Ascension : Taxation On Empty Property
Submitted by The Islander (Georgina Benjamin) 31.07.2008 (Article Archived on 14.08.2008)

Dear Editor, I write to object strongly against the proposed tax to be levied on empty property owned by St Helenians working overseas based on the rental value of these properties.

If owners wish to rent their properties all well and good and of course they are expected to pay tax on any income derived from this.  That said how on earth people can be taxed on the rentable value if they are not receiving any income.

 In the overview of the Income Tax Proposals under the heading Taxing World Income it states;

 “Taxing world income is particularly relevant for St Helena as many residents travel to Ascension and Falklands to earn considerable higher incomes than they would by staying home.  Under the present laws these people pay no income tax on their foreign income but are entitled to enjoy the benefits of social welfare when they return home.  Government relies on income tax as a major source of revenue to fund social welfare.  The majority of people who live and work in St Helena do not earn high incomes and should not be required to pay for the social welfare of their higher paid country men and women who are working offshore”

 I and many other owners of private property have no problem with this statement but any taxes imposed should be done fairly and not based on a fictitious payment.  Many empty properties are family homes containing their personnel and private possessions.

Many Saints work overseas to earn enough money to pay existing housing loan or to build their houses without having to resort to taking out a loan.  Empty family homes still require regular maintenance both inside and out and this costs money which is sent, from people working off Island, to St Helena to have this work carried out.  If all the Saints who currently work overseas had remained on St Helena Island I dread to think how stretched Government would been to find Landlord homes for those on low wages which would have been the majority.  The Government’s opinion that we are not contributing to St Helena is somewhat harsh as we do by sending home pay, maintaining our houses, paying housing loans etc. and increased energy bills and standing charges. It’s worth mentioning there are some St Helenians who, although working off shore also pay regular monthly income tax on pensions in St Helena; is this tax not contributing to the well being of St Helena?  The Income Tax report emphasises that some losses made in one area of tax increase will be made up by the new proposed PAYE income tax rates but this is just a robbing Peter to pay Paul approach.

Not so long ago Government was eager to persuade Saints to return home but it would seem that there has been something of a u-turn as it appears, in many respects, that Saints working overseas are being punished.  If this is Governments way to get the Saints back home I am afraid you are going the wrong way about it.  With regard to taxing the interests earned on accounts in the St Helena Bank I hope Government and Councillors will heed the letter written by the Bank Manager.

Saint Helenians here on Ascension are extremely angry over some of these tax proposals, understandable, as they all do not earn high salaries and they have to pay local tax on their income.  We are mindful of the less well off in St Helena but any additional taxes imposed on those working overseas must be done fairly. 

Georgina Benjamin

Two Boats, Ascension