It has been revealed that media house Nationwide News Network founded and headed by Cliff Hughes owes the Jamaican tax department some J$1.2 billion.

This is claimed to be a cumulative figure comprising GCT, PAYE, Education tax, NHT, HEART, NIS Assets, CIT and other miscellaneous deductions from 2005 to 2018.

It was initially believed that Nationwide owed $65 million. The tax statement has been widely circulated and the question is who leaked it and why?

It is said that Nationwide was granted 10 write-offs.

Neither Cliff Hughes nor any spokesperson from Nationwide News Network has corroborated what exact sums are owed and what interest has accrued 

The question is being asked, why isn’t the Government actively seeking to have this matter rectified and what accommodation was reached with Nationwide?

There is disgruntlement from some business operators who find themselves in the predicament of being behind with their tax payments and are asked to make restitution quickly. Why does Nationwide get to enjoy such largesse from the Government when everyone has to pay their taxes on a timely basis?

Running a business in Jamaica is not easy, more so a media operation in these times. The industry is fractured with many more players coming onto the scene chasing scant advertising dollars. Then there is the ubiquity of social media.

In Jamaica, there are about eight companies able to make significant advertising commitments. This can be problematic for local media companies carrying significant staff, operating and administrative costs. Nationwide is no exception. It is the advertisers that hold the whip hand in a country with a small population, high illiteracy rate and low income per capita. 

Nationwide would not be immune to this.

Detractors and those bearing Nationwide ill will are pressing for this matter to be fully addressed. Some even claim that Nationwide is favourable to the present Government and now it is clear why.

In this febrile political environment with a general election due before September, some media houses have been put under the spotlight and have been accused of being agents for one or other of the two main political parties. Late last year, the Gleaner was said to be favourable to the PNP while the Jamaica Observer was said to be sympathetic and supportive of the JLP.

The same aspersions have been cast at Nationwide with PNP supporters claiming it to be an avowed supporter of the JLP administration and soft on Prime Minister Andrew Holness.

Cliff Hughes has done a great job with Nationwide over decades now. He established his own media house to compete against others with much deeper pockets. He is undoubtedly one of the best broadcast journalists in Jamaica and has remained so for some time.

Many notable media practitioners have served time in the Nationwide stable. Emily Shields, Miss Kitty Abka Fitz-Henley, Naomi Francis, Emprezz, and George Davis readily spring to mind.

Its board of directors have consisted at one time or other of some of Jamaica’s most notable business leaders such as the late Ryland Campbell, the late Captain Horace Burrell, Howard Mitchell, Fayval Williams, Ryan Reid of First Rock, William Mahfood of Wisynco and Jean Lowrie Chin.

Two years ago Amber Group, headed by Dushyant Savadia took a stake in Nationwide for an undisclosed sum. 

At this time it is yet to be determined what impact this tax obligation will have on the viability of Nationwide. It is a credible and necessary voice on Jamaica’s media landscape and it is hoped that it will go on to thrive for many years to come.

Nationwide would have paid its taxes consistently over the years so why would its tax records be leaked at this time? Is all this authentic? This is ominous for other Jamaican companies in that they can have their tax positions exposed to the public. Should the Jamaican tax department be so porous?

Will this encourage bad actors? 

All companies at one time or another owe taxes. This is the case the world over so it is not an unusual occurrence. Nationwide can hardly be singled out and castigated here.

Back in 2021 at least 55 of the largest corporations in the United States paid no federal income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the United States. This was found to be a decades-long trend.

In 2020 there were US$8.5 billion in corporate tax avoidance and US$3.5 billion in rebates according to the Institute on Taxation and Economic Policy (ITEP). USA Today reported last year that “major companies haven’t paid federal income tax in five years. How could that be?”

This was an article by Daniel de Vise. The article reads in part, and this is instructive: “Dozens of large corporations paid more money to their top executives than they shelled out in federal taxes between 20018 and 2022, according to a new watchdog report.

“The analysis names 35 corporations, including Tesla, Netflix and Ford, that each reportedly spent more on compensation to their five highest-paid executives than they paid in federal income taxes over five years.”

Collectively, the 35 corporations spent US$9.5 billion on their top executives over the span, the report said, while their combined federal tax bill came to-just$1.8 billion: a collective refund.

The report is titled ‘More for Them, Less for US: Corporations That Pay Their Executives More Than Uncle Sam’. It comes from the Institute for Policy Studies and American for Tax Fairness, a nonprofit advocating for progressive tax reform.

Last year it was disclosed that General Electric, General Motors, Meta, Tesla and T-Mobile combined paid hardly any income tax. Together, the five big corporations earned over US$70 billion in profits.

“Massive American corporations are rolling in dough but contributing very little of it back to the society that helps make their success possible,” said David Kass, Executive Director of Americans for Tax Fairness (ATF).