Three companies fined $20m for unlawfully collecting GCT

Three companies have been fined a total of 20 million dollars for collecting General Consumption Tax (GCT) from their customers while not being registered to do so.

Tax Administration Jamaica (TAJ), through its Intelligence, Investigation and Enforcement Unit and Legal Team, recently prosecuted New Panda Food Limited, Bodyscape Rejuvenation Centre Limited and Castillo Funny Club Entertainment for breaching section 56 (5) of the General Consumption Tax Act.

That section of the law states that, “a person, not being a registered taxpayer, who collects tax, commits an offence and is liable on summary conviction in a Resident Magistrate’s Court to a fine not exceeding five million dollars or to imprisonment for a term not exceeding twelve months or to both such fine and imprisonment.”

TAJ says during the period February 28, 2025 and March 12, 2025 the taxpayer New Panda Food Limited unlawfully collected GCT from its customers while not being registered so to do. Consequently, two charges were brought against the company.

On July 23, 2025, New Panda Food Limited by way of its director Dong Wang, pleaded guilty to both counts in the Sutton Street Tax Court in Kingston. Counsel representing the company stated that, as part of their plea mitigation, the company, which started in 2023, was given bad advice and has since been registered.

The company was fined $1 million and failure to pay the fine would result in the director facing 60 days' imprisonment.

In relation to Bodyscape Rejuvenation Centre Limited, the court was told that on February 26, 2025 and March 8 2025, the entity located at Mannings Hill Road in St Andrew, unlawfully collected General Consumption Tax (GCT) from its customers while not being a registered taxpayer.

The company was charged with two counts of collecting GCT.

The company through its director Chantelle-Lee Barrett pleaded guilty on July 23, 2025, to the offences in the Sutton Street Tax Court in Kingston. The company was charged $3 million for the offence. Failure to pay would result in the director facing 90 days' imprisonment. TAJ says the fines were subsequently paid.

Meanwhile, Montego Bay businessman Wellington Amarico Castello Guerro, trading as Castillo Funny Club Entertainment, pleaded guilty in the St James Parish Court to 12 breaches of Section 56 (5) of the General Consumption Tax Act) for collecting GCT without being registered.

The court was told that during the auditing process anomalies were discovered by the audit team, which uncovered significant underreporting. The matter was subsequently reported to the Intelligence, Investigation and Enforcement Unit.

TAJ through its Legal Unit told the Court that for the years 2020 to 2022 the taxpayer provided entertainment services for several hotels in St James and Trelawny. It was further stated that he collected approximately $15 million in GCT while being an unregistered taxpayer. The taxpayer was fined $17 million for 12 offences. Failure to pay would result in six months in prison. The fine was subsequently paid.

Tax Administration Jamaica is reminding all business operators and self-employed individuals that registration for GCT is mandatory once their taxable turnover exceeds the threshold of $15 million annually. Additionally, taxpayers who collect taxes on behalf of the Government are legally obligated to remit those funds in full and on time.

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