Bahamas Department of Inland Revenue increases tax enforcement

The Bahamas Department of Inland Revenue is intensifying enforcement measures to combat real property tax arrears. Controller Shunda Strachan announced that the department will increase its use of the ‘power of sale’ authority, which allows the government to seize and sell properties at public auction to recover unpaid taxes.

While compliance has improved among owner-occupied property owners, Strachan noted persistent challenges in collecting taxes from commercial properties and vacant land. To date, approximately 15 properties have been sold through this process. The department aims to significantly reduce outstanding arrears this year.

Inland Revenue’s role in the national economy has grown substantially; it accounted for 46 percent of government revenue last year. Projections for the current year suggest the department could bring in between $2 billion and $2.3 billion, potentially representing more than 52 percent of the government’s overall revenue.