Multi-Million Dollar Tax Fine for Unregistered Taxpayers

Tax Administration Jamaica (TAJ) recently secured the conviction and subsequent fines imposed on Q&S Enterprise (Jamaica) Limited and Palm Rose Commodity Limited for breaches of the tax law in the Sutton Street Revenue Court. The Authority’s Intelligence Investigation and Enforcement Unit (IIEU) and Legal Counsel led evidence resulting in $3.2M and $700,000 respectively being handed down by the Courts for breaches under the General Consumption Tax Act (GCTA) and Revenue Administration Act (RAA).

Q&S Enterprise (Jamaica) Limited was fined $3.2M for breaches under Section 56 (5) of the GCTA. The Tax Authority presented evidence in Court that the St. Andrew based business in 2020, through its Directors, Mr. Stanford Henry and Mrs. Dagmar Berry, on several occasions unlawfully collected GCT, though they were not registered with TAJ to do so.

The GCTA states that “A person, not being a registered taxpayer, who collects tax commits an offence and is liable on summary conviction in a Resident Magistrate’s Court to a fine not exceeding $5M or to imprisonment for a term not exceeding twelve months or to both such fine and imprisonment.”

Both Directors pleaded guilty to three (3) offences on July 4, 2022 and were fined accordingly. 

Additionally, Palm Rose Commodity Limited on July 4, 2022, was also fined $700,000.00 after its Director Rudolph May pleaded guilty for failure to produce books, records and documents requested by Tax Administration Jamaica, pursuant to Section 17 (I) (a) of the amended RAA. 

The fine is the result of investigated allegations by the IIEU and consequently, after several requests made by way of Notices served on Mr. May, the company had nonetheless failed to provide TAJ with the requested books, records and documents.

TAJ wishes to reiterate that any person, who while not being a registered taxpayer collects GCT, or any registered taxpayer who collects GCT and fails to remit same to the Tax Authority, or who fails to report their correct income, profits or gains as defined within the Income Tax Act (ITA), or who fails to comply with any Notice or request under any law the Authority administers, will result in enforcement actions. 

These convictions follow the recent success in the Mandeville and Sutton Street Courts, where the Directors of R & R Xpress Company Limited and Rogers Land Development Limited, were found guilty of making false declarations and subsequently fined $3M and $1.9M respectively. 

Tax Administration Jamaica takes this opportunity to thank all taxpayers who have contributed to nation building as we continue to strive towards realizing a tax compliant Jamaica. TAJ will continue to improve trust and fairness within the system and to this end we seek your support. 

Persons may obtain further information on the tax law and any other tax related matter by contacting the TAJ Customer Care Centre at 888-TAX-HELP (888-829-4357) or the nearest Tax Office.