Tax Administration Jamaica (TAJ) has sought to explain its leasing arrangements following a damning Auditor General’s report that unveiled it has racked up nearly half-billion dollars in lease payments for properties not in use.

The report raised concerns about the costs associated with leasing properties in Mandeville, Manchester, and Annotto Bay, St Mary.

TAJ on Wednesday, March 27, says the arrangements were made in accordance with Government of Jamaica (GOJ) Procurement Policies, which mandate the establishment of a lease before commencing the procurement process for technical services and renovations.

Mandeville, Manchester

TAJ says its aim is to establish a one-stop-shop Revenue Service Centre (RSC) in Mandeville to consolidate tax services currently dispersed across multiple locations, but faced delays in the procurement process and ongoing renovations have hindered the project’s completion.

The lengthy procurement process, including the selection of a consultant and build-out contractor, has contributed to the extended timeline.

The procurement process for the Mandeville RSC involved multiple stages, including selecting a consultant to manage the project and obtaining Cabinet approval for renovations. However, delays occurred due to various factors, including the addition of contractors after the expression-of-interest phase.

Annotto Bay, St Mary

In Annotto Bay, TAJ identified a former bank building as an ideal location to relocate the tax office due to its amenities and suitability for the community’s needs.

The leasing process and subsequent retrofitting of the space faced delays, but progress has been made towards opening the new location.

The process involved conducting inspections, valuations, and negotiating leases before initiating renovations. Despite encountering setbacks, such as changes to the space’s layout, TAJ says efforts are advanced for completing the build-out and opening the new office.

Current Status

The existing Annotto Bay Tax Office has been closed since a 5.6-magnitude earthquake rendered it unsafe for occupancy. However, TAJ has leased a new space and efforts to engage a contractor for renovations are underway.

It is projected that the new office will be operational in the second quarter of the 2024/25 fiscal year.