Several persons form a line at the Constant Spring tax office on the final day for tax payments, March 17. - File

The tax department's amnesty programme that initially waives all penalties and interest on tax arrears has, to date, yielded more than $1.5 billion for the treasury.

But, given the tax departments' target of $20 billion under the amnesty programme, the take up to date is well shy of the $3 billion monthly average collections needed to hit that mark.

New schedule

To propel the non-compliant into action, the Tax Administrative Services Department (TASD) issued a reminder that the window for the 100 per cent waiver is open for only four more weeks and has set a new schedule for workshops to help taxpayers make good on their liabilities.

The six-month programme ends October 31, but the level of debt forgiveness wanes as time advances.

For example, taxpayers who clear their arrears by June 30 get a 100 per cent write-off of penalties and interest.

Taxpayer to foot 80%

Beyond that date, the waiver drops to 80 per cent of the assessed taxes if paid by July 31; 50 per cent if paid by August 31; and 40 per cent by September 30.

In the final month, Inland Revenue will only write off 20 per cent, leaving the taxpayer to foot 80 per cent of the assessed principal, interest and penalties.

The $1.5 billion collected to date by revenue agencies islandwide represent weekly inflows of just over $214 million since the programme's April 10 announcement.

It's a minor portion of the $138 billion that Finance Minister Audley Shaw said was owed, and well shy of the $50 billion that represents actual principal owed.

'Positive response'

Notwithstanding, the TASD says the collections indicate a "positive response" to the programme.

Its actual target under the programme, the TASD tells the Financial Gleaner, is $20 billion.

"Many business persons have also contacted the tax department requesting statements of their accounts, as they prepare to pay their outstanding taxes in an effort to get relief from the interest and penalties," said the TASD in a statement Wednesday.

The amnesty covers general consumption tax, special consumption tax, education tax, property tax, stamp duty, transfer tax, assets tax, contractors levy, as well as PAYE, corporate and individual income tax.

Revenue collections last year was $219 billion. Shaw has set a target of $263 billion this year, a 20 per cent increase.

business@gleanerjm.com