BRA moves to stop arrears build-up

The Barbados Revenue Authority (BRA) is intensifying efforts to ensure Barbadians pay their taxes while stopping arrears from becoming unmanageable.

BRA Revenue Commissioner Jason King outlined that objective yesterday as he reported that the state-agency had already “strengthened capacity in tax arrears management” and otherwise, but needed “deeper technical expertise, particularly in specialised areas such as international taxation, compliance, risk management and digital systems”.

This follows an organisational review which identified some “gaps” in the operations.

Addressing the Institute of Chartered Accountants of Barbados’ Annual Tax Update 2026 at the Lloyd Erskine Sandiford Centre, King also announced that the BRA would be pressing on with a major digital transformation he expected to improve service delivery and support the ease of doing business.

The Revenue Commissioner, who was appointed last September, shared that the organisation completed an organisational review which “highlighted areas where we must strengthen risk management, sharpen compliance and performance monitoring and better align our plans and outcomes”.

Noting that these insights are being actively used to shape the BRA’s reform agenda, he added that the review “also identified gaps in relation to compliance and arrears management”.

“Although enforcement and collection activities continue, there is more work to be done in how we use data, risk analysis and segmentation across tax types. As Commissioner, I want a system that identifies risks earlier, supports voluntary compliance more effectively, and reduces the buildup of arrears before they become unmanageable,” he said.

Refunds stock

“That shift requires better tools, better information and better integration across our operations. We want to reduce our receivables, and at the same time, reduce our refunds stock.”

King made it clear that the gaps identified during this financial year were not signs of failure.

Rather, he said, they were “a result of taking a hard, honest look at ourselves as an organisation, and they have directly informed our priorities for the 2026/2027 financial year and beyond”.

“Digital transformation remains a central priority in 2026/27 we will integrate BiMPay into our payment ecosystem, expanding non-cash payment options and making it easier and more convenient for taxpayers to meet their obligations,” he told chartered accountants participating in-person and online.

“We will also advance the request for proposals for the modernisation of our core tax system, laying the groundwork for a fully-integrated digital tax administration platform.

“In parallel, we will continue strengthening cyber security and upgrading hardware to ensure system reliability and data protection. We will work closely with development partners to address priority gaps identified through the assessment, particularly in governance, compliance management, service delivery, standards and performance monitoring.”

While announcing plans for improvements, King said the past year for the BRA was “one of consolidation and progress, strengthening our systems, improving service delivery and laying a solid foundation for the next phase of reform”.

“We have identified opportunities to strengthen how we approach compliance. Historically, too much of our effort has been reactive,” he observed.

“Going forward, we will be more targeted and more data-driven by using risk-based approaches that allow us to focus attention where it matters most, while making compliance easier for those who are already trying to do the right thing.”

The BRA has “started the journey of integrating our risk-based compliance framework into our operations”, and King explained that this “will allow us to better target our audits, enforcement actions and compliance interventions”.

“Taking this approach ensures that our limited resources are directed where the risks are highest, while compliant taxpayers experience fewer unnecessary interactions,” he stated.

Milestone

“We also achieved a milestone in our digital transformation journey with the introduction of the online land tax clearance certificate, the introduction of which significantly reduced processing times and improved ease of doing business for property owners and professionals.

“Additionally, we revamped the corporation tax return and successfully launched the car rental levy return within TAMIS, fulfilling legislative changes and supporting compliance requirements. Further changes are in the works for the corporation tax return to ensure that it is fit-for-purpose.”

King reminded his audience that some of the challenges confronting the BRA were new and stemmed from “legacy issues that have built up over time, presenting us with gaps in systems integration, in automation and in the way our processes connect across tax types”.

“While we have expanded online services and introduced new digital tools, part of our core operation still relies on legacy systems and manual processes. I am not satisfied with that reality,” he said.

“These limitations affect processing times, constrain our ability to share information in real time, and place unnecessary pressure on staff and taxpayers alike.” (SC)

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