers suspected of smuggling or tax-dodging through under-invoicing of goods will be regarded as guilty until proven innocent, under new legislation being sought by the government.
Davies. amendment not unique
Finance Minister Dr Omar Davies on Tuesday opened debate on a bill to amend the Customs Act in the House of Representatives, but the submissions were cut short and postponed to next week after concerns were raised by members of the Opposition about some of the provisions in the proposed bill.
At that time, the two sides hope to hammer out a compromise that will increase the legislative authority of the customs in dealing with understating of import duties.
In piloting the controversial Bill, Davies said he was seeking to extend measures to strengthen the evidence gathering capabilities of the Customs Department in relation to smuggling, under invoicing and under-valuation of goods.
He said that over the years, some importers had retained their original supplier invoices for their income tax purposes, but would submit another invoice to Customs, understating the value of the goods or the volume or number of the items imported.
The finance minister said the problem was worsened in instances where Customs discovered the original invoices and sought through the courts to require the presence of the maker of the documents to give evidence to this effect.
Two inherent difficulties arose in such circumstances, Davies told the House. "The first is that sometimes the maker of the original invoice does not wish to alienate his or her client and finds whatever reasons not to respond to the invitation to testify.
"The second one, which is one with which we are very familiar, is that even in instances where the original maker of the invoices comes to Jamaica, the case is postponed for a variety of reasons, not the least of which the importer is ill or his counsel is ill, and after a time it becomes counterproductive and the original supplier of the invoice chooses not to testify."...
Author: Observer Peporter
Source: Jamaica Observer
