TAJ expects payroll reforms to boost business ranking - Business - Jamaica Gleaner - Sunday | December 2, 2012

TAJ expects payroll reforms to boost business ranking - Business - Jamaica Gleaner - Sunday | December 2, 2012:

Progress on the amalgamation of statutory tax filings and other reforms are expected to further boost the island's ailing ranking in the forthcoming global Doing Business Report 2014, the tax department stated.

Employers can now file a single payroll annual return, amid other reforms on tax remittance.

"Although this is already in effect, the Doing Business report has not reflected this change based on the reporting period used. Further, the availability of online payment/filing options were not taken into consideration in the Doing Business report, due to the uptake being less than 50 per cent," said Meris Haughton, communications director at Tax Administration Jamaica (TAJ).

Haughton added that the TAJ is, however, "strategising" to improve the usage of its website.

Jamaica ranks among the worst places to pay taxes, which hurts the island's ability to conduct business, according to the 2013 Doing Business report published in October.

Jamaica dipped two spots to rank 90 in the 2013 report despite improvements to its tax and customs procedures. Jamaica ranked 163rd in terms of paying taxes, as some 45.6 per cent of profit is paid out as total taxes; over 368 hours spent annually paying taxes, and some 36 payments required per year.

TAX RANKING IMPROVING

However, the tax ranking showed improvement year on year up from 172nd in the 2012 report. The improvement resulted in the report commending Jamaica for its tax reforms.

"We are fairly satisfied with our improvement in the paying taxes subranking of the Doing Business report, based on how the assessment is conducted and the year under review (2011)," Haughton said. "However we are of the view that the time indicated in the report to pay taxes should be shortened given the significant reduction in the number of payments," she said.

Jamaica's tax improvement still trails advancements made by other countries globally, and Haughton admitted that policy and culture continue to hinder further improvements.

"Lack of money is not necessarily the largest constraint. Some of the issues are policy related and tax reform could positively impact the result. We also need to effect a cultural shift, to encourage more persons to utilise available online options, rather than visiting the tax offices," she said.

steven.jackson@gleanerjm.com

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