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Companies joining Junior Market for tax break, a non-issue – JSE boss

Published:Friday | October 21, 2016 | 10:24 PM
Street Forrest further explains that all the other tax obligations of the listed companies remain in place.

The head of the Jamaica Stock Exchange (JSE) is criticising suggestions that companies are seeking to avoid taxes by joining the Junior Stock Exchange, saying a tax break is an obvious benefit of listing.

The Lower House this week debated and passed an amendment to reintroduce tax incentives for listing on the junior stock exchange, which were phased out by the previous administration.

The amendment will see companies on the junior market again enjoying five years free of corporate income tax and another five years in which they pay only half.

Opposition spokesman on finance Dr Peter Phillips had declared that some companies are using the junior stock exchange to avoid paying taxes as he was not convinced their main goal for listing was raising capital.

However, General Manager of the JSE, Marlene Street Forrest, has suggested it’s a non-issue, given that the tax incentive is an explicit benefit.

 

General Manager of the Jamaica Stock Exchange Marlene Street Forrest

Street Forrest further explains that all the other tax obligations of the listed companies remain in place.

She says the earnings flow back in other ways to the Government.

 

General Manager of the Jamaica Stock Exchange Marlene Street Forrest

Street Forrest was speaking on Real Business on Power 106 FM this morning.