$39.4 Million Allocated For Business Tax Reform Project

The project, being implemented by Tax Administration Jamaica (TAJ), aims to improve the regulatory, institutional, and administrative framework for business taxation, by reforming the tax appeal process and legislative framework.

Work commenced in February 2014, and it is envisaged that when completed in 2016, the project will facilitate simplification of the business tax process by customizing the tax design and reviewing the taxation legislation for small and medium enterprises (SMEs); and conducting a compliance cost survey to improve procedures for the payment of taxes collected, among other engagements.

The project’s completion is also expected to improve the tax appeals and dispute mechanism.

This, by supporting development of a case management system, and establishment of a framework for case profiling and review of procedures; providing input to the ongoing legal reform process, consistent with the proposed Revenue Appeals Division Act; and developing a targeted communication strategy for appeals and dispute mechanisms.

Achievements, to date, include: tabling of the Revenue Appeals Division Bill in Parliament and submission of draft recommendations to the Chief Parliamentary Counsel; recruitment of a consultant to conduct the compliance cost survey; revision of the revenue appeal process flow; and completion of the communication strategy and provision of training.

Anticipated targets for 2015/16 include: embarking on the tax simplification process, through a $17 million allocation, to undertake the cost compliance survey, and using the results to map procedures for improved tax collection payments.

Additionally, increasing compliance among SMEs by hosting workshops for clients and private sector interest groups to help guide the reform process, and conduct a sector profit margin analysis, for which $14 million has been earmarked.

Further, undertaking an outreach and education programme, targeting appeals process automation, content management computerization, and public education at a cost of $7.3 million.

Project funding is being provided by the Government of Jamaica and International Finance Corporation of the World Bank.