Income Tax, which is tax paid on income earned, is one of the country's main sources of revenue. It is important that tax payers submit their income tax returns and pay the relevant taxes by March 15 as these funds provide the necessary income for Government to finance its expenditure on such services as education, health care, roads, national and social security.The Taxpayer Audit and Assessment Department (TAAD) and the Inland Revenue Department (IRD) administer the Income Tax Act. Their responsibility is to ensure that all requirements of the act are adhered to and that tax payers pay their fair share of taxes no more, no less.
WHO MUST FILE A RETURN?
Self-employed individuals (including partners)
Employed persons with other sources of income
Companies
Partnerships and other
bodies.
HOW DO I KNOW IF I SHOULD
BE FILING RETURNS?
Every individual whose income for the last year of assessment (2005) exceeds $144,768 should file.
A person in employment with no other source of income whose tax is deducted by an employer under the pay as you earn (PAYE) system and whose name appears on their employer's annual return (IT06) due January 14 need not file.
WHEN SHOULD I FILE
MY RETURN?
All companies, self-employed individuals, other bodies and employees with other sources of income must file an income tax return for the previous year and also indicate the estimated income tax for the current year by March 15.
This estimated income tax should be paid quarterly to the Collector of Taxes, Inland Revenue Depart-ment, by March 15, June 15, September 15, and December 15.
SHOULD I STILL SUBMIT AN INCOME TAX RETURN EVEN IF MY BUSINESS SUFFERS A LOSS?
Yes, an income tax return should be filed even if your business suffers a loss. The tax liability in this case would be nil.
WHAT HAPPENS IF I AM LIABLE AND FAIL TO FILE MY RETURN?
The commissioner (TAAD) may send you an estimated assessment inclusive of penalty. The commis-sioner (IRD) may issue a court summons for the return. The court may fine you an amount not exceeding $10,000 for each outstanding return.
You may get additional
information about income tax by calling 1-888-TAX-HELP.
(1-888-829-4357) or visiting the website at www.jamaica tax.gov.jm
