TAJ collects over $3 billion under arrears settlement programme

Tax Administration Jamaica (TAJ) is reporting that it has collected over $3 billion in principal arrears under its Special Arrears Settlement Programme since its launch approximately three weeks earlier.

The programme, which targets $10 billion in debt stock, will waive/remit Interest, Penalty and Surcharge (IPS) accrued once outstanding principal taxes are paid by March 31.

It also 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.

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 have the opportunity up until March 31 to settle their arrears, and have the IPS waived by the same percentage that the outstanding principal is settled.

General Consumption Tax (GCT) taxpayers must note that in order to benefit from the programme, they must submit their applications in writing as required by law.

Taxpayers with no outstanding principal owing, but have IPS balances on record, are also required to apply formally to benefit from the offer.

Individuals and businesspersons are required to be current with their filing obligations, to include Income Tax Returns and payments due March 17.

Additionally, the programme is restricted to outstanding principal tax up to the Year of Assessment 2024 and Period of Assessment January and February 2025.

Taxpayers with cases currently under objection and appeals will also qualify for the waiver, if the principal taxes have been paid.

The TAJ noted 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 the TAJ to arrange to pay off the principal arrears by the March 31 deadline.

This includes taxpayers who may have operated and closed businesses before, or employed to more than one employer at any given time.

The authority says the 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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