BICA chief: ‘Bottlenecks’ remain but Business Licence smoother

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Institute of Chartered Accountants (BICA) president yesterday said “a meaningful number” of $5m-plus turnover firms have sought Business Licence filing extensions amid “notable” process improvements.

Pretino P. Albury, in written replies to Tribune Business questions, said the 2025 Business Licence filing and payment process – now in its second year in the current format – had operated far more smoothly that last year due to better readiness by accountants and their corporate clients, as well as enhanced collaboration with the Department of Inland Revenue.

However, he added that “a primary bottleneck” to completing either the full Business Licence audit – or verification check for firms with annual turnovers between $250,000 and $5m – remains those companies that did not prepare or failed to “engage their auditors in a timely manner”. Inadequate or unavailable information required for these processes is another obstacle.

And Mr Albury told this newspaper that increased outreach by the Department of Inland Revenue will also be critical to addressing newly-emerged “complexities” caused by the introduction of the 15 percent corporate income tax for entities that are part of multinational groups with annual turnover exceeding 750m euros.

This, together with new reporting requirements and Business Licence Act reforms that treat corporate income tax as a credit to be applied against this fee, have already produced “some confusion and compliance pressure” for Bahamas-domiciled corporate entities – especially those involved in cross-border structures.

Still, hailing the improved Business Licence processes, Mr Albury said: “From BICA’s perspective, the 2025 Business Licence verification and audit cycle has demonstrated notable improvements in engagement and general preparedness compared to the prior year.

“We believe this is due in part to BICA’s measured and strategic response, including technical education initiatives and timely awareness campaigns delivered to our members. By proactively educating practitioners and bringing visibility to changes in the legislation and its implementation, BICA has helped to strengthen the collective readiness of the profession to meet these growing demands.”

However, he was quick to acknowledge that issues remain. “While this year’s process showed improvement, challenges persist. Client readiness, particularly the availability of accurate trial balances, support schedules, and reconciliations, remains a primary bottleneck,” the BICA president said.

“On the administrative side, the Department of Inland Revenue’s (DIR) taxpayer portal, though occasionally unstable, showed incremental improvements in functionality during the 2025 second quarter, especially around bulk uploads and attachment handling.

“One of the most significant concerns again this year relates to turnover thresholds exceeding $5m, which require mandatory audited financial statements. While BICA does not maintain official statistics on extension requests, we are aware that a meaningful number of entities have had to apply for extensions, particularly those that were not fully prepared or did not engage their auditors in a timely manner,” Mr Albury added.

“The extension requests have generally centred around readiness of internal records, timing of trial balances, or delays in scheduling with practitioners due to high demand.” The BICA president had previously argued that the Business Licence audit deadlines were “way too aggressive”, with end-March initially targeted for this year, based on the experience of auditors and clients alike following the first year.

However, he praised the improved collaboration received from the Department of Inland Revenue. “We appreciate that the Department of Inland Revenue (DIR) has maintained an open door policy in principle. Through our ongoing meetings and collaboration, BICA has been able to share industry feedback and advocate on behalf of our members and the business community,” Mr Albury said.

“While there is still room for improved responsiveness, especially during peak periods, we acknowledge the efforts made by the DIR to refine their processes and provide additional clarity through updated guidance notes and webinars.

“This is particularly pressing as we now face new complexities introduced by the Domestic Minimum Top-Up Tax (DMTT), implemented under the Multinational Entities Financial Reporting Act 2024, and the amendments to the Business Licence Act via the 2024 Amendment Bill,” Mr Albury said.

“These developments have created some confusion and compliance pressure for firms, especially those operating in cross-border structures or dealing with deferred revenue recognition. So we hope to have that conversation very soon.

“Either way, BICA remains committed to supporting our members, fostering dialogue with the DIR, and offering regulatory clarity to all stakeholders. As we navigate this evolving compliance landscape, our focus remains on educating, guiding and advocating to ensure that both the business community and the accounting profession remain aligned with national development goals and international best practices.”