By Petulia Clarke, Staff ReporterCLIVE NICHOLAS, director-general of tax administration, is to meet players in the local gaming sector today to iron out concerns about the implementation of the new tax system for the industry.
The two major lottery companies Supreme Ventures Ltd. and Jamaica Lottery Company (JLC) maintain that they are unable to make the requisite changes to their computer systems for weeks yet, although the Government wants to introduce the new tax by Monday.
A Caribbean Media Corporation (CMC) report on Wednesday said that the Tax Administration Department (TAD) would not grant further extensions for the companies to make preparations and that Mr. Nicholas would be doing checks with lottery companies to determine if they have made the changes.
MONDAY OUT OF THE QUESTION
However, the tax czar told The Gleaner yesterday that while the TAD wants the companies to be ready as soon as possible, he didn't think that they would be ready by Monday.
"I understand their problem; we'll meet tomorrow (today) as from all indications they will not be ready," he said.
In fact, Suzette Smellie-Tomlinson, Supreme Venture's marketing manager, said the conversion could take four to five weeks and software personnel were currently working to modify the technology. Supreme Ventures sells Cash Pot, Lucky 5 and Dollaz games.
"Our service provider would need to do the necessary software modification. The software has to be redesigned in the process; there is no way we can meet a deadline on Monday," she said.
OPEN FOR FRAUD
For its part, the Jamaica Lottery Company (JLC) which sells Lotto, Pick3 and Three Way Drop Pan is also unable to meet the deadline.
"We're aiming to be ready and to have the application tested for September 1," Howard Mitchell, JLC chairman, said. "We can't do it before that, and if it is not properly done it creates the possibility for fraud."
The Government had initially suggested a 25 per cent tax on all lottery sales to help fill a Budget financing gap. Following outcries from the sector, however, this was then adjusted downward and Dr. Omar Davies on July 7 signed a provisional tax order for the imposition of the 15 per cent tax on lottery winnings.
