J$88 million was already agreed upon and paid over to TAJ in 2017

Durrant Pate/Contributor

Tax Administration Jamaica (TAJ) has reached an agreement with Caribbean Producers Jamaica (CPJ) to settle its tax liability for the period January 2012 to December 2015 at J$328 million.

This represents the culmination of seven years of negotiations between the parties to arrive at a final position regarding the Montego Bay based food distribution company’s tax liability for General Consumption Tax (GCT) for January 2012 to December 2015.

In 2016, TAJ conducted a GCT audit for the period in question and proposed an adjustment to the returns for the period. Since then CPJ’s management under the oversight of its Board of Directors has been in dialogue with TAJ and other relevant authorities to review and resolve the proposed adjustments.

CONTINGENT LIABILITY OF J$340M

However, on March 29, CPJ’s management agreed to a final assessment of J$328 million, of which J$88 million was already agreed upon and paid over in 2017 to the TAJ. The company had set aside reserves to mitigate against the sum payable upon final assessment, which has now been settled with the TAJ.

CPJ, which is the largest food and beverage supplier to Jamaica’s hospitality sector, had listed a contingent liability of J$340 million with TAJ, representing the GCT arrears for the period cited