1.6 Strengthening Tax Compliance and Administration

As part of the effort to improve Jamaica’s Doing Business ranking under this indicator, the Government of Jamaica will be streamlining the entire procedure for the collection of taxes. Much work will have to be undertaken in this area, as the country has only been able to move a few spaces in this area, from 170/178 in 2008 to 168/189 in 2014.

 

Jamaica

Global Benchmark[1]

Regional Benchmark[2]

2008

2014

2008

2014

2008

2014

Payments (# per year)

72

36

2

3

30

16

Time (hours per year)

414

368

12

12

114

140

 

As indicated by the above table, over the years the country has reduced the number of required tax payments per year from 72 to 36 as well as the time to pay taxes from 414 hours per year to 368 per year. However this progress has been insufficient to reflect a significant change in our rankings when compared to the international benchmark of 3 payments and 12 hours per year.

To reduce the burden of time on citizens and businesses to file taxes, the country is implementing a number of measures which include the introduction of new integrated forms, mandatory e-filing for certain categories of tax for large taxpayers and establishment of filing centres in Constant Spring and Montego Bay where Internet kiosks are provided to users for the purpose of filing taxes. Additionally, the Government will be improving the systems that support the collection of Property taxes, by simplifying tax payment procedures and expanding payment channels to reduce compliance costs to citizens and businesses, particularly those in rural areas.

Work will also be undertaken to improve the process for acquiring a Tax Compliance Certificate (TCC) working with the various entities responsible for providing information for the issuance of the certificate to better allow the Tax Administration of Jamaica to fulfil the established service standard of responding to applicants within 24 hours.



[1] The global benchmark is provided by the best performers globally for that indicator: 2008 - Sweden ( payments per year); U.A.E. (hours per year)| 2014 -  Hong Kong ( payments per year),

 

[2] the regional benchmark is based on the best performer among the comparator economies (as identified by the World Bank) in the region for that indicator for that year: 2008 – Grenada ( payments per year),  Trinidad and Tobago ( hours per year)| 2014 – Puerto Rico ( payments per year), Grenada (hours per year)