Published on Monday, 10 March 2014

Tax Administration Jamaica (TAJ) is set to proceed with court action against approximately 250 transport operators, who own and operate multiple Public Passenger Vehicles (PPV), and have failed to pay or make arrangements to pay their ‘Flat Tax’ assessed for the period 2012. This initial number will be increased in coming weeks as other operators, who have failed to comply with their obligations, will also be brought before the Court.

In November 2013, assessments for the ‘flat tax’ due were mailed to transport operators for the 2012 filing period. The assessments were based on a special arrangement for amounts to be paid for income tax, education tax, as well as National Housing Trust (NHT) and National Insurance Scheme (NIS) contributions and which became due December 20, 2013.

A number of transport operators have since made payments or made contact with TAJ about their status. Transport Operators who have not yet responded to the assessments are therefore reminded and encouraged to pay the amounts or to speak with a TAJ Compliance Officer to make suitable payment arrangements, if they are faced with difficulties in honouring their ‘flat tax’ obligations, to avoid court action.

Additionally, operators are reminded that the ‘flat tax’ payment for the 2013 period becomes due on March 15, 2014. Transport Operators are cautioned that payment for the 2013 period should be made by the due date to avoid possible court action.

The ‘flat tax’ is a specially arranged amount which covers Income Tax, Education Tax, as well as statutory contributions for NIS and NHT for years 2012 and 2013. It is calculated based on the seating capacity of the vehicle being used for public transportation, as well as the number of motor vehicles being operated.  The ‘flat tax’ amount was reached following months of discussions with several taxi association umbrella groups, TAJ, NHT, NIS, the Ministry of Transport and Works and the Transport Authority.

For additional information, persons may contact the Tax Administration Customer Care Centre at 1-888-TAX-HELP (829-4357) or visit the website www.jamaicatax.gov.jm

Source: JamaicaTax.gov.jm
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