Tax Services Chief Explains Court Action Against Andrew Munnings

After much public scrutiny and even the launch of fundraising efforts, the Director General of the Belize Tax Services Department (BTSD), Michelle Longsworth, gave a statement.  She noted that the matter was taken to court as a last resort.  She said that the court issued a ruling on February 25 that would have Munnings servicing his debt by paying two thousand dollars monthly; an arrangement he had reportedly refused to honor.

Michelle Longsworth, Director General, Belize Tax Service: “Repeated opportunities to comply the taxpayer has defaulted on both filing and payment obligations. In keeping with the law, we followed each step for enforcement actions. This ensures fairness to the many taxpayers who do comply even under difficult circumstances. BTS views court enforcement as a measure of last resort used only after multiple opportunities for cooperation have been provided. While some partial payments were made, he failed to comply with the court order. The court made it clear that failure to meet these obligations would result in committal to jail. This did not reach the stage it has overnight. The business began operating in 2020, but was not registered for tax purposes until 2023 after the Belize tax services contacted him. A taxpayer service officer made several attempts to provide taxpayer education but they were refused by the taxpayer. Audits and assessments were carried out in accordance with the law and the taxpayer was given the opportunity to seek a review, but did not act. Multiple payment arrangements were offered, including the waiver of penalties and interests. Additional time was granted before enforcement even after the many defaults this taxpayer made. Despite this accommodation, the taxpayer repeatedly failed to comply with both tax obligation and the binding court order. Many small businesses across Belize meet their obligations faithfully despite the economic challenges. It would be unfair to them if others who refused to comply were allowed to avoid their responsibilities.”

Longsworth furthered by offering assurances that it is not in the best interest of the BTSD does not see it in its best interest to send any businessperson to prison. She noted that having to deal with consistent defaulters is always a challenge.

Michelle Longsworth, Director General, Belize Tax Service: “We do not want to send anybody to jail. That is the last thing on our list because at the end of the day it is important that we keep businesses alive if you want to put it like that. Without businesses operating, we are not able to collect taxes. So we do not want to send people to jail. It’s a sad situation when we have defaulters or consistent defaulters that we have to reach this stage.”

Longsworth says the BTSD has been trying with Munnings since 2022 to follow the tax laws and regulations