Tax agency prepares online service

Barbados' Inland Revenue Department (IRD) is carrying out a feasibility study for an electronic taxation system, deputy commissioner Frank Forde told The Barbados Advocate. The study will determine the shape of the new service, Forde said, adding that online tax filing should be ready within two years, although intermediate stages will likely be completed earlier. The agency is examining whether to set up centers with Internet terminals and IRD personnel to help people file their taxes online. Another option would be to let tax accountants file taxes online on behalf of their clients, though Forde said it e-filing would most likely be carried out by individuals using the Internet from home. The initiative will increase Barbados' competitiveness in the offshore business sector, according to Forde. The service will benefit offshore businesses because their taxes, although payable to Barbados, are usually prepared elsewhere, he said. By making the process electronic, companies could avoid the hassles and risks of sending their declarations by way of international postal services, he said. After online filing is made available, the next move would be to offer an e-billing option for businesses, Forde said.