Government of Jamaica offers tax amnesty

 

The Government of Jamaica is hoping to claw back billions in unpaid taxes owed by nationals through its current offer of amnesty. Under the offer, taxpayers must pay all or a portion of their outstanding tax (excluding penalties) by 31 March 2025.

 The real sting in taxation, particularly in respect of GCT and Income Tax often does not stem from the tax owed, but from the overwhelming, suffocating accumulation of penalties, interest and surcharges (IPS) that arise from non-payment or late payment. These are deemed to be converted to actual tax owed in some cases.

The amnesty provides an opportunity to settle some tax debts by paying the original tax amount only, leading to the forgiveness of the IPS liabilities

. How the Tax Amnesty Works Taxpayers who pay their original tax arrears (excluding IPS) fully or partly by the deadline of 31 March 2025 (56 days from February 3, 2025) will receive full or proportionate cancellation of all IPS accrued on the outstanding amount and walk away with a renewed status of good standing, according to the offer which is being placed on the table.

 The tax types to which the amnesty applies are: - Education Tax - Pay As You Earn (PAYE) - Corporate Income Tax - Individual Income Tax - Special Consumption Tax - General Consumption Tax (GCT) - Asset Tax - Partnership Income Tax .

The National Housing Trust (NHT) has also announced an Amnesty for “qualified businesses”. However, details on the eligibility criteria appear to be limited.

All tax returns must be filed up to 31 March 2025, including GCT, Income Tax and PAYE. Any late filings for the 2024 Year of Assessment or the 2025 Period of Assessment must be resolved before the deadline.

Installment payments

Taxpayers may apply for installment payment plans to ease financial hardship but payment of principal tax or such portion must be settled by deadline in order to benefit from the amnesty. Taxpayers who pay their outstanding tax partially will receive a proportional waiver of IPS.

Taxpayers with objections, appeals or pending court matters can pay the undisputed principal amount and still qualify for the amnesty.

Taxpayers denied, partially granted or with pending write-off applications, whether due to bankruptcy, financial hardship or otherwise, are eligible to settle the principal amount and avoid prolonged uncertainty.

Taxpayers with formal payment agreements with TAJ may pay all or part of their remaining principal tax liability and still receive waiver benefits. . Taxpayers undergoing audits or investigations may be eligible for participation, subject to TAJ’s confirmation of the assessed sum and payment of the principal prior to the 31 March 2025 deadline.

The amnesty allows taxpayers to continue with objections or appeals even after payment, if the taxpayer so chooses. If the taxpayer’s appeal is successful, the taxpayer may seek a refund of the principal sum paid. However, there is no certainty as to the timeline for refunds.

Those who cannot afford to pay even a portion of their principal tax debt will not benefit as long-term payment plans (beyond 31 March 2025) are not available under this programme.

It is recommended that those considering participation in the programme for amnesty contact Tax Administration Jamaica to get a detailed statement of account showing principal tax, IPS accrued, and eligible tax types. This may be had from the on-line account from TAJ’s website.

The TAJ will also help in identifying eligibility for the amnesty.

Photo credit: nature-and-the-garden.com

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