A VIEW FROM THE TRENCHES: THE TRINIDAD CONOMY AS REFLECTED

UNCLAS SECTIN 02 OF 02 PORT OF SPAIN 000546 SIPDIS SENSITVE STATE FOR WHA/CAR, CA/VO/F/P CHERYL BODEK E.O. 12958: N/A TAGS: ETRD PREL ECON CVIS TD SUBJECT: A VIEW FROM THE TRENCHES: THE TRINIDAD CONOMY AS REFLECTED IN VISA APPLICANTS SELF-MPLOYMENT, THE INFORMAL ECONOMY, TAX COMPLIANCE -------------- -------------- ¶7. (SBU) At 14%, the self-employed comprise the largest single segment of our study, with a median wage of $16,661, slightly less than the overall median. The self-employed work in a variety of areas, but the sector is dominated by building contractors, food service vendors/caterers, small shop or market owners and clothing resellers. (NOTE: Self-employed accountants, architects, engineers and doctors, for the purposes of this study, were accounted for in their respective fields of expertise.) While some register their businesses with the GOTT, many seem to not report income accurately. Those whose businesses are not registered or who do not pay taxes are included, by definition, in the informal economy. ¶8. (SBU) In a conversation with an official from the GOTT Board of Inland Revenue (BIR),CONOFF inquired about tax compliance rates for small businesses. The official indicated that tax compliance and accurate income reporting for the self-employed was largely non-existent and unenforceable from a resource perspective, mentioning that the BIR focused on large firms, multi-nationals, and larger family-owned concerns for revenue collection. AUSTIN