Opposition raises concern on dividend tax

[Lazie]

The Opposition is raising more concerns about the imposition of taxes on dividends.

The Opposition Spokesman on Industry & Commerce Mark Golding said the Government is now taxing preference dividends.

The finance minister did not announce the taxing of preference dividends in his budget presentations.

Senator Golding said there was no stakeholder consultation before the measure was imposed.

He said this development is a shock to thousands of investors in Jamaica who hold preference shares issued by several companies.

Senator Golding also said it will hurt investors who purchased the shares with the expectation that the dividends would not have been taxable.

He said the Opposition is not against the principle of imposing a tax on preference dividends.

However according to Senator Golding, introducing a new tax measure in a way which changes the value of the existing shares, undermines investor confidence.

Yesterday, we reported that Senator Golding was also concerned about the Government’s decision to tax the dividends of persons overseas who invest in Jamaican companies.

http://go-jamaica.com/news/read_article.php?id=10506

[Peter R]

Isn't that double taxation? Assuming the dividends are paid out after tax by the corporations. Oh well, govt have to make money somehow, anyhow.