In addition, the tax authorities have signalled that they will also be much less forgiving of employers and businesses that hold on to, or wrongly report, taxes 'collected in trust' on behalf of the Government, such as statutory deductions and GCT.

Both the Inland Revenue Department (IRD) and the Taxpayer Audit and Assessment Department (TAAD) will begin examining company records for either false reporting and or non-payment.

A breach once deducted will bring 'strong measures' down on the assessed party.

While, the TASD did not spell out what the punishment would be - it often tends to be case specific - case prosecuted in Savanna-la-Mar, Westmoreland, in early December, the managing director and accountant of Cabletron Network System were arraigned on 27 counts of false declarations on GCT returns, the fine paid amounted to $371,000.

Serious measures contemplated

TASD spokeswoman Meris Haughton also said Tuesday that the measures contemplated under the IRD/TAAD collaboration were "very serious" in a reminder that the breaches were criminal offences.

Still, while jail has not been ruled out, it is not the preferred option, she said.

The IRD is pressing ahead with prosecutions, but it is more likely that delinquents will be fined rather than confined.

The guilty are required not only to pay the court fine, but remain liable for the taxes, interest and penalties.

The current round of summonses that have been issued relate to more than 200 self employed persons and companies who, based on their returns, owe $553 million, but have not paid over the cash or made arrangements to pay.

They face the court in January.

The tax authorities have also reached for a tool used in previous years - levy warrants - that allows for the confiscation and auctioning of goods to cover the outstanding tax debt.

The warrants are wielded in the most extreme cases.

"We normally have some hard cases; that's from tradition," said Haughton TASD director of public relations.

"Some persons, no matter what, they just don't budge - and you have to protect the revenues."

No recourse to negotiate

The TASD warns that once the process has been set in motion and a collections specialist and bailiff have been hired, the delinquent party no longer has recourse to negotiate payment with the tax commissioner.

The intensified collection efforts are in sync with directives from Finance Minister Audley Shaw to bring the non-compliant into the tax net, but it is also dictated by fiscal need.

Taxes have not been performing to expectations, falling $6 billion below target, putting pressure on government to borrow more to cover its operational bills and debt repayments, but also forcing cuts in spending programmes in order to contain the deficit that reached $37.5 billion at the end of October.

Another $862 million of taxes have been given up voluntarily by the Treasury to fund a portion of the economic stimulus package unveiled Sunday by Prime Minister Bruce Golding.

Tax Administration said it would maintain the pressure on delinquents up to the end of the fiscal year.

lavern.clarke@gleanerjm.com

'Some persons, no matter what, they just don't budge - and you have to protect the revenues.'