The March 15 Income Tax filing deadline is just a few weeks away and business operators should be completing preparations to submit their final Income Tax Returns for 2012 and Estimated Returns for 2013. While filing tax returns are important, business operators are also reminded that it is critical for them to keep records of their business activities, such as sales receipts, purchases invoices, payroll records, utility bills, transportation expenses, rent receipts, bank statements and all other business and administrative expenses.
Although business persons are not required to submit supporting records along with their Income Tax Returns, it should be noted that under the Income Tax Act they are required to maintain proper records, in English, for a minimum of six (6) years. The records should then be made available to the tax authority, if the person’s income tax return is selected for an audit or if they are asked to verify their income or expenses. This is necessary as Jamaica, like many other tax jurisdictions, operate a self-assessment system. It is through periodic examination of records that a tax authority is able to verify the accuracy of a return filed by a taxpayer.
No comments:
Post a Comment