Belize Tax Service Defends SARA Shift — But What About the Unpaid Tax Returns Since 2021?

Belize Tax Service Defends SARA Shift — But What About the Unpaid Tax Returns Since 2021?

Fri, 08/01/2025 - 14:24
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By: Omar Silva I Editor/Publisher

National Perspective Belize I Digital 2025

www.nationalperspectivebz.com

Belize City: Friday 1st August 2025

The Belize Tax Service is pushing full steam ahead with its transformation into the Semi-Autonomous Revenue Authority (SARA), pitching it as the future of tax collection — efficient, reliable, and modern. But for many Belizeans, especially hundreds of Defence Force service men and women still waiting on their income tax return payments from as far back as 2021, the move raises more frustration than excitement.

Several government ministries under Prime Minister John Briceño owe or haven’t reconciled accounts with the Belize Tax Service since 2021. Among them? The Ministry of Defence, leaving soldiers and officers in limbo. Every year, these taxpayers are told the same thing when they ask for their refund:

“Your Department has not reconciled, so we can’t pay you until they do. Check with them.”

For those waiting for their hard-earned tax returns, that sounds less like fiscal order and more like a rip-off dressed up in bureaucracy.

So, the obvious question is: Will the government clear these backlogged returns before turning the Tax Department into a “quasi-independent” body? Or will the SARA shift become another convenient way to dodge accountability?

SARA Pushes Data Security Reassurances

The Belize Tax Service insists this overhaul isn’t a power grab — it’s a fix. Director General Michelle Longsworth has been on the defensive, addressing fears that personal tax data could be mishandled under the new structure.

“Data protection has been a top priority,” Longsworth says. “We’ve already been subject to strict international assessments, and that scrutiny won’t stop under SARA.”

She argues that the department’s shift to electronic data filing has allowed them to inform government policy — pointing to GST-free weekends as an example of decisions based on data-driven advice.

But critics note that more data means more responsibility — and higher stakes if that data is ever compromised.

Jobs, Pensions, and Promises — PSU Pushes Back

The December transition also raises alarms for tax department employees, who will either be reassigned or reapply for jobs within the new SARA system.

The Public Service Union (PSU) isn’t convinced by the government’s assurances. PSU President Dean Flowers has asked the tough questions: What happens to pensions? Gratuities? Years of service already earned?

Longsworth insists workers won’t lose their benefits:

“If you’ve served ten years, you’re entitled to a gratuity. Fifteen years or more? A gratuity and a pension — that remains intact. Nobody loses if they choose to move to SARA.”

But there’s a gray area: employees with five to nine years of service. Longsworth admits discussions are underway with the Ministry of Finance to see if a compensation package will be offered for those just shy of full benefits.

Expansion or Empire-Building?

When SARA launches, the tax service expects to grow its staff by 40%. On paper, that sounds like progress. In reality, many Belizeans are asking who pays for it — and whether it will actually deliver results.

Longsworth dismisses fears of “free-spending” or “contract corruption,” insisting SARA won’t have the power to handle taxpayer funds directly.

“All revenue goes straight into the Consolidated Fund,” she says. “SARA won’t have a separate vault to spend from.”

Still, scepticism lingers. Bigger payrolls often come with bigger appetites — and Belizeans have seen “semi-autonomous” bodies before that promised independence but became feeding troughs for well-connected insiders.

The Bottom Line

Belize Tax Service says SARA will mean better efficiency, better planning, better tax administration. But for the Defence Force soldiers, teachers, and public workers still waiting for tax returns from 2021, those promises feel hollow.

Before the government creates a new “autonomous” tax authority, Belizeans want something simpler: Pay what’s owed. Clear the backlog. Show accountability.

Because if SARA launches without that reckoning, this transition won’t look like progress. It’ll look like another government escape hatch — with taxpayers left holding the bag.