Taxing Tips

Let start by first saying that I understand the need for tips to have some sort of tax regulation, but you have to ask, how do they expect to enforce and monitor the collection of taxes on tips? Are they going to have inspectors visiting every bar and restaurant? Riiiiiight! Will the 'tips' our officials and politicians get also be subject to tax and inspection??

Seems to me to be just another lame and burocratic attempt to raise a few pennies when really the overall tax system needs a complete overhaul and rebuild. Feel free to share your thoughts below.

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Daily Herald Editorial - Taxing the Tips - 14th September 2007

Wages tax to be charged on tips - 14th September 2007

Fuzz Buzz's blog | add new comment

Submitted by Fuzz Buzz on Sun, 2007-09-16 08:31.

taxing tips
Anonymous (not verified) | Mon, 2007-09-17 03:00

Tips and gratuities in the Bar and Restaurant sector have been taxed for at least 15 years on SXM. The only "thing" new is that the Minister of Finance established a rate which government thinks is fair. 10%. This is controlled through tax audits. Unfortunately not all bars and restaurants get audited. A good % does.
I just feel bad for the bars that cater to the local market instead of the tourist market. They will have hard time convincing the Tax Inspector that their staff does not get 10% in gratuities. Also bars frequented by European tourists, mainly dutch and french, will have a similar problem.

Tax on tips
Anonymous (not verified) | Tue, 2007-09-18 18:38

Guys, the tax office on sxm has been taxing tips etc for years already, this is nothing new. Basically the tax office places the burden of proof on the tax payer to prove other than they claim.

For example the tax office has been forcing for instance the restaurants to declare the tips by estimating that tips represent 25-30% of the restaurant income (which it isnt) and then have the tax payer prove otherwise, its actually kind of criminal on the part of the tax office. But if the tax payer didnt file anyway, they are basically screwed.

Another area where the tax office is going hog wild, is for instance the turnover tax law interpretation. Namely they are trying to get companies which are currently exempt (shipping / airline industry etc) to pay by stating stuff like, if they are not physically in these areas then they are not exempt from the TOT, this is also criminal cause we have no designated free zones like Curacao.

The above and other examples known to me, all proves that the tax guys in CUR and SXM are trying to find ways to shaft the tax payer and usually win cause the average tax payer cannot afford to fight the "goverment" and give up real quick and agree to payment plans they cant live up to!

The whole government budget is based on faulty information and worse, they all know it!

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