Minister of Finance and the Public Service, Dr. Nigel Clarke has committed to greater transparency in the tax arrears write-off system after reports of a lack of transparency. Several companies have been given write-offs since 2014. However, the Ministry of Finance (MOF) and the Tax Administration of Jamaica (TAJ) has failed to publish their names as mandated under the law.
Two hundred and fifty billion dollars in uncollectible taxes have been written off from several businesses across the island in the financial year 2014/15.
Dr. Clarke says these would have been arrears as at 2010. Majority of the write-offs were given to small and medium sized businesses large companies. But, thirty billion dollars was written off for large companies.
Under the law, the Commissioner General of Tax has the responsibility to issue tax write-offs based on a set criteria which includes whether the entity still exists, its director’s location and proof that it has assets among other things.
But there have been reports of lack of transparency surrounding the tax arrears write-off system. One issue reported is the very companies that receive the incentive as well as the lack of scheduled publication of the list of companies that have been given write-off.
The Finance Minister says it takes a lot of resources to publish the names and he is committed to addressing the issue. He says the information will be available in electronic form on the TAJ and MOF websites.
The Minister was speaking on CVM LIVE’s Panel Discussion on Thursday, October 8.
Jamaila Maitland reports:
