Durrant Pate/Contributor

Tax Administration Jamaica (TAJ) is reminding taxpayers that its Special Arrears Settlement Programme will end next Monday (March 31). 

This means that the window is closing for individuals and businesses to take advantage of the offer to reduce or eliminate their interest, penalties and surcharges (IPS), by getting a waiver once they have paid on the outstanding principal and filed the related tax returns.

The initiative, which has yielded over J$6 billion in collections so far, is designed to provide an opportunity for all persons and businesses, whether self-employed, company or organisations to clear their debts, without the additional costs typically associated with late filing and payments related to several tax types and become compliant. 

Settle arrears to have IPS waived 

Taxpayers with outstanding principal amounts for the select tax types: education tax, corporate income tax, Individual income tax, Pay As You Earn (PAYE), Special Consumption Tax (SCT), general consumption tax (GCT), asset tax and partnership income tax will have the opportunity up until March 31 to settle arrears, and have the IPS waived by the same percentage that the outstanding principal is paid. 

Taxpayers are advised that this waiver offer also relates to withholding taxes associated with Income Tax payments. Additionally, income tax filers who have not yet filed their final return for 2024 will have the benefit of having the J$5,000 late filing fee waived, along with any IPS once the return is filed and payments are done by March 31. 

GCT taxpayers are reminded that in order to benefit from the programme, they must submit a written waiver application, as required by law. GCT Taxpayers with no outstanding principal owing, but have IPS balances on record, are also required to apply formally to benefit from the offer. 

Restrictions to initiative

Individuals and businesspersons are required to be current with their filing obligations. Additionally, the programme is restricted to outstanding principal tax up to the Year of Assessment 2024 and the Period of Assessment (January and February 2025). Taxpayers with cases currently under objection and appeals will also qualify for the waiver if the principal taxes have been paid. 

It should be noted that this could be before or after a decision or agreement on the amount determined on the objection or appeal. Taxpayers wishing to take advantage of the programme are encouraged to contact TAJ to arrange to pay off the principal arrears by the March 31 deadline. 

This includes taxpayers who may have operated and closed businesses before, or employed to more than one employer at any given time. For its part, TAJ has also been identifying and contacting taxpayers who can benefit from the programme.

In addition to web messages sent to taxpayers, to date, compliance officers have made over 20,000 calls to outline the programme and guide persons on their options. TAJ is cautioning non-compliant taxpayers, that the authority will be ramping up its compliance and enforcement activities in the new financial year. 

These actions will include a raft of strong measures to recover outstanding obligations beyond March 31. Taxpayers are therefore urged to make every effort to utilize the Special Arrears Settlement Programme to clear or reduce their debts with TAJ.