Stop accumulation of arrears, says party

The Government should review the working practices currently in place for the recovery of PAYE and Social Insurance payments from companies to ensure that arrears do not accumulate and result in the huge losses to the taxpayer that we are seeing all too often. That's what the PDP says.

They add: This is also important from the point of view of ensuring a level-playing field for compliant businesses as otherwise other entities are in effect being subsidised by the taxpayer.

This is similarly unacceptable from the point of view of employees who then seek to rely on social insurance contributions that they thought had been made to access healthcare or other benefits.

In the last few years there has been a series of companies leaving substantial debts due to the private sector and owing thousands of pounds in PAYE or Social Insurance. The question arises whether the Government have properly resourced the departments involved in the collection of these monies or properly monitor the making of regular payments.

Though the majority of local companies are responsible and compliant, companies who are not paying regularly are gaining a trading advantage over those who do pay and the Government should be seen to be acting strongly in the recovery of these monies. The resulting loss to the taxpayer when a company folds owing its employees contributions sometimes leads to a double loss to the tax-payer since the Government has to assist the people left jobless as well as having the shortfall of monies for PAYE and Social Insurance deductions that employers have not forwarded to Government. This should not be allowed to occur.

'The Government must be seen to be protecting the rights of employees and the best way to do this is to ensure compliance by all and not just the companies who are known to pay regularly' said PDP spokesperson Gigi Sene. 'The PDP would properly resource a recovery system to ensure all companies compete on equal terms as well as safeguarding the interest of employees while recovering monies due to the tax-payer'

26-03-10



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