computers could

New VAT penalties: computers could be the key

COMPUTERISATION could eat the transition to Value Added Tt for businesses and the governmen according to computer retailers.

And, in the process, it could kic start a high-tech boom in business.

Pro Systems’ Charles Quai HI believes that, without computerisatioc VAT could see the government end u with “1000 shopkeepers all wii scribbled notes and books”.

This kind of operation might won for smaller, family-style businesses “b( for most businesses the result could 1 chaos for the business owners and f] the Government trying to polii VAT,” he said.

Qpai Hoi suggests a governmet subsidy: “There are no incentives fl shopkeepers to computerise that I knee of. There are penalties for late sui mission of records and the onus is on tl shopkeepers. I think the governme:; could provide some sort of subsidy (o computers) to help itself in terms

policing VAT.”

The government’s tougher stance o late or incomplete lodgement of stat) ments (PIM January, 1991) shoui already add weight to the argumei; from the businesses’ point of view.

Quai Hoi said the minimum for shopkeeper would be a standard ele' tronic cash register costing about sBof but a computer and software all would be needed to record purchase and sales, and VAT paid and receiver “You’re looking at S4OOO investmei just to control your business, becaut it’s become essential furniture”.

ICL’s general manager in Fiji, JoH Fisher, predicts a lot of activity at til small end of the market early this yea “because businesses need to get the act together to safely record the infoc mation they need to pass on i government bodies, and to ensure the correctly claim back the VAT the deserve.”

According to IDE’s software man ager, Sunil Nand, computer companii are ready, willing and able to incorpoc ate VAT through established or indt vidualised software.

“But it seems the VAT people hav not emphasised enough how computes could make life so much easier fol shopkeepers. Computers could allow ' shopkeeper to know even to the horn how much he has sold and how muo VAT he has incurred.” tl