KINGSTON, Jamaica — Eleven used car dealers were ordered to pay taxes on over $4 billion in profits after the Tax Administration Jamaica (TAJ) successfully prosecuted them.

The companies were charged after investigations revealed that, despite importing and selling hundreds of motor vehicles between 2020 and 2023, they filed nil ($0), reporting no income in their company income tax returns.

Following the ruling, TAJ said it is reinforcing the importance of honest and accurate income tax reporting.

The matters were heard in parish courts across Kingston and St Andrew, Manchester, Clarendon, St Catherine, and St Mary.

All companies pleaded guilty, resulting in fines totalling over $12.2 million.

Following the court proceedings, the companies filed 32 amended income tax returns for the years 2020 to 2023, declaring gross income of just over $4 billion, a significant increase from the nil ($0) income previously reported, TAJ said.

The companies brought before the courts were Nostaw Limited, Karstarz Ballards International Ltd, Ballards International Ltd Automotive Limited, Auto Occasions Limited, Amalya Auto Ltd, Phillip Rankine Auto Links, Kiffin Auto Sales Company Limited, Walk In Drive Out, Videle Imports Limited, B & M Essential Limited, and Chosen Motors Works Limited.

The prosecutions stemmed from investigations conducted by TAJ’s Intelligence, Investigation and Enforcement Unit (IIEU), with legal guidance from TAJ’s Criminal Litigation Unit.

Charges were laid pursuant to Section 99 (1) of the Income Tax Act (ITA), which makes it an offence for any person who, for the purpose of obtaining any allowance, reduction, rebate, or repayment of income tax, knowingly makes a false statement or representation in any return, declaration or document delivered under the Act.

A first offence carries a penalty of a fine of up to $2 million and, in default of payment, imprisonment for a term not exceeding one year.

With the income tax filing deadline approaching, TAJ is now reminding all taxpayers, particularly businesses, that the deliberate failure to declare correct income, profits or gains with the intent to defraud the revenue is a serious offence under the Income Tax Act.

TAJ is encouraging taxpayers who may have made errors or omissions in previous filings to take immediate steps to correct them and to seek guidance through TAJ’s customer service channels to ensure full compliance with the law.