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Digicel, Tax Administration call truce

Published:Monday | May 14, 2012 | 12:00 AM

Mobile service provider Digicel and Tax Administration Jamaica (TAJ) have agreed to cooperate in an effort to complete an audit of the telecommunications firm's general consumption tax (GCT) compliance.

Two weeks ago, TAJ agents, supported by the police, swooped down on Digicel's offices in New Kingston to execute a search warrant.

The TAJ had said the operation was aimed at retrieving records and documents as part of an investigation to ascertain if the GCT paid by Digicel customers was being paid over in full to the tax authorities.

However, lawyers for the telecommunications company successfully applied for an injunction barring any further raids.

More dialogue

Following a series of meetings last week with representatives of the Ministry of Finance and the Ministry of Science, Technology, Energy and Mining, the parties agreed to have more dialogue on the issue.

The finance ministry said in a release yesterday that it regretted any appearance of heavy-handedness in the execution of the search warrant and added that the action was not meant to imply any judgement on Digicel as a corporate citizen.