Belize Tax Services Refutes Union Claims Over Transition to SARA

The Belize Tax Services Department (BTSD) has pushed back against what it calls “misleading” statements made recently in the media regarding the department’s transition into a Semi-Autonomous Revenue Authority (SARA).  Just yesterday the Public Service Union (PSU) President Dean Flowers was on The Morning Show where he raised concerns about the future of public officers within the tax unit.  Flowers had alleged a lack of communication from the BTSD, claiming that meeting minutes hadn’t been shared and that officers’ questions about the transition remained unanswered.  In a statement issued late yesterday evening, the BTSD clarified its position on the matter and provided its perspective on the ongoing process. The department’s statement is a direct response to the PSU president’s claims, which have raised anxiety among public officers about their employment status as the transition to a SARA moves forward. The clarification from the BTSD seeks to assure staff and the public that the department is managing the process transparently.

Dean Flowers, President, PSU: “And so anything that I will say here today or that I have said can be corroborated by them or will be proven if and when the Director General decides to release the minutes because to date Troy, three weeks after, she refuses to release those minutes because those minutes will highlight that she was unable to respond to 80% of the questions as it relates to how SARA will work and function. So if you’re driving the change and you’re clueless as to how this thing will work, what brought it about, what is not working right now, what has been achieved under the recently amalgamated departments, which was where our questions really were geared.”

Troy Gabb, Host, The Morning Show: Is there a piece of draft legislation? Has there been a white paper? Has there been cabinet approval? Are you aware of any of these things that then allow the Director General the level of authority to then sit at that head table to talk about it? Or is this an exploratory component? 
Dean Flowers, President, PSU:“She had her legal counsel there. And the minutes again will reflect  the many questions I posed to the legal counsel who couldn’t answer absolutely any other than to say….some of the questions is, “you want a transition in December ’25, is there a draft legislation? Because we need to see how the revenues will now be handled, how the staff will now be impacted, what will be the changes in the legislation that will affect the people we represent and the taxpayers.”And the response from the legal counsel was there is a  draft legislation but that is to go to cabinet. What goes to cabinet is after you’re done consulting,  after you hear the input of the stakeholders, not what you want to send to cabinet. And so I said to her, as the representative we need to see this legislation. Can you share? “No.”  We can’t share that legislation with you, that legislation.  Allow me, Rene section 106, Belize Constitution that establishes the public service. It is clear, anything you want to do that will impact the officers there must be consultation with the legal representative. And the regulations under 73 and 4 is clear again, Troy, you cannot make adverse decisions without having a conversation. You can’t change people’s terms and conditions of service or any contract without sitting down with them. So who gives the Director General any authority? Or by way of the financial secretary, any authority to believe that they can unilaterally take these decisions and then say to us we can’t share no organogram with you because there is none. We can’t share no study with you. We can’t share no white paper with you. We can’t share no gap analysis, no economic analysis, no pieces of legislation, no nothing with you. And we are the legal representatives of public officers and the officers who stand to be affected in this section. So this is the  sad state of affairs in how they are proposing this transition.”

A major concern for Flowers was the question of where the additional funds for salaries will be coming from being that they are projecting that the SARA transition will create an opportunity for 400 employees. 

Dean Flowers, President, PSU: “You’re now targeting your largest revenue generating authority to put it in the hands of a politically appointed board. How will it work? Yes, the money is going into the consolidated fund as one of the responses that Ms. Longsworth would have informed us. What comes back out? What comes back out? What will it cost to run this new statutory body? And what public service will be impacted by virtue of the significant increase that this statutory authority will now cost the Belizean people. Why a significant increase? Because we currently have 236 people in that department. The projection is to increase that to 400 staff. That’s an increase of 40%. The emoluments, according to her, is $9 million currently. If you increase that by 40%, you’re looking at what $3.6 million or $3.9 million, there about. And that’s using the base salary. She’s saying that they currently have some Filipino consultant looking at a market study for competitive salaries because the salaries will increase. So in emoluments alone Troy we might be looking at well over $25 to $33 million. Where will that additional $20 million come from? From health?  From education? What she failed to do is to show how you will improve efficiency?”

The release from the BTSD further noted that the SARA transition will not result in job losses, and that all current BTSD employees are guaranteed continued employment and will be offered the opportunity to transition to SARA with improved compensation and benefits. For those who choose not to transition, their jobs are secure through redeployment within the wider public service.