PHILIPSBURG:— Benjamin & Parker (www.b-parker.com) with this article wishes to show its solidarity with the St. Maarten community, its business community and BP’s Associates. The objective of this article is to clarify the real financial damages of the business community after hurricane Irma left the Island in devastation.
At this time, the corporate community must consider that fiscal authorities will not have any special consideration in their approach in view that the Tax Legislation does not mention loss of data, or information necessary for taxation purposes, due or attributed to an Act of God. The Federal Tax Law dictates that a company must warehouse its data for a period of 10 years no exceptions. The E-Consultancy firm main concern is how the Tax Office may use this situation to support ball park taxation figures due to loss of data in the hurricane or will take a combative position for taxation after the fact.
Before and after the fact
The firm conducted a thorough study on the matter and concluded that the following losses must be taken into account:
Complete business disruption
Loss of Equity
Loss of Earning capacity
Corporate Net Worth devaluation
All of the above are also subdivided into current, long-term and perpetuity impact. The biggest question is how much time it will take to recover and bring the net worth to its principle value before the hurricane impact. The main objective for any businessman is to recover the financial damages, the resilience costs and how to support the documented information when determining the entire financial damage of the company which is tax deductible.
The calculation is important to contain taxations based upon ballpark assumptions while having enormous losses and secure the “real damage” for the company financial compensation or insurance claims.
Benjamin & Parker are experts in the tax reduction and refund environment, therefore recommend the following actions to be taken by the SXM business community:
- Take as many pics of your owned house, business premises, interior, and exterior. (This may be used for income and profit tax purposes)
- Make a list of your clients that may be out of the economic traffic long term.
- Try to get your building appraised as it is now, with comparisons before the hurricane in regards to value.
- Estimated loss of goods supported by foreign and local vendors invoices
The firm emphasizes that the tax law does not indicate any losses by an Act of God and therefore the metric real damage and financial losses must be introduced as a tool to withstand any exorbitant tax collections.
Benjamin & Parker Press Release