Some 8,000 businesses have failed to pay over to the Inland Revenue Department income tax already collected from employees.

On Thursday, the Tax Administra-tion Services Department warned that penalties would fall on their heads if they fail to remit the funds owed.

The tax authorities tell the Financial Gleaner that some $4 billion of PAYE deductions have not been handed over to IRD by approximately 8,000 businesses, including companies, partnerships and sole proprietors.

Meris Haughton, spokeswoman for the TASD, said the funds represent accumulations over several years.

If the funds are not remitted, IRD will move to issue employers with 'Statement of Outstanding Balances'.

Businesses who hand over the funds by January 14 will not be penalised, said the TASD.

"However, this will not apply to cases currently before the court." the agency's release said.

Effective January 15, late payments will attract the applicable penalty of 50 per cent applied against the outstanding balance, and interest of 40 per cent annually.

The law requires PAYE deductions to be remitted to the IRD within 14 days.

business@gleanerjm.com