JANUARY 28TH, 2017 – FEBRUARY 4TH, 2017
VOLUME 13 - NO. 04
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VILLAS AND CONDOS AVOIDING TAXES by Hayden Boyce Publisher & Editor-in-Chief
O
wners of villas, condominiums and some private homes in Turks and Caicos Islands are making significant sums of money from renting their properties, but many of them are not paying accommodation taxes to Government. The practice has been ongoing for many years and has grown in popularity. Now the Turks and Caicos Hotel and Tourism Association and TCI Chamber of Commerce Chamber are speaking out against it. They raised the matter when their directors recently met recently Premier Hon. Sharlene Cartwright-Robinson and members of the new administration and to address concerns facing the private sector. The two largest private sector organisations said an area of concern raised was the need to protect the “Condo model”. They are calling on Government to regulate the use of condos as private rental properties. “This is a practice which not only undermines the accommodation sector but allows persons to evade paying taxes,” the two organisations said in a press statement. “An area also identified was that of private home owners using platforms like Airbnb, VRBO (Vacation Rentals By Owner) etc. to secure bookings, an emerging business which needs regulating as it can be a revenue source for the administration in the collection of government tax.” A check on the VRBO. com site revealed that there are 951 rental properties in the Turks and Caicos Islands, including 876 on the island of
Premier Hon. Sharlene Cartwright-Robinson was recently a special guest, and gave brief remarks at the Sister Sister Annual Prayer Breakfast at the Occasions Ball Room on Saturday January 21st where she was presented with a bouquet of flowers by Lola Cook and Keondra Simons. Looking on is Founder of Sister Sister TCI Mrs. Lillian Boyce. Providenciales. Some of the properties are renting for as much as US$5,000 per night. The SUN understands that some of these properties pay their accommodation, but others have found ways to beat the system Airbnb is an online marketplace and homestay network enabling people to list or rent short-term lodging in residential properties, with the cost of such accommodation set by the property owner. It also has a number of properties for rent in the Turks and Caicos Islands. Up to the time of this report, it could not be ascertained how much money VRBO
or AirBNB has paid the Turks and Caicos Islands Government in accommodation taxes. Last year, The Turks and Caicos Hotel and Tourism Association applauded the region’s leading umbrella tourism private sector organization, the Caribbean Hotel & Tourism Association (CHTA), and its efforts to find solutions to address the challenges and opportunities presented by the rapid rise of the online vacation home rental industry and other sharing economy businesses being fueled by hosting platform companies like Airbnb and Uber. CHTA released a Resource Guide to support TCI’s local efforts to
UK looking for Financial Advisor to TCI Governor - Page 12
New Court of Appeal judges - Page 7
create a level playing field through the taxation and regulation of the sector and its engagement in local public and private sector tourism development efforts. “This is a timely and helpful document with broad implications for TCI and the Caribbean in general. We are fully supportive of the need to create a level playing field and look forward to working with government to advance the recommendations provided by the CHTA report,” said Stacy Cox, TCHTA’s Executive Director. The Caribbean has seen explosive growth in the short-term vacation home rental business. Continued on Page 2
Immigration Minister concerned about human trafficking - Page 6
Report from Cabinet meeting - Page 8