TAJ aiming to collect $10 billion in outstanding taxes with arrears settlement programme

Tax Administration Jamaica (TAJ) has launched a Special Arrears Settlement Programme, designed to waive/remit Interest, Penalty and Surcharge (IPS) accrued once outstanding principal taxes are paid by March 31, 2025.

The programme provides an opportunity for all persons and businesses, whether self-employed, company or organisations, to clear their debts, without the additional costs typically associated with late filing and payments related to several tax types and become compliant.

The TAJ says it is expected that the arrears settlement programme will collect $10 billion in outstanding taxes, thereby significantly reducing the debt stock by March 31, 2025.

Taxpayers with outstanding principal amounts for Education Tax, Corporate Income Tax, Individual Income Tax, Pay As You Earn, Special Consumption Tax, General Consumption Tax, Asset Tax and Partnership Income Tax will be to settle their arrears, and have the IPS waived by the same percentage that the outstanding principal has been settled.

TAJ notes that the programme is restricted to outstanding principal tax up to the Year of Assessment 2024 and Period of Assessment 2025.

This means taxpayers will be required to be current with their filing obligations, to include Income Tax Returns and payments due March 17.

Additionally, cases currently under objection and appeals will also qualify for the waiver, provided that the principal taxes have been paid, the tax authority stated.

It adds that this could be before or after a decision or agreement on the amount determined on the objection or appeal.

Taxpayers wishing to take advantage of the programme are encouraged to contact TAJ to arrange to pay off the principal arrears by the March 31 deadline.

Additionally, some taxpayers have been identified by TAJ, and will be invited to review the offer in order to benefit.

The TAJ says the Special Arrears Settlement Programme is expected to streamline the process of settling outstanding debts associated with the selected tax types.

“This will result in a more efficient recovery of funds, decrease in the overall debt stock, improved filing compliance, and ultimately lowering tax administrative costs. This activity will redound to the benefit of the taxpayer, making the process of arrears settlement easier, particularly at this time for Income Tax filers who would stand to benefit significantly.”

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