Social Security Penalty Could Have Had Negative Effect
Wednesday 30th May, 2018 –Government says the process of submitting forms to Social Security should not be made difficult and the decision taken by the board to apply a $100 penalty per page for mistakes on submissions made by employers would have proven counter-productive.
The fine was implemented last week and prompted an immediate reaction from the business community. It led government to instruct Social Security to rescind the decision, describing it as unilateral and a nuisance tax.
Minister Charles “Max” Fernandez says had it been allowed, the penalty could have resulted in employers defaulting in fear of being penalized. He believes there is another way in dealing with the issue Social Security faces.
Government contends while businesses must pay taxes, those taxes must be well-defined and not whimsical.
It was noted that the Gaston Browne administration is not at war with businesses.