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Gov’t approves funds for Temotu ship

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Premier of Temotu Province, Clay Forau speaking at the Temotu Province Second Appointed Day Celebrations last year. PHOTO: Elliot Dawea

TEMOTU Premier, Clay Forau Soalaoi has confirmed that the national government has eventually made and passed an allocation for their ship.

Speaking at the Province 39th Second Appointed Day in Lata yesterday, Forau said “Having our own ship will definitely address the difficulty we have with access to timely transportation.”

He said the provincial government already have several models on how to manage and operate a shipping operation viably.

“I believe that we have learnt a lot of lesson from the past and we will work together with the right people so that the same mistakes are not repeated.

“When we finally have the allocation transferred to us, we will again seek your views and assistance as to what type of ship should be purchased or even the type of arrangement that should be employed to start a shipping operation,” he said.

“With reliable shipping services business and investment activities are expected to rise again.

“Interestingly now under current circumstances, business activities in Lata are still good,” he said.

“Big business houses in Lata with very large stocks of basic merchandise get depleted even in a week without a ship to bring new stocks,” he added.

The theme of the celebration is “Development Through Peace and Unity”.

CBSI suggests changes to tax admin bill

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Eddie Osifelo
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CBSI Governor, Dr Luke Forau

By EDDIE OSIFELO

CENTRAL Bank of Solomon Islands has suggested some changes to some sections in the Tax Administration Bill 2022.

These include Section 9, 16, 18 and the penalties in the Bill.

Governor Dr Luke Forau stated this when he appeared before the Bills and Legislative Committee in Parliament last Thursday.

The Committee was inquiring into the Tax Administration Bill.

Under Section 9 (2), it states

  1. Promoting voluntary compliance; and
  2. Compliance costs to the tax payers; and
  3. The resources available to the Commissioner.

Mr Forau said from a policy construction perspective, and relates to the principles of taxation, they think there should be one more addition to the above three.

“Now (a) implies once the time and resources spent on time on filing the returns unless, then it is expected taxpayers will contribute voluntarily.

“These are the cannons of certainty and convenience that the costs of taxpayer’s compliance to filing the returns are cheaper,” he said.

Forau said if you look at the principles of taxation, this is where the economy comes in.

He said (C) implies that IRD must be appropriately resourced to minimis the costs of administering the tax.

“Now this is also coming under the cannon of economy.

“In our view, what is missing is the equity and fairness part,” he said.

Forau said perhaps the inclusion of this section may include (D) to say promoting equitable applications of all tax laws.

He said CBSI also proposed that relevant tax, once applied, be applied to all taxpayers in this category.

“The Commissioner should apply level playing fields to companies and industries.

“There shouldn’t be any special treatment until otherwise specifies in other government policies,” he added.

He said inclusion of this equitable principles also provides a holistic approach from a tax administration perspective.

Under Section 16 it states tax payers must keep and maintain tax records.

“I don’t know if it included to have a compulsory requirement for tax payers to use cash registers so they can keep and maintain the tax records and it is also a form of providing evidence record,” he added.

Furthermore, under Section 18, it requires every taxpayer other than a non-filing tax payer must apply for a tax payer identification number (TIN).

“In our view, we are posing a question why should a non-filing taxpayer not require to have a TIN when by definition he is also a taxpayer.

“We don’t see any policy rational here,” he said.

“In fact, what we are looking at is perhaps all individuals tax payers including non-filing taxpayers should be encouraged to apply for a TIN.

“Inline for this there should be a provision on all individuals employ both in private and public should have TIN number,” he said.

Forau said to encourage individuals to apply for a TIN, employ individuals doing casual work, temporarily or permanent without a TIN number should be higher PAY than if you have a TIN.

“Moreover, a TIN can be used as an ID for opening a bank account, register your sim card, it can also be used in other ID services,” he added.

Finally, Forau said the penalties under current legislation are not longer appropriate and deterrent enough.

“However, we think the proposed penalty for example $20,000 penalty units are not harsh enough to deter tax payers and even tax administrators that are not comply.

“So perhaps there need to relook at the penalties and increase from $50,000 to $100,000 units, that should give a deterrent to tax payers not going to other activities,” he added.

He said with the economy now slowing down and fiscal revenue under performing it is critically important that legislative measures are mobilised to reduce or better possible to stop all tax leakages.

“In line with this tax compliance team and revenue collecting agencies must be strengthened in terms of manpower and technical capacity,” he said.

Further to that, Forau said CBSI believe that timely ruling of taxpayers is also important to ensure business activities are not delayed and halted more unnecessary

He also encourages the Committee to fastrack the other two reforms, Consumption Tax and Income Tax so that tax reforms can come as package and implement simultaneous.

“We want to see consultation on Consumption Tax and Incomes done quickly and pass in Parliament this year and implement next year,” he added.

Temotu working on new road-map

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Lata township airport runway

THE Temotu Provincial Government is working on the Road Map to 2025 to establish infrastructures such as an international airport, international seaport, a trading vessel, better communication facilities and better roads.

Speaking at the 39th Second Appointed Day in Lata yesterday, Premier Clay Forau said they will liaise with responsible government ministries on these important projects.

“In fact, we have already submitted the infrastructure projects mentioned to the head of government and other donor partners.

“The objective is to have these infrastructures in place before the introduction of state government system in 2025 as announced by the Prime Minister,” he said.

“Our desire is to ensure that Temotu provinces is better prepared for the introduction of the state government system.

“Achieving statehood may very well be both a dream come true for some provinces as well as a defining moment for some like us in the eastern part of the country,” he said.

Furthermore, Forau said the other issue that has been confronting the government is that of land.

He said it is a real dilemma that requires cooperation of land owners.

“The Processes of formalizing land for development cannot be fulfilled without the cooperation of land owners.

“Land owners must understand that land is needed by the government for development,” he said.

Forau said the willingness of land owners to offer land and work together with the government will be a catalyst necessary to advance development.

“The provincial government believes that the issue can be resolved now as land owning groups are now talking with the government.

“There needs to be more registered land in order for the national government and donors to invest in Temotu with confidence,” he said.

Forau said land availability and people’s willingness to work with the government and other development stakeholder is crucial.

He said this will allow us to convert our potential into monetary value that people can use to improve their standard of living.

Border security important: Customs

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Ben Bilua
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Police officers patrolling the Western border with Bougainville. PHOTO ABC

BY BEN BILUA
Gizo

Customs has reiterated the importance of border security.

Customs Intelligence Officer, Denison Varikesa believes border security should be one of government’s top priorities.

Speaking during the training organised by Oceania Customs Organisation (OCO) and conducted by Australian Border Force, he said Customs plays a significant role in national and border security.

Varikesa adds that border security plays a significant role in nation building.

“As a Customs border officer, one of my core tasks is to protect Solomon Islands and its citizens when comes to border security issues.

“I always value the importance of border security and its context as it gives me knowledge to differentiate the dos and don’ts at the border.

“The more we understand border security the better we will equip our borders,” he said.

Varikesa was among 20 customs officers within the region who participated in the training.

According to OCO the training was important as threats to maritime border security continue to increase.

Statement from OCO states maritime border security is top on the agenda of Pacific customs agencies as threats of transnational organised crime, human trafficking, money laundering and white-collar crimes, illicit drug trafficking and smuggling, COVID-19, climate change and illegal fishing increase.

SUGGESTIONS FOR TAX BILL

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Eddie Osifelo
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Central Bank of Solomon Islands. Photo by CBSI

CBSI: new law should have anti-laundering and combatting financing terrorism clause

By EDDIE OSIFELO

CENTRAL Bank of Solomon Islands (CBSI) wants to see anti-money laundering/combating the financing of terrorism (AML/CFT) included in the Tax Administration Bill 2022.

Governor Dr Luke Forau stated this when appeared before the Bills and Legislative Committee last Thursday.

The committee is inquiring into the Tax Administration Bill 2022.

“With this early new phenomenon, in other jurisdictions around the world they tend to institute laws to minimise or stop the prevalence.

“Although we have an Act specifically on this area but we think in our view it is necessarily important that an AML CTF must also be featured in these sections or somewhere in this Bill,” he said.

Forau said this is to ensure that sources of funds used to pay taxes are cleaned and not source from money laundering or terrorist financing activities to investigate sources of funds.

“That the funds are not from illegal activities, and if they are found to be from illegal activities, off course Commissioner (Inland Revenue Division) should take this further to the court of law.

“Now the policy rational that we think should be included in this, the country cannot afford to be branded that our tax system facilitates money laundering or terrorism financing activities,” he said.

Forau said one thing is if the country is branded under this and then we are blacklisted, it is very difficult for us to get out of the blacklist and there are so many processes to go through.

“So, we must not put the country’s reputation at risk, if we do then it will lead to other areas especially in international trade.

“So, we suggest that an additional section should be included either in this division or other areas that empower the Commissioner to look at this area,” he added.

Furthermore, he said CBSI does not supervise casinos whether conducting money laundering activities or not.

He said it is high time Government introduce independent bodies to look at supervising this kind of business.

Opposition Leader, Matthew Wale asked if legal business using illicit gains to pay tax, will that have done in cash.

Forau, who was also part of the Money Laundering Commission, said there are couple of ways to look at it.

“Once people of money laundering, they are smart to make their way around, first thing to do to clean up the money.

“Do legit investment and it becomes clean and used to pay tax, use normal legitimacy process the banks,” he said.

He said it is a bit complex, but he thinks authorities need to be trained on this as well.

“We are very far behind in this area.

“There is no capacity in this area locally,” he added.

Wale claimed in the black market economy, rumours stated that $600 million cash are circulating and never entered banking system.

Forau said in the government, especially in IRD and Customs authorities need to build up money laundering section in this bill.

“It is an ongoing thing to train our people every now and then to update on level of activities these people will go, technology change, tactics will change too,” he added.

Wale asked on the crypto currency.

Forau said at the moment, they don’t have any capacity on crypto locally.

“If they go in that space, we don’t have law to stop and we discourage investors to go into crypto currency,” he added.

Border agents urged to be vigilant

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Eddie Osifelo
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Police officers patrolling the Western border with Bougainville. PHOTO ABC

THE multi-agencies manning the border entries in the country are urged to look out for the changing nature of criminals involving in smuggling, trafficking and organised crimes.

Australia Border Force Damien Pollard signals this warning during the training for Immigration and Police officers in Honiara last week.

The two days training (Monday 30th May and Thursday 2nd June) aimed to:

Equip Immigration and Police officers with knowledge to execute the operation plan’s border reopening framework for international airports, maritime and SI-PNG traditional border crossing; and

Understand the execution of a joint multi-law enforcement border operation plans to facilitate international border reopening.

“The other fascinating thing while we have border risks pre covid, they may change dramatically whilst we reopen the border particularly with organised illegally activities.

“Example, if someone is bringing in people illegally, usually once we identify and start blocking it, these people are very smart, they change the way they operate very quickly,” Pollard said.

He said as soon as they get the slightest hint you are on to it, the whole things change.

“As an intelligent analyst, once you start seeing that, you got to pre-empt where they going to and you got to start putting yourselves into the mindset, which way I would go and start identify the emerging trends there and get to on to that.

“But it forever changing environment, these people are highly sophisticated and they want to get people through the border and they will at any cost and and we got to stay ahead of the game and be aware what’s going around us,” he added.

Further to that, Pollard urged the intel officers to collect information of any suspicion and critically analysed it before forwarding the report to Director of Immigration in order to disrupt the illegal movement.

However, he said people are hesitating to put intel report in cases it does not happen and make them not look good in their role.

“When put your report together make sure this report is defensible,” he added.

Pollard said the importance of intel report is to reduce uncertainty, ascertain contact, assisting prioritising and assist decision making and help policy change.

Western Province vows to strengthen ties with Isabel

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Ben Bilua
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Premier Mesepitu, Father Barclay and the organising Committee

BY BEN BILUA
Gizo

WESTERN Province has vowed to strengthen its ties with Isabel Province while looking at potential development aspiration where both provinces can benefit going forward.

Premier of Western Province, Christian Mesepitu made the statement during an event held at Gizo on Friday to commemorate the 38th Isabel Second Appointed Day.

Mesepitu said both provinces are endowed with natural resources which have contributed to the country’s economy and it will be more beneficial if Isabel and Western Province collectively elaborate on common development interests that would enhance rural livelihood as well as improve standard of living.

Pamela Szetu, Fei Siota and friends at the event

He said the relationship between the two provinces dated back during the head hunting error, thus the blood connection and shared cultures are common making it easier for both provinces to collaborate in any development aspirations.

“To date people from both provinces have been tracing their origins to areas and respective parts of the provinces.

“This is further consolidated through inter-marriage and other genealogical ties which in many ways only served to reinforce what has been a traditional relationship that was in existence for centuries.

“From development perspectives, given our shared common heritage and ties, we should also look at ways where our provinces can cooperate through mutual understanding and respect to progress our development agendas.

Isabel family performed the famous Isabel dance Salo olo

“It is time we need to explore how these connections can be better utilize to benefit our citizens in a more equitable manner,” Mesepitu said.

He said Western Province is advocating for the federal system to be fast tracked and he hopes Isabel Province will also give its support toward the call.

Overstayers face deportation

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Eddie Osifelo
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By EDDIE OSIFELO

THE Immigration Division is working hard to deport overstayers in the country once the border reopens.

The non-citizens who worked in various companies have their two years visa expired during the Covid 19 and lockdown and could not return to their respective countries.

Acting Direction of Immigration, Chris Akosawa confirmed this last week during the training for Immigration and Police officers to familiarise with the ‘Keepem Yu Safe’ Operation Plan for the border reopening.

Akosawa said the Immigration Division will make sure the overstayers return home because they have breached the Immigration law.

Furthermore, Chief Immigration Officer, Arnold Horesi explained the deportation process of unlawful non-citizens.

Horesi said his office will send the deportation order to the Attorney General for vetting and the Minister of Commerce, Industry, Labour and Immigration to sign before gazette.

He said by serving the deportation order to the person, the person can agree in consent or seek judicial review within seven days.

Furthermore, Horesi said the same process applies for detention of a non-citizen who breached the Immigration law except the Director signs the detention order and not the Minister.

Akosawa said when a person is deported, the person can return back to Solomon Islands after two years if the person pays the fine.

However, he said the person is restricted to enter the country if the person still has outstanding financial obligation with the state.

Sinking island

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Alfred Pagepitu
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Ongtong Java Islands

Schuijl produces documentary about Ontong Java

BY ALFRED PAGEPITU

A feature-length documentary on Ontong Java, in the Malaita Outer Islands, whose inhabitants continue to live under existential threats of climate change has been released.

Two filmakers from Europe who visited Solomon Island, in 2018 to document the effects of Climates change on Ontong Java have published their documentary on Wednesday this week.

Ontong Java atoll is situated 250 kilometers north of Isabel and currently facing an existential crisis.

The film features intimate interviews with people in Ontong Java community who feel affected by climate change.

The film is directed and produced by Guus Schuijl (The Netherlands) and features magnificient drone footage from Iggy Pacanowski (Poland).

A member of the TV Crew, Iggy Pacanosky testing a drone on Ontong Java

In an interview with Schiijl via facebook yesterday, he said:

“I didn’t know anybody when I came to the Islands, but I told everybody that I was interested in Climate Change.

“From that point onwards, many people who felt compelled to share their experiences came to me.

“I tried to follow their lead and to learn from them”.

He said the film follows several people as they go about their daily lives on the Island. The effect of Climate Change unfolded through these casual experiences.

“To me, the most fulfilling part of this experience was to build close friendships in such a short period of time.”

Schiijl said the hospitality of the people surprised him.

Women on Ongtong Java

“But it’s easy to overlook that a silent and almost invisible tragedy is unfolding.

“It’s easy to stop seeing the effects of climate change when you’re in such a paradise,’’ Guus explained.

He said the documentary is partly set on the Ontong Java atoll and partly in the Lord Howe Settlement in Honiara.

“Roughly a quarter of the community has already relocated to the city.”

Schijl pointed out that the motivations of people to relocate is almost never cited to be climate change.

But more practical reasons such as work, education and to be with family members.

“The most valuable lesson I learned from climate change,” Guus says, “is that it works indirectly.

“It almost works like poison. It slowly enters a community and takes little things away. It’s not big, fast and dramatic. It’s easy to overlook and to ignore until it’s too late to do.”

TV producer Guus Schuijl at Ongtong Java

He said the film also features interviews with government officials and community leaders who are at the forefront of combatting these issues.

“People often tell me that the situation is hopeless, but I disagree. Just ask anybody in the community.

“The people of Ontong Java are resourceful and they have plenty of ideas.

“Some people are rethinking agriculture, others are building sea walls. I believe that Change start by constructive dialogue with chiefs.”

Climate change is real and it is happening right now. By the end of this century, the sea level will have risen with 1 meter.

And the main village on the atoll lies between 0.5 and 1.5 meter above the sea level.

The film can be watched for free on www.ontongjava.com.

Slow start for schools in Mala

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Samie Waikori
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BY SAMIE WAIKORI

Auki

A week into date of resumption for schools across the country, and schools into Malaita are yet to settle down for classes.

Chief Education Officer (CEO) for Malaita Education Authority (Malaita EA), Andy Siarani told this to the paper yesterday.

He said his office is yet to receive reports from schools around the province on the beginning of their classes as the academic year begins.

Siarani said for schools in Auki, they are slowly beginning classes; he hopes classes will be fully operational next week.

He said all school heads, teachers, students and parents already know that the national ministry of education (MEHRD) had issued May 30 as the date for schools in the country to reopen.

He adds that there is no excuse for school heads, teachers and parents in Malaita because MEHRD had announced the date of resumption since April.

Siarani also said that school calendar for the year had also issued to help teachers organise their teaching lessons and programme for the year.

He call on teachers, students and parents that academic classes for the year begins and they should set in motion after the long school rest and be in schools.

Siarani said Malaita EA will continue to liaise through its Principal Education Officers (PEOs) from each regions of the province on other upcoming school programs for the year.

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