TAJ to target people benefiting from multiple threshold exemptions
IF you have more than one job and have been getting income tax relief from all you could be in trouble if taxes are not paid on earnings above the threshold.
Tax Administration Jamaica (TAJ) said yesterday that it will be going after people with more than one job who benefit from the income tax threshold more than once in a given year.
The TAJ, in a release yesterday, said thousands of these taxpayers have been unearthed and identified by the recently implemented Revenue Administration Information System (RAiS), through its Discovery module.
“Where a taxpayer has multiple sources of income, he/she has an obligation to file a personal income tax return, reporting his/her total income earned, tax payable, withholding tax and any tax liability for the year of assessment. This programme, which is aimed at standardising such anomalies, has two main objectives. Firstly, to assess any additional taxes that may be due arising from the taxpayer’s employment information presented, including statutory deductions, and secondly, to educate them on their entitlement to one threshold per year of assessment as well as their obligation to report and declare income from more than one employer,” the release said.
The affected taxpayers, said the TAJ, will receive letters from its audit team outlining their current tax status. “As is customary, the taxpayer will be afforded an opportunity to make a payment arrangement which may be facilitated through the tax payment portal at www.jamaicatax.gov.jm.
“The programme, which is currently under way, is expected to continue into the next financial year and is one of several compliance strategies being employed by the revenue authority,” said the TAJ.
The income tax threshold was on July 1 last year increased from $592,800 to $1,000,272, partially fulfilling a Jamaica Labour Party election promise to raise it to $1.5 million. It will, however, be increased in April this year to the promised $1.5 million.
Workers earning $1,000,272 or less pay no income tax, but if a worker earns from a second or third job and earnings are in excess of the threshold he/she is expected to pay income tax on amounts above.