THE Tax Administration Services Department (TASD) is reporting a J$8-million increase in taxes collected from small, informal businesses in 2010.

Meris Haughton, director, Communications, the TASD, told Caribbean Business Report on Wednesday that the increase came as a result of the Special Taxpayer Service Programme (STSP) which saw 2,756 taxpayers, including 692 new taxpayers, making use of the service to prepare their income tax returns in 2010.

“Approximately J$3.6 million more in taxes were collected from these new taxpayers during the 2010 STSP,” Haughton said. “An additional $4.4 million in taxes were collected during the year via payment arrangements,” she added.

The annual STSP provides guidance to small business operators such as shopkeepers, taxi operators, dressmakers, farmers and hairdressers, on how to prepare their Income Tax Returns. The deadline for filing these returns is March 15 this year and the Programme is currently underway across the island to assist the small businesses with their returns.

Haughton said taxpayers in rural parishes have responded well to the STSP, now in its ninth year. “Taxpayers in the parishes of St Elizabeth, Manchester, St Catherine and Clarendon respond more readily to the STSP,” Haughton said. “These taxpayers rely more on the services of the STSP as against paid accountants and tax preparers.”

The TASD is hoping that the trend continues as more informal business operators make use of the service that allows them to regularise their tax payments. Haughton said the department hopes to increase the number of new taxpayers, and the amount collected in 2011 as well. She said the Tax Department hopes to have at least 1,384 new taxpayers from the programme this year, and a 25 per cent, or $7-million increase in collection.

Haughton noted the importance of the STSP in increased tax collection and better relationships with taxpayers. “It is very important to our smaller taxpayers. This programme provides assistance to primarily small business operators for preparing their income tax returns and fulfilling their tax obligations at no cost to them,” she said. “As an educational outreach strategy, the programme also allows tax agents to develop and maintain a relationship with taxpayers, by answering queries and providing tax and tax related information in addition to educating taxpayers on their rights and responsibilities.”

During the period leading up to the March 15 Income Tax deadline the Tax Department will have over 200 tax help sessions at tax offices, civic centres, church halls, school auditoriums, branch libraries, court houses and other locations across the island.

Representatives from the Inland Revenue, Taxpayer Audit and Assessment and the TASD will sit with individuals and small business operators to help them prepare their tax returns.

The TASD is encouraging self-employed persons and operators of small businesses who wish to use the service to take along their business documents, such as their Taxpayer Registration Number (TRN), bank statements, purchase invoices, expense receipts, sales records, utility bills and any other records that can be used to verify their income and expenses.

STSP sessions will be held at the Tax Collectorates in the respective towns up to March 10 or March 15. Details of all venues, dates and times for the sessions are available by contacting the Tax Administration customer care centre at 1-888-TAX-HELP (1-888-829-4357), the Tax Offices, or logging on to www.jamaicatax.gov.jm.