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THE tax authorities are reporting that tax compliance is on the rise as all major tax types can now be paid online.
Meris Haughton, director, communications of the Tax Administration Services Department (TASD) on Monday told the Business Observer that the improvement in service delivery, coupled with the increased enforcement actions are resulting in more companies and individuals paying their taxes.
She said persons usually shun the online process in favour of the walk-in counter because to them that was easier than paying some taxes online and some at the revenue collections agency. However, she said with the updated online system, even payroll deductions can now be paid on line.
"We have enhanced our services to make it easier for persons to pay their taxes. There is less paperwork and the information is automatically updated," Haughton said.
To utilise the online payment option payees must fill out and submit a one-time application form, which captures everything, including the signature of the payee, so that the Tax Department can verify the identity of the taxpayer in future filings. Haughton said the online method is as convenient as internet banking, making it even more attractive to taxpayers.
"Once they have applied for the online tax services they can view their account online as well," she said. This makes it easier to verify the transaction, which is updated automatically.
Jamaica was ranked as one of the 10 most difficult countries in the world to pay taxes in 2009, according to the Doing Business Report, 2010. The Report, a joint publication of the World Bank, International Finance Corporation and PricewaterhouseCoopers, points to reforms such as lowering the tax burden on businesses and simplifying the tax compliance processes by enabling electronic filing as ways to improve the tax process for the country ranked 174 out of 183 countries. Haughton said efforts are underway to improve this status. One such is the move toward the consolidation of payroll taxes which reduces the number of different filings a company must complete.
"To put that into context, the Report does not speak to the administration side of it," she said. "It speaks to the number of different tax types that persons have to deal with. It does not speak to the accessibility."
The tax compliance rate is also improving following the high profile seizure of assets reported in the media.
"Calls to the customer care centre increase whenever such occurrences come to public attention," she said. Recently, at least two entertainers have had their assets seized by the Special Enforcement Team (SET) of the tax department for non-payment of taxes. In one case, the asset was returned following the settlement of the obligation. Seizure of assets only occurs in "very chronic cases" of non-compliance when all other means of collecting have failed.
Haughton said there is an increase in the number of persons voluntarily making payment arrangements with the tax authorities whenever the seizures are made.
"More persons come to the tax department and enter into payment agreements with us," she explained. This is especially so for 'high profile' individuals. "Because you know of persons who are in that position what they do is to try and settle it so that it does not come to public attention," she explained.
However, despite the motivating factor that the glare of the media spotlight and public attention can have on encouraging delinquents to pay, the Tax Department is not allowed to seek media attention in cases of delinquency. Haughton said the Department is constrained by the law which aims to protect the privacy of the individual in such cases, unless it becomes a court matter, which is of public record. She said in some instances, the media is notified by members of the public who are on the scene when the seizure is taking place.
"Sometimes before even I am advised, persons from the media are calling me," she said.
According to Haughton, in some jurisdictions delinquents are publicly called out, which helps in the collection process. In California, for example, the tax authorities publish a list of each individual or company that has outstanding liabilities. However, Jamaican law does not yet allow for this type of enforcement.
http://www.jamaicaobserver.com/busin...evenue_7960174
Meris Haughton, director, communications of the Tax Administration Services Department (TASD) on Monday told the Business Observer that the improvement in service delivery, coupled with the increased enforcement actions are resulting in more companies and individuals paying their taxes.
She said persons usually shun the online process in favour of the walk-in counter because to them that was easier than paying some taxes online and some at the revenue collections agency. However, she said with the updated online system, even payroll deductions can now be paid on line.
"We have enhanced our services to make it easier for persons to pay their taxes. There is less paperwork and the information is automatically updated," Haughton said.
To utilise the online payment option payees must fill out and submit a one-time application form, which captures everything, including the signature of the payee, so that the Tax Department can verify the identity of the taxpayer in future filings. Haughton said the online method is as convenient as internet banking, making it even more attractive to taxpayers.
"Once they have applied for the online tax services they can view their account online as well," she said. This makes it easier to verify the transaction, which is updated automatically.
Jamaica was ranked as one of the 10 most difficult countries in the world to pay taxes in 2009, according to the Doing Business Report, 2010. The Report, a joint publication of the World Bank, International Finance Corporation and PricewaterhouseCoopers, points to reforms such as lowering the tax burden on businesses and simplifying the tax compliance processes by enabling electronic filing as ways to improve the tax process for the country ranked 174 out of 183 countries. Haughton said efforts are underway to improve this status. One such is the move toward the consolidation of payroll taxes which reduces the number of different filings a company must complete.
"To put that into context, the Report does not speak to the administration side of it," she said. "It speaks to the number of different tax types that persons have to deal with. It does not speak to the accessibility."
The tax compliance rate is also improving following the high profile seizure of assets reported in the media.
"Calls to the customer care centre increase whenever such occurrences come to public attention," she said. Recently, at least two entertainers have had their assets seized by the Special Enforcement Team (SET) of the tax department for non-payment of taxes. In one case, the asset was returned following the settlement of the obligation. Seizure of assets only occurs in "very chronic cases" of non-compliance when all other means of collecting have failed.
Haughton said there is an increase in the number of persons voluntarily making payment arrangements with the tax authorities whenever the seizures are made.
"More persons come to the tax department and enter into payment agreements with us," she explained. This is especially so for 'high profile' individuals. "Because you know of persons who are in that position what they do is to try and settle it so that it does not come to public attention," she explained.
However, despite the motivating factor that the glare of the media spotlight and public attention can have on encouraging delinquents to pay, the Tax Department is not allowed to seek media attention in cases of delinquency. Haughton said the Department is constrained by the law which aims to protect the privacy of the individual in such cases, unless it becomes a court matter, which is of public record. She said in some instances, the media is notified by members of the public who are on the scene when the seizure is taking place.
"Sometimes before even I am advised, persons from the media are calling me," she said.
According to Haughton, in some jurisdictions delinquents are publicly called out, which helps in the collection process. In California, for example, the tax authorities publish a list of each individual or company that has outstanding liabilities. However, Jamaican law does not yet allow for this type of enforcement.
http://www.jamaicaobserver.com/busin...evenue_7960174