11 car dealers that falsely filed $0 income reported $4 billion after prosecution - TAJ

Eleven used-car dealer companies that previously declared no income later reported more than $4 billion in pre-tax earnings after pleading guilty to income tax offences, Tax Administration Jamaica (TAJ) says.

It names the companies as; 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.

TAJ says the companies were charged with filing false returns 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 prosecuted in parish courts across Kingston and St Andrew, Manchester, Clarendon, St Catherine and St Mary. I

TAJ said all 11 companies pleaded guilty and were fined a combined $12.25 million.

Following the court proceedings, TAJ said the companies submitted 32 amended income tax returns for the years 2020 to 2023, declaring gross income of just over $4 billion.

TAJ said this was a "significant increase from the nil ($0) income previously reported".

The investigations were conducted by TAJ’s Intelligence, Investigation and Enforcement Unit, with legal support from the Criminal Litigation Unit.

Charges were laid under Section 99 (1) of the Income Tax Act, which makes it an offence to knowingly make a false statement in an income tax return.

Under the law, a first offence carries a penalty of up to $2 million or, in default of payment, imprisonment for up to one year.

With the income tax filing deadline approaching, TAJ warned that “the deliberate failure to declare correct income, profits or gains with intent to defraud the revenue is a serious offence under the Income Tax Act”.

TAJ also encouraged taxpayers who may have made errors or omissions in previous filings to correct them promptly and seek assistance through its customer service channels to ensure compliance.

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