Proposed increases in Income Tax penalties
published: Friday | March 14, 2003

IN KEEPING with the government's thrust to take additional tax measures for fiscal year 2002/2003, we understand that the penalties for certain breaches of the Income Tax Act are being revised.

The new penalties will take effect upon the issue of the relevant Gazette. The Minister of Finance & Planning has proposed the following revised penalties:

OFFENCE AND PROPOSED PENALTY

• Failure to deliver declaration of estimated income tax by March 15, and failure to comply within 30 days after service of notice by Commissioner. ­ Fine increased to $10,000.00 and $1,000.00 for each day default continues.
• Failure to file returns ­ Fine increased to an amount not exceeding $20,000.00.
• Failure to file return of trades carried on by two or more persons jointly. ­ Penalty increased to $10,000.00
• Official disclosing information to unauthorised persons. ­ Increase fine to an amount not exceeding $100,000.00 or to imprisonment for a term not exceeding 12 months. Failure to certify information re connected persons or wilfully gives a false certificate. Increase to $20,000.00 or 12 months.
• Changing of residence to outside Jamaica, etc., by bodies corporate without Minister's consent. ­ Increase fine to $40,000.00
• Failure to deliver notice stating the circumstances in which income arose to husband or wife. ­ Increase fine to $10,000.00 or term not exceeding 12 months.
• Failure to give notice of income in excess of $100,464.00.­ Increase penalty to $5,000.00.
• Failure of person to comply with notice served on him by Commissioner to file return. ­ Prosecution being pursued under Section 68. Increase penalty to $10,000.00.
• Knowingly and wilfully aids and abets, incites, etc., another person to make or deliver false or fraudulent account, statement, etc., of or concerning any profits, etc. ­ Fine not exceeding $100,000.00 or term not exceeding 24 months.
• Refusing or neglecting to give evidence or produce records in pursuance of a notice served on him (in relation to section 75 (5) (b) and Section 91 (1)) ­ Increase fine to $10,000.00 (in relation to both sections).
• A responsible officer failing to notify Collector within fifteen days after end of month, or outstanding balances pursuant to the Regulations. ­ Fine not exceeding $10,000.00 or term not exceeding 12 months and $1,000.00 daily for continuing offence.
• Failure to comply with provision of the regulations requiring furnishing of returns or other information, etc. ­ Fine not exceeding $10,000.00 and if continued a further penalty of $1,000.00 daily.
• Knowingly making false statement or representation. ­ Fine not exceeding $100,000.00 or term not exceeding 5 years.
• Aids and abets, incites another person to make false returns, etc., or keep or prepare false accounts, statements concerning any profits. ­ Fine not exceeding $1000,000.00or term not exceeding 24 months.
• Person by himself or by any person in his employ, obstructs, molests or hinders an income tax officer in the execution of his duty. ­ Increase fine to $50,000.00 or term not exceeding 12 months.
• Any offence to which no specific penalty is provided. ­ Increase fine to $10,000.00 or term not exceeding 12 months.
• Refusing to allow a deduction of tax to be made out of any payment. ­ Increase fine to $5,000.00.
• Failure to notify the Commissioner of transfer of machinery before three years which is subject of the grant of a special capital allowance. ­ Increase penalty to $10,000.00 plus three times the amount of special capital allowance granted.

More Business