Digicel, TAJ to dialogue on tax impasse

(Jamaica Gleaner) Mobile service provider Digicel and Tax Administration Jamaica (TAJ) have agreed to cooperate in an effort to complete an audit of the telecom’s general consumption tax compliance.

Two weeks ago, TAJ agents, supported by the police, swooped down on Digicel’s offices in New Kingston to execute a search warrant.

The TAJ had said the operation was aimed at retrieving records and documents as part of an investigation to ascertain if the GCT paid by Digicel customers was being paid over in full to the tax authorities.

However, lawyers for the telecommunications company successfully applied for an injunction barring the raid.

Following a series of meetings last week with representatives of the Ministry of Finance and the Ministry of Science, Energy and Technology, the parties agreed to have more dialogue on the issue.

The Ministry of Finance has said it regrets any appearance of heavy handedness in the execution of the search warrant and added that the action was not meant to impute guilt on Digicel.