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
Read More
----

Tax Administration Jamaica (TAJ) has revised income tax return forms, which have been gazetted to take effect January 1, 2014. All categories of taxpayers, such as companies, self-employed persons, individuals and partnerships are required to use the revised forms to file their returns during the current income tax filing period, due by March 15.

The changes to the series of income tax forms have been made to reflect recent changes to income tax rates and variations in tax on dividends. In addition, the revised forms will allow TAJ to capture additional information making it easier for the administration to process tax returns.

For companies, the IT02 return has been revised to require persons to indicate if they are categorised as a regulated, large unregulated or unregulated company. This is important as the tax rate for each category differs with the 2013 adjustment to tax rate for companies. While the income tax rate for regulated companies remains at 33⅓%, the rates for large unregulated and unregulated companies were reduced to 30% and 25%, respectively. It should be noted that the 30% rate for large unregulated companies only apply to Year of Assessment 2013, as effective January 1, 2014 they are now taxed at 25%.

In general, all the annual income tax returns have been amended to capture changes in the varying rates for dividends. The forms have also been adjusted to include a separate line to identify partnership income. The declaration section of the forms has been amended and now requires that persons who prepare the tax return provide details of their name, TRN and contact information.

The use of the estimated income tax return, IT07, has also been adjusted. Companies and other organisations will continue to use the estimated income tax return for both filing and payment. However, self-employed persons will only use the IT07 to declare their estimated income. They will now use the new single Self-employed Quarterly Statutory Payment Form S03 to make their payments, not just for estimated income tax, but also for education tax, as well as NHT and NIS contributions.

The revised income tax returns, along with a Notes and Instructions booklet, are available on TAJ's website at www.jamaicatax.gov.jm. Persons filing manually may therefore download the forms, which may be filled-in electronically, then printed, signed and taken to any tax office. As a more convenient option, tax returns may be filed using the Jamaica Tax Portal and payments made using a credit card or direct banking.
--
Self-employed persons will now find it simpler to pay their estimated income tax, as well as education tax and NHT and NIS contributions with the introduction of a single Quarterly Statutory Payment form (S03). This form, which was introduced on January 1, 2014, replaces four separate payment vouchers and forms that this group was previously required to fill out in order to make payments.

To add to this convenience, the applicable taxes and contributions for education tax, NHT and NIS are now due quarterly, similar to estimated income tax, instead of monthly. “These changes will save time and reduce the administrative cost that many taxpayers currently face”, says Meris Haughton, Director Communications, TAJ.

The first consolidated quarterly statutory payment using the new S03 form becomes due on March 15, 2014. The form is currently available on the Tax Administration Jamaica website at www.jamaicatax.gov.jm. Self-employed persons may download the S03, complete it and make payment at any tax office for all the entities.

Starting January 20 and continuing for the next few weeks, TAJ and partner agencies NHT and NIS will be hosting sensitisation sessions for self-employed persons and other stakeholders across the island. At that time participants will also be briefed on other initiatives to be introduced in coming months.

The implementation of the S03 form and the quarterly payment schedule are part of an on-going effort by government to simplify the tax process and make it easier to do business in Jamaica. Over the last two years government similarly consolidated the Employers Monthly Statutory Remittance Payroll Deduction Form (S01) and introduced a single Employers Annual Return form (S02).

Source: JamaicaTax.gov.jm

Read More

Since the start of the fiscal year Tax Administration Jamaica (TAJ) through its Special Enforcement Team (SET), has moved to intensify enforcement action against delinquent taxpayers. To date, TAJ in collaboration with the police has arrested twelve (12) persons for outstanding sums of just over $6.5 M.

The breaches, which range across tax types such as PAYE, Income Tax, Education Tax, GCT and Property Tax, led to the arrests in the parishes of Westmoreland, Clarendon, Portland, St. Ann and St. Mary. Subsequent to the arrests, the tax authority has recovered Six Million, Five Hundred and Fifty Eight Thousand, One Hundred and Eighty Dollars ($6,558,108).

The Special Enforcement Team (SET), which operates island wide, is mandated to handle all recovery matters relating to chronically delinquent taxpayers for various tax breaches. SET works closely with the police in an effort to have warrants of commitment ordered by the Court executed, and to carry out operations to seize assets to cover outstanding tax.

In addition to making arrests where Judgement Order is given by the Court the tax authority will also continue to intensify other enforcement and collections efforts to recover outstanding sums, while increasing taxpayer education and improving service delivery. Taxpayers are therefore encouraged to speak with TAJ to make suitable arrangements, if they are faced with difficulties in honouring their tax obligations, to avoid enforcement action.

Source: JamaicaTax.gov.jm

Read More

Tax Administration Jamaica (TAJ) has revised income tax return forms, which have been gazetted to take effect January 1, 2014. All categories of taxpayers, such as companies, self-employed persons, individuals and partnerships are required to use the revised forms to file their returns during the current income tax filing period, due by March 15.

The changes to the series of income tax forms have been made to reflect recent changes to income tax rates and variations in tax on dividends. In addition, the revised forms will allow TAJ to capture additional information making it easier for the administration to process tax returns.

For companies, the IT02 return has been revised to require persons to indicate if they are categorised as a regulated, large unregulated or unregulated company. This is important as the tax rate for each category differs with the 2013 adjustment to tax rate for companies. While the income tax rate for regulated companies remains at 33⅓%, the rates for large unregulated and unregulated companies were reduced to 30% and 25%, respectively. It should be noted that the 30% rate for large unregulated companies only apply to Year of Assessment 2013, as effective January 1, 2014 they are now taxed at 25%.

In general, all the annual income tax returns have been amended to capture changes in the varying rates for dividends. The forms have also been adjusted to include a separate line to identify partnership income. The declaration section of the forms has been amended and now requires that persons who prepare the tax return provide details of their name, TRN and contact information.

The use of the estimated income tax return, IT07, has also been adjusted. Companies and other organisations will continue to use the estimated income tax return for both filing and payment. However, self-employed persons will only use the IT07 to declare their estimated income. They will now use the new single Self-employed Quarterly Statutory Payment Form S03 to make their payments, not just for estimated income tax, but also for education tax, as well as NHT and NIS contributions.

The revised income tax returns, along with a Notes and Instructions booklet, are available on TAJ's website at www.jamaicatax.gov.jm. Persons filing manually may therefore download the forms, which may be filled-in electronically, then printed, signed and taken to any tax office. As a more convenient option, tax returns may be filed using the Jamaica Tax Portal and payments made using a credit card or direct banking.

Source: JamaicaTax.gov.jm

Read More