Durrant Pate/Contributor

Three companies have collectively been fined J$20 million in fines for breaching section 56 (5) of the General Consumption Tax (GCT) Act. 

New Panda Food Limited, Bodyscape Rejuvenation Centre Limited and Castillo Funny Club Entertainment were prosecuted by Tax Administration Jamaica (TAJ) through its Intelligence, Investigation and Enforcement Unit (IIEU) and legal team. 

The breach arises from the fact that the companies were collecting GCT when they are not registered to do so. Section 56 (5) of the GCT Act states, “a person, not being a registered taxpayer, who collects tax, commits an offence and is liable on summary conviction in a Resident Magistrate’s Court to a fine not exceeding five million dollars or to imprisonment for a term not exceeding twelve months or to both such fine and imprisonment.”

The court was informed by TAJ that during the period February 28 and March 12 this year, New Panda Food unlawfully collected GCT from its customers while not being registered so to do. Consequently, two charges were brought against New Panda. 

Plea mitigation 

On July 23, New Panda Food, by way of its director, Dong Wang, pleaded guilty to both counts in the Sutton Street Tax Court in Kingston. Counsel representing the company stated that, as part of its plea mitigation, New Panda Food, which started in 2023, was given bad advice and has since been registered. 

The company was sentenced to a total of J$1 mllion and failure to pay the fine would result in the director facing 60 days imprisonment.  Regarding Bodyscape Rejuvenation Centre, the court heard that on February 26 and March 8, the entity, located at Mannings Hill Road in St. Andrew, unlawfully collected GCT from its customers while not being a registered taxpayer. 

Bodyscape Rejuvenation was charged with two counts of collecting GCT, due to the fact that they were not registered to do so. The company, through its director, Chantelle-Lee Barrett, pleaded guilty on July 23 to the offences in the Sutton Street Tax Court in Kingston. 

Fines paid

The company was fined J$3 million for the offences. Failure to pay would result in the director facing 90 days’ imprisonment. The fines were subsequently paid. Montego Bay businessman, Wellington Amarico Castello Guerro trading as Castillo Funny Club Entertainment, pleaded guilty in the St. James Parish Court to 12 breaches of Section 56 (5) of the GCT Act for collecting GCT without being registered. 

The court was told that during the auditing process anomalies were discovered by the audit team, which uncovered significant underreporting. The matter was subsequently reported to the Intelligence, Investigation and Enforcement Unit (IIEU). 

TAJ, through its legal unit, told the court that for the years 2020 to 2022 the taxpayer provided entertainment services for several hotels in St. James and Trelawny. It was further stated that he collected approximately J15 million in GCT whilst being an unregistered taxpayer. 

J$17 million in fines

The taxpayer was fined J$17 million for twelve offences. Failure to pay would result in six months in prison. The fine was subsequently paid. TAJ is therefore reminding all business operators and self-employed individuals that registration for GCT is mandatory once their taxable turnover exceeds the threshold of J$15 million annually. 

Additionally, taxpayers who collect taxes on behalf of the Government are legally obligated to remit those funds in full and on time. TAJ reiterates that it will use the law to address tax evasion and fraudulent activity.