Vessels operating illegally while charter companies evade taxes
Several boats have been operating without status in the territory and several charter companies have been evading Customs and Immigration taxes.
This is according to Commissioner of Customs Wade Smith who was speaking on radio station, ZBVI recently.
Smith said his department has been conducting several inspections at various marinas to ensure all vessels present have the legal right to operate in the territory.
He said the boats discovered did not meet the required criteria by Customs.
“To have status in the Virgin Islands, a vessel must be fully imported (duty paid), temporarily imported ($200) per year, or in possession of a commercial recreational vessel license,” Smith explained.
“These vessels [that were inspected in December] had neither, which resulted in substantial revenue loss. Customs has the responsibility for border control, and we are responsible for the movement of vessels entering and leaving the territory. In layman’s terms, it equates to the police seizing a vehicle or scooter for operating on the public roads unlicensed and uninsured,” the commissioner added.
“We have also fined a number of companies who were operating without licenses, even after they have been written to and told not to charter specific vessels, our instructions were totally disregarded. We have recently fined a charter company ($20,000) for smuggling in a replacement engine for a vessel in their fleet,” he further said.
Smith noted other charter companies have been fined for smuggling various equipment into the territory. He said this happens when charter vessels go directly to the marinas before clearing Customs and Immigration.
“This very same company was fined $95,000 a couple of years ago for chartering 19 unlicensed vessels. These charter companies have been issuing cruising permits in contravention of the legislation and through our post-audit functions we have recovered thousands of dollars,” Smith continued.
The Commissioner also revealed that through surveillance at the marinas, his officers have uncovered that many boat captains lie about charters to avoid paying cruising permit taxes. However, Smith said, when guests arrive, they present the charter contracts. He described it as a blatant attempt to evade taxes.
Smith said the deceit did not stop at evading cruising permit taxes. He said operations have discovered that yachts are being sold without Custom’s knowledge.
“Only as a result of these operations were we able to identify a number of sales in which the bill of sale reflected a nominal figure of $1 as a transfer fee. A figure which is not acceptable as a transaction value for Customs purposes for evaluation and revenue collection,” Smith said.
“Our compliance operations at the marinas have resulted in over $100,000 in fines, approximately $40,000 in the recovery of duty and that is dating back for the last six weeks. In addition, it is important to note that two violators were fined $20,000 each for obstructing the officers in the execution of their duties,” the Commissioner added.
Smith said during the peak season, several charter boats, specifically water taxis were grounded until they received commercial recreational vessel licenses.
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You get back your Job and trying kill the local to make you and your dirty team look good
And all those fines you have collected are a drop in the ocean to the business you have driven away.
How you know the culprits are “locals”, unless the shoe fits you. If it does, do the right thing and respect the laws.
The industry has gone out of its way to comply, while customs changes the rules daily. When will this man talk about the other illegal trade on the water? Remember this face when the tourism economy and investment is gone.
BVI Customs has never, ever, been accused of being a team player, when it comes to marketing our tourism product. The singular focus at Customs has always been and remains, “Feed the Treasury nothing else matters”. You’d think they earn bonuses for fining tourists.
After one good tourism year following Irma, when we are all now interested in a return to normalcy, we end up with boots and guns on the docks. A highly damaging spectacle, this cheeky attitude is BS…
BVI Customs is reflective of the philosophy of our governing officials, where topping up the treasury is more important than the quality of life our residents experience, more important than fostering and building the economy of the Virgin Islands.
I am soooo looking forward to indictments coming out of the CoI. Until then… DEFUND CUSTOMS!
I so disagree. The things people come to the BVI and do and attempt to do they dear not try them in other jurisdictions. For some reason they find the officials, including Customs and Immigration in the BVI to be weak. When we go to St Thomas or any US Port, we stand at attention and hardly breath until we are outside of Customs Door. It’s high time people follow the laws of the BVI, and I commend Customs and whoever else for enforcing them. However, they must do so in the most efficient way. People have been getting away with too much for too long.
The question is , whose treasury are they feeding.? And I think we know the answer.
Well said. Through obsessively targeting the successful companies (because they have money), the BVI is killing the very businesses that are bringing real revenue onto the island. The businesses whose clients buy from small shops, use taxis and go to supermarkets. Customs may be making thousands in fines, but is losing millions in strangling the tourism industry. Customs is killing the golden goose and doesn’t even know it. It’s astonishing to witness. It’s Zimbabwe 2.0.
smuggling part and dodging tax… ya’ll really making excuses for that?
The law is the law! where else can you go and do that and there be no consequences?
come one! hold your own accountable!
Thus situation warrants more frequent inspections.
Is there a deadline given v to the offender to complete payment with additional fees if not paid by deadline and other measures taken such as confiscation of said boats and list of licenses etc
Meanwhile, the fishing boats are operating illegally without fishing licenses, Trade licenses, vessel operation licenses, safety inspections, etc., But the Commissioner needs to be the “tough” guy as he is allegedly running for office in the next election. Seems to forget that almost all of the charter companies have voters running or owning them and a lot of their employees are also voters, with long memories of the harassment. The charter industry with all of its support companies is the second largest employer in the Territory, second only to Government!
Majority of fishermen are compliant and have all their fees etc.. paid up
Define “majority “.
Yes the charter boats who perform fishing charters are compliant. The local and belonger fishing boat is not.
I witness daily, fishing boats on the ramps with no safety gear at all. Are these paying their fees, registration, license? Doubt it.
Evading Taxes – “Hello Pot? This is Kettle…”
I see nothing wrong in paying a few dollars for cruise permits if friends going sailing or paying customers. people don’t mind spending $7.00 for a mix drink but worried about paying $4.00 for a cruise permit??? No excuse.
The red tape and business hours of the government offices is the problem…unless your boat is in road town.
On sister Islands the system doesn’t work
That’s the truth. It’s as if no other islands exists but for Tortola. They don’t care though, so it’s our problem to deal with, not their’s.
Heavy handed big brother BS. Charter companies jumping through hoops to get the inspections and paperwork done on time only to have it held up by the rude arrogant customs department and then fined for not having same approved application physically onboard the boat by gun touting stormtroopers – BVI Love at its best! Lets talk about drug running W***, I hear that that’s far more lucrative!
Laws is laws and rumors is rumors. Don’t go off of hear say you probably get that rumor from a comment right under these same type posts. Focusing on the wrong thing that’s why u getting fine for not minding your own business.
As someone who is involved in the industry I am glad to see that government is doing something about these breaches. When companies cheat the system they create an unfair advantage to other companies in the same market who are paying their fair share.
Y’all only want Customs to focus on being tourist minded so u all can come here on vessels and do exactly what y’all want. It’s like u saying forget enforcing laws on the tourist and focus on the locals cause only them doing bad. Meanwhile y’all breaking every laws to think of.. keep the press on Customs!!!!…
This for who all talking bout fines tourists/visitors getting..etc
So the drugs and money stop coming into the port, so big bad w s trying to get the money other ways, just hope next election when vip lost you will be the first one together to get fired.
This article about HM Customs enforcing fines is missing key information:
1. All these alleged fines are only summary offenses and tried in Magistrate’s Court. The DPP prosecutes the offense on behalf of Customs.
2. The fine can be paid into court to release the vessel from detention. The fine funds remain n
in court until the Magistrate issues a verdict in a year or so.
3.There is the presumption of innocence is the BVI legal system so the fine is only paid to the Treasury if the defendants are found guilty.
4.When the defendants are found innocent then funds paid into court are returned to the defendants AND a cost order is issued for the prosecution to pay the legal costs of the defendant.
Corrupt fines procedures by Customs will eventually cost the BVI government money and not earn money for the Treasury.
“We have also fined a number of companies who were operating without licenses, even after they have been written to and told not to charter specific vessels, our instructions were totally disregarded. We have recently fined a charter company ($20,000) for smuggling in a replacement engine for a vessel in their fleet,” he further said.
A lot of those convicted for customs viokations are deportable… enforce all the dam rules. Ian Penn step to h**l up.
Yup
Businesses can just leave the BVI. How does that benefit us?
The ones that will comply with our laws will take your place. simple.
Where there is money to be made, there will always be industrious ppl to take advantage of it. Follow our laws or leave.
Thus situation warrants more frequent inspections.
Is there a deadline given to the offender to complete payment with additional fees if not paid by deadline and other measures taken such as confiscation of said boats and lost of licenses etc
The man forgot to include the rampant import duty evasion that goes on with all these “rental” vehicles seemingly on a permanent lease. I expect the loss in revenue is far greater than that of the odd yacht here and there.
When you can drive around every day in a vehicle that was imported illegally and the police or customs do nothing, then goodness knows what you have inside your home!
Singlehandedly killing the very industry that pays his cheque. And bragging about it. It is one thing to ensure that laws are adhered to but it is another thing to have a mentality of enFORCING the law and being overzealous! He should never have been brought back. Send his azz to St Thomas.
Soooo let me get this right, the commissioner is a bad person for enforcement of our laws? The COI should be proud of him and his team. Are you also implying that we will loose charter business unless charter companies are allowed to operate illegally..woww, the stupidity of some.
The most active, effective and efficient Customs unit in the eastern Caribbean