Tax Administration predicting increase in tax collections

BY ALICIA ROACHE Observer staff reporter roachea@jamaicaobsever.com

Friday, March 12, 2010

THE Taxpayer Administration Services Department (TASD) is predicting an increase in the level of tax collections this year.

"The figures are not yet tabulated, but we are expecting an increase in collections over last year," Meris Haughton, the director of communications and taxpayer support services said in response to queries from the Observer. She said the tabulation will be done at the end of the month, following the March 15 deadline.

The increase this year would continue a trend from 2009, when the TASD reported a 35 per cent increase in new taxpayer compliance. Of the 1,200 persons processed last year as part of the department's Special Taxpayer Service Programme (STSP), 420 were new taxpayers, the department reported earlier this year.

The STSP programme targets self-employed individuals and business operators, partners and other bodies, and employed persons with additional sources of income to prepare their tax returns through the service and file their annual income tax return for 2009 and declaration of estimated income and tax payable for 2010. More than 200 free sessions of the service were scheduled this year at tax offices, civic centres, church halls, school auditoriums, libraries, courthouses and other locations across the island.

Additionally, the TASD has been running a comprehensive advertising campaign in the media encouraging persons to file their tax returns before the deadline. Haughton says based on feedback from the customer care centre of the TASD, there has been a positive response to the notices, with the calls relating to income tax increasing.

"There is a general mix of persons responding, particularly small business operators. We would like to see more employed persons with additional sources of income and professionals filing," Haughton said.

The STSP free sessions can save persons between $20,000 and $70,000 in fees for similar services at an accountancy firm. While some have opted to use an accountant, as indicated by reports of increases in the number of new clients at some firms, Haughton says the free service is still available as a means of encouraging persons to file voluntarily and to make the process of filing easier.

"We are not at liberty to advise persons to use or not use an accountant. What we have done is to provide a free alternative to small businesses and individuals to assist them to complete the forms," she said.

The TASD has advised that failure to file income tax returns by March 15 is a breach of the Income Tax Act and may lead to the tax authorities issuing an estimated assessment to a party, or other enforcement or court action being taken.

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Tax Administration predicting increase in tax collections