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By Crystal ConwayIt is a common occurrence in many communities across Guyana to walk or drive past a business that was recently closed after operating only for a few months,Cheap Jerseys From China, then to see another one pop up in the same spot a short time later. This cycle is then repeated yet again.It is a fact that small and medium sized enterprises are the backbone of the local economy, but another less touted fact is that the number of start-ups that just disappear into thin air is disproportionately high.There are large numbers of unregistered small businesses, corner shops and stands. The reasons for not registering a business can vary but many times the entrepreneurs do not want to cut into their profit margins with the necessary payments that are part and parcel of being a registered commercial entity.They are not charged business tariffs for the utilities they use nor do they pay landed or import taxes at the commercial rates required of them.In a recent interview, Mr. Chandradat Chintamani, President of the Georgetown Chamber of Commerce and Industry (GCCI), was asked about these disappearing businesses.He noted that first of all there is need for better controls in place to recognise the presence of new businesses and to enforce the registration requirements on them in an effort to ensure that they contribute their fair share to the taxes of the country in accordance with their status as business entities.He added that there are occasions when a business would start up and operate for a short time under a given name, only to ‘close down’ and reopen under a new name, carrying on the same business activities; simply as a means of evading the taxes due.Over the past few years however,Cheap NFL Jerseys Wholesale, the new Value Added Tax/Tax Payer Identification (VAT/TIN) regulations have added some measure of accountability to the system in terms of doing business with the Government.It is now impossible to receive imports without a TIN number and reclaiming VAT is not possible if an entity is not duly registered with all the necessary paperwork to prove their legitimate status.But although these measures should in principle make operating an unregistered business harder,China Jerseys Wholesale, there are still Guyanese who manage to find their way around without having to pay the necessary taxes.However,Wholesale Jerseys USA, as they make the move into legitimacy, a number of these businesses fold under the pressures of the taxes and duties they have to pay, coupled with overhead operating costs and the market forces that govern their profit lines. They fold and leave unpaid loans with the lending agencies dedicated to furthering the cause of small businesses in the country.According to Mr. Chintamani, the issue of taxes perhaps being too high for entrepreneurs now entering the business sector and for businesses already in existence is being addressed by the government in the tax review that is currently underway.He noted that although it has been ongoing for some time there is a good possibility that in the next 12 to 14 months there may actually be a comprehensive answer as to what the ideal taxes might be for Guyana, especially when compared to the other nations of the Caribbean.When or even if, these new taxes would be implemented was another matter entirely.According to a senior member of a private accounting firm, other contributory factors to the failure of businesses,NFL Jerseys China, both large and small are inadequate resources and funding as well as mismanagement,Cheap Jerseys From China, which are all valid concerns.Many Guyanese may not feel that they qualify for funding to start a business, and may be unable to keep up with the interest rates on the repayment of a bank loan – provided they even qualify for one or any number of other financially oriented reasons.Mismanagement is also an issue, especially since most small business owners may not have the wherewithal to engage in the necessary training or pick up the skills needed to run a business. |
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