Durrant Pate/ Contributor

Tax Administration Jamaica (TAJ) is reporting the successful prosecution of 11 used car companies that falsely filed nil income tax returns over multiple years while actively conducting business.

The 11 are Nostaw Limited, Karstarz Balards International, Balards International Automotive, Auto Occasions, Amalya Auto, Phi lip Rankine Auto Links, Kiffin Auto Sales, Walk In Drive Out, Videle Imports, B & M Essential, and Chosen Motors Works. The companies were charged after investigations revealed that, despite importing and selling hundreds of motor vehicles between 2020 and 2023, they reported no income in their company income tax returns. 

The matters were heard in parish courts across Kingston and St. Andrew, Manchester, Clarendon, St. Catherine, and St. Mary. All 11 companies pleaded guilty, resulting in fines totalling $12.25-milion. Following the court proceedings, the companies filed 32-amended income tax returns for the years 2020 to 2023, declaring gross income of just over four billion dollars.

The prosecutions stemmed from investigations conducted by TAJ’s Intelligence, Investigation and Enforcement Unit (IIEU) with legal guidance from TAJ’s Criminal Litigation Unit. TAJ is reinforcing the importance of honest and accurate income tax reporting, following the successful prosecution of eleven used car dealer companies that falsely filed nil ($0) income tax returns over multiple years while actively conducting business. 

The charges were laid pursuant to Section 99 (1) of the Income Tax Act (ITA), which makes it an offence for any person who, for the purpose of obtaining any allowance, reduction, rebate, or repayment of Income Tax, knowingly makes a false statement or representation in any return, declaration, or document delivered under the Act. A first offence carries a penalty of a fine of up to $2-million and, in default of payment, imprisonment for a term not exceeding one year. 

TAJ is reminding all taxpayers, particularly businesses, that the deliberate failure to declare correct income, profits, or gains with intent to defraud the revenue is a serious offence under the Income Tax Act. Filing accurate returns not only supports national development but also helps taxpayers avoid penalties, fines, and legal action.

TAJ is encouraging taxpayers who may have made errors or omissions in previous filings to take immediate steps to correct them and to seek guidance through TAJ’s customer service channels to ensure full compliance with the law. Individuals who need assistance may contact TAJ’s Customer Care Centre at 888-TAX-HELP (888-829-4357) or email [email protected].