Bridgetown.
Government amended the Customs Act in the House of Assembly yesterday in an attempt to hundreds of millions of dollars owned to the Customs Department as a result of bounced cheques issued by business houses.
Minister of Finance Chris Sinckler described the situation as "very insidious" and "particularly odious" and berated the fact that some company owners and directors hid behind the corporate veil to evade payment and duties to the Customs Department.
Sinckler told Parliament the situation was so serious that the Government was forced to amend the Customs Act, which previously placed liability mainly on companies or corporation and was only able to hold directors responsible as a last resort.
He said that under the original act, the process was so time consuming and complicated that by the time of completion, the companies owners and directors would have gone on to form other companies.
"In fact, some person who wanted to continue their nefarious activies dissolved the companies or shult them down, went to the Rgistry and formed a new company and started to conduct business with Customs again . Because the law is structured in such a way that the new entity is considered clean. The Comptroller of Customs could not go after the new company which continued to do business hiding the corporate veil", Sinckler explained.
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