TAJ Warns Against False Income Tax Filings Following $4B Disclosure After Court Action

Tax Administration Jamaica (TAJ) is reinforcing the importance of honest andaccurate income tax reporting, following the successful prosecution of eleven (11) used car dealer companies that falsely filed nil ($0) income tax returns over multiple years while actively conducting business.

The companies were charged after investigations revealed that, despite importing and selling hundreds of motor vehicles between 2020 and 2023, they reported no income in their company income tax returns. The matters were heard in parish courts across Kingston and St. Andrew, Manchester, Clarendon, St. Catherine, and St. Mary. All companies pleaded guilty, resulting in fines totalling twelve million, two hundred and fifty thousand dollars ($12,250,000.00).

Following the court proceedings, the companies filed thirty-two (32) amended income tax returns for the years 2020 to 2023, declaring gross income of just over four billion dollars ($4 billion), a significant increase from the nil ($0) income previously reported.

The prosecutions stemmed from investigations conducted by TAJ’s Intelligence, Investigation and Enforcement Unit (IIEU), with legal guidancefrom TAJ’s Criminal Litigation Unit. Charges were laid pursuant to Section 99 (1) of the Income Tax Act (ITA), which makes it an offence for any person who, for the purpose of obtaining any allowance, reduction, rebate, or repaymentof Income Tax, knowingly makes a false statement or representation in any return, declaration, or document delivered under the Act. A first offence carries a penalty of a fine of up to two million dollars ($2,000,000.00) and, indefault of payment, imprisonment for a term not exceeding one year.

The companies brought before the courts were Nostaw Limited, Karstarz Ballards International Ltd, Ballards International Ltd Automotive Limited, Auto Occasions Limited, Amalya Auto Ltd, Phillip Rankine Auto Links, Kiffin Auto Sales Company Limited, Walk In Drive Out, Videle Imports Limited, B & M Essential Limited, and Chosen Motors Works Limited. 

With the Income Tax filing deadline approaching, TAJ is remindingall taxpayers, particularly businesses, that the deliberate failure to declare correct income, profits, or gains with intent to defraud the revenueis a serious offence under the Income Tax Act. Filing accurate returns not only supports national development but also helps taxpayers avoid penalties, fines, and legal action.

TAJ encourages taxpayers who may have made errors or omissions inprevious filings to take immediate steps to correct the mand to seek guidance through TAJ’s customer service channels to ensure full compliance with the law.

Individuals who need assistance may contact TAJ’s Customer Care Centre at 888-TAX-HELP (888-829-4357) or email taxhelp@taj.gov.jm. Additional information is available at www.jamaicatax.gov.jm.