Andrew Rutnik, commissioner of Licensing and Consumer Affairs, has vowed to continue his crackdown of licensed and unlicensed businesses who do not pay their fair share of taxes to the Virgin Islands government.
Speaking Thursday at the Rotary II meeting at Marriott Frenchman's Reef, Rutnik said enforcement of licensing regulations is his top priority.
"Much of the time the problem lies with the government and not always with the business," he said. "In the past the laws have not always been enforced. This has changed."
Rutnik has begun the tough job of proving his claims. The severity of the problem has been understated and he feels that only enforcement of the current business laws will be the answer.
He has already locked horns with gypsy cab drivers.
"These vehicles were illegal and they were obstructing traffic," he said. "We had to put a stop to this and Tutu is now served by a properly licensed service."
According to Rutnik, licensed taxi drivers must pay their fair share of taxes. "They are a local business but with no one watching, they developed their own rules and regulations. That will change."
Rutnik also said the amnesty program didn't work for his office. The amount of money collected was almost double what was lost in penalties.
Rutnik pointed out his department is funded exclusively by penalites.
Rutnik now plans to target offshore corporations that may not be paying their fair share of taxes — or any taxes — to the territory and will keep a close eye on contractors and plumbers to be sure those businesses are properly licensed and taxes are being paid.
He said the uncollected revenue is significant. "This must end, and it will with the enforcement of licensing regulations."
Rutnik said his office has concentrated on taxis and contractors but they'll get around to other businesses in time.