New tax rules for charitable organisations July 15
Charitable organisations are being warned that they could be asked to pay more than three times the duties payable on imports if they are found to have breached the rules granting tax relief.
The warning comes as the finance ministry outlines new arrangement for the Tax Treatment of Approved Charitable Organisations.
The ministry says following the recent passing into law of the Charitable Organizations (Tax Harmonization) (Miscellaneous Provisions) Act, 2013, charities will no longer be required to apply to the Minister of Finance for tax relief.
It says this will be administered by the Jamaica Customs Agency and the Tax Administration Jamaica (TAJ), effective July 15.
This is an interim arrangement until the Charities Law is enacted later this year.
The finance ministry says other organisations that do charitable works, but have not been designated as an Approved Charitable Organisation by the Commissioner General of the TAJ, should take the steps necessary to become compliant.
Otherwise it says such groups should seek to work with an Approved Charitable Organisation.
The ministry is warning that the Jamaica Customs Agency and the Tax Administration Jamaica will execute post-audits from time to time.
It also says the appropriate remedies and penalties will apply where it has been determined that an Approved Charitable Organisation, which has benefited from a tax relief, is operating contrary to the provisions of the tax laws.
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