THE GOVERNMENT is to amend two pieces of legislation to allow for the implementation of a tax debt arrears management system.
Minister of Finance Dr Peter Phillips has said when implemented, the Tax Administration of Jamaica will be able to write off taxes which are deemed uncollectable.
"Like a bank or business, you reach a point where if you have something on the book and you have not collected for three, four, five years, and you have not collected and you deem the debt to be uncollectable, then allow them to write it off, subject to the appropriate approval," Phillips said.
The decision by the Cabinet, which was communicated by minister with responsibility for information, Sandrea Falconer, will see amendments to the Tax Collection Act and the Revenue Administration Act.
Dr Phillips said if a debt arrears management system is not put in place, it will result in tax authorities having "an unrealistic notion of what is collectable".
He said when this happens, resources are diverted to the collection of funds which cannot be collected.
"It is really to modernise tax collection, in particular. You have a situation where there is a numerically large group of taxpayers who have amounts, very small amounts in many instances, which are an overhang. What the tax authorities want to be able to do is to clear out of their books those things that are not collectible and focus their attention on monies which are collectible, some of which represents large amounts," the minister said.