Dear Claudienne:

I am a freelance writer with a master’s degree in heritage studies from the University of the West Indies (UWI) Mona Campus and currently employed by a national university. I am published in an academic journal and local newspapers.

Although I have been published for more than 10 years, it was not until 2013 that I became aware of the role of the Jamaican Copyright Licensing Agency (JAMCOPY) and became an affiliate. This organisation protects and manages the reproduction rights of its affiliates — that is, anyone published in journals, newspapers, or trade/general books. Additionally, JAMCOPY manages a ‘repertoire pool’ of funds which is equally divided among its affiliates.

When JAMCOPY’s financials were presented at its annual general meeting in 2014, they represented royalty payments for 2013 publications. Distribution of the 2013 payments commenced on December 8, 2014. Royalty payments for 2014 were made on December 7, 2015, and the payments for 2015 were made on December 5, 2016.

Accompanying these cheques were the respective statements outlining the breakdown for the payments. The statements specify that “…JAMCOPY has not deducted any personal income tax that might be payable on these royalties. You are therefore responsible for declaring this amount when you file your Income Tax Returns.”

Tax Administration Jamaica (TAJ) facilitates the payment of additional income from royalty payments (in the case of affiliates like myself who are full-time employees and already pay income tax through the Pay As You Earn system) via its “Self Employed Persons (SEP)/Individual – Self Assessed” process.

Although I filed my royalty payments for 2013 and 2014, a change in policy implemented by the TAJ with respect to 2015 returns has thwarted my efforts to proceed in filing the 2015 returns.

To my surprise, when I went to the Constant Spring Branch of TAJ on December 30, 2016, I was placed on the electronic system and subsequently informed that I am in arrears to the tune of $53,989.57 in relation to my cheque for $29,487.98. This is due to a new rule which took effect in January 2016.

According to the new policy, arrears for 2015 attract a monthly penalty of $5000.00. It seems that the TAJ is asking me to pay in January 2016 for what I did not know I earned in 2015.

The first time I became aware of my royalty earnings for 2015 was on December 5, 2016. How can I be expected to pay before I have earned?

I am hereby seeking your assistance as an arbitrator to have JAMCOPY approach Tax Administration Jamaica (TAJ) and the Ministry of Finance for a waiver for JAMCOPY affiliates, and a more equitable arrangement.

In preparation for my retirement, I am seeking to make a living from my intellectual capital. However, ‘everywhere you turn, macca juck yuh’.

It cannot be right that the Jamaican system is so organised that it punishes those who try to uphold the law. Is it that the Major Organised Crime and Anti-Corruption Agency (MOCA) will soon come knocking on my door?

It is of no consolation that effective March 29, 2017, the amount reported as owing in my TAJ account is $49,391.66.

Any assistance you can provide would be highly appreciated.

JF

Dear JF:

Tell Claudienne has been in communication with JAMCOPY about your concerns and your desire to have them approach TAJ and the Ministry of Finance for a waiver of their penalties for JAMCOPY affiliates.

JAMCOPY has advised us that they cannot apply for a waiver for an affiliate. However, since we contacted the agency, they have had detailed discussions with their auditors on the matter and have written to you.

In their letter to you, JAMCOPY has summarised the auditors’ recommendations. The agency has also told us that “they have approached the TAJ on the issue but do not know if there will be any change in the policy”.

JAMCOPY sent us a copy of the letter that they wrote to you with the recommendations for resolving the issue of TAJ penalties related to 2015 royalties. The letter reads as follows:

“ When you first made us aware, during the Annual General Meeting in February, 2017, that you had an issue with penalties applied by the TAJ on royalties from JAMCOPY, our auditors recommended to you that you write to the TAJ applying for a waiver, in light of the special circumstances.

Further to the AGM, we sought a formal response from the Auditors in order to assist you in rectifying the matter. We received their written response on June 12, 2017, and have enclosed a copy of their letter dated June 6, 2017 for your kind attention and information.

It is our understanding from our Auditors that penalties arose because in the Return that you filed, the year of assessment did not correspond with the year the royalty was actually received by you. Although the royalties were collected by JAMCOPY in respect of the year 2015, as they were not distributed to you until the year of 2016, it is 2016 and NOT 2015 that would be the year of assessment. This can be addressed by amending the tax return.

In summary, our auditors have recommended that you:

a) amend the relevant tax return appropriately and apply for a waiver

b) file returns based on earnings received in the corresponding year of assessment. Please keep this in mind for future filings so as to avert a repeat of this situation.

We are not able to apply for a waiver on your behalf; however, we are willing to assist you with any supporting documentation that JAMCOPY may reasonably disclose that will assist you in the process, and to this end we are in communication with the TAJ to facilitate a favourable resolution.

Finally, thanks again for bringing this issue to light. We trust that it will be rectified by your following the recommendations of the Auditors. If you encounter further difficulties in this regard, please do not hesitate to make us aware of them.”

We hope that the auditors’ recommendations will be helpful in the resolution of this matter.

All the best.

Have a problem with a store, utility or company? Telephone 936-9436 or write to: Tell Claudienne c/o Sunday Finance, Jamaica Observer, 40-42 1/2 Beechwood Avenue, Kingston 5; or e-mail: edwardsc@jamaicaobserver.com. Please include a contact phone number.