Tax arrears settlement programme extended by two months

Tax Administration Jamaica (TAJ) has announced a two-month extension of its Special Arrears Settlement Programme, which allows taxpayers with outstanding debt for selected tax types to pay the arrears without incurring penalties, interest and surcharges.

The programme started in January and was set to end on Monday, March 31.

Tax types on which penalties, interest and surcharges will be waived are Education Tax, Corporate Income Tax, individual income tax, Pay As You Earn (PAYE), Special Consumption Tax, General Consumption Tax, Asset Tax and Partnership Income Tax.

The TAJ has a target of collecting $10 billion, which it says has been exceeded by $500 million.

The 8-week programme will result in approximately $12 billion of waivers in penalties, interest and surcharges (IPS), noted TAJ.

The authority, in a media release on Tuesday, argued that this is a strong indicator that taxpayers have both seen the benefit of the offer and have answered the call to take advantage to become and remain compliant.

Though support for the programme is high, the authority says it has observed that there remains a significant number of principal arrears and penalties, interest and surcharges on the accounts of many taxpayers.

Additionally, feedback from the business community and interest groups has suggested that many taxpayers were constrained by the timeline of the offer to be able to put the necessary measures in place to qualify and thereby take advantage of the initiative, it added.

Additionally, the authority is reporting that over 30,000 calls has been made which equates to more than $47 billion of outstanding principal and a corresponding $51 billion in penalties, interest and surcharges.

These taxpayers were invited to consider the offer with a majority of contacts indicating a willingness to, or taking active measures towards to taking up the offer by paying down or paying off their liabilities.

TAJ is reminding taxpayers of the significant advantage at hand, as the programme provides an opportunity for persons and businesses, whether individuals, 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 are advised that this waiver offer also relates to withholding taxes associated with Income tax payments.

General Consumption Tax (GCT) taxpayers are reminded of the requirement to submit their applications in writing as required by law.

Taxpayers with no outstanding principal owing, but have penalties, interest and surcharges balances on record, are also required to apply formally to benefit from the offer, relating to waiver for GCT.

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

It should be 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 Tax Administration Jamaica to arrange to pay off the principal arrears by the extended May 31 deadline.

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

For additional informational support, persons may contact Compliance Officer, the Tax Administration Customer Care Centre at 888-TAX-HELP (829-4357) or visit the website www.jamaicatax.gov.jm.

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