November 3, 2006

Cummings still sees VAT issues

Opposition Senator Daniel Cummings believes that persons who entered into contracts before the implementation of the Value Added Tax (VAT) system should each pay half of the monies owed to Government when VAT is due; that is if they were unable to agree upon the liability after negotiations.{{more}}

He was at the time speaking in Parliament last Thursday during debate on Clause Ten of the Transitional Provisions and Consequential Amendments Bill which deals with contracts entered into before the implementation of VAT. According to Cummings this clause will have “very little impact” because of its “open ended nature”. He was concerned that there was no clear method of settlement if there was no agreement on the percentage of liability for each party.

“What happens if there is no agreement?” He said VAT would still have to be paid hence his insistence that there be a clearer resolution method.