A spike in late or non-payment of taxes by businesses is adding to Government’s revenue shortfall.Government revealed in its pre-budget report last week that it had made a nearly $50 million allowance for bad debts for fiscal 2010-11 as businesses continue to struggle as the recession drags on.The rising receivables balance showed businesses are paying their taxes significantly later than in previous years.According to the pre-budget report for 2012-13, the total net receivable balance for fiscal 2010-11 jumped 17 percent to $166.6 million, compared to $142.6 million in the previous fiscal year.The net accounts receivable balance was 17 percent of revenue.A major portion, 65 percent, of receivables was payroll tax which was due and payable on April 15 of this year.During April, the Government collected some $108 million in payroll taxes.The allowance for bad debts for 2010-11 was $47 million, representing an approximate $16 million increase from fiscal 2009-10.The report said the increase in the allowance for bad debts was due a change in the method in which bad debts are calculated and the impact of the recession on businesses.Recent past lists of delinquent tax payers have been dominated by hard-hit construction firms.“As the Pre-Budget Report mentions the Government has noted an increase in receivables throughout the fiscal year as some tax payers are finding it very difficult to continue during the current economic climate,” a Ministry of Finance spokesperson told The Royal Gazette.“The Government is sensitive to businesses during these difficult economic times and has endeavoured to assist as much as possible to help these companies to satisfy their obligations to Government.“When a Government department becomes aware of an employer’s non-payment of taxes the relevant Government department will typically arrange for a meeting with representatives of the employer and work out a viable payment plan.”Payroll tax concessions have also cost the Government revenue.The recently announced payroll tax concession for the retail sector will reduce collections by approximately $9 million, according to the report.And the hotels & restaurant sector payroll tax relief cost the Government $20.4 million.Premier Paula Cox has revealed that Government revenues are expected to be between $10 and $20 million less than the $940 million projected in the February budget. And she said spending is expected to be $950 million, $43 million higher than expected.