CORRECTIONS AND CLARIFICATIONS: It was incorrectly reported in today's Gleaner that the National Housing Trust was owed $784.88 billion by more than 2,000 employers including the Ministry of Finance. The correct figure should be $784.88 million. The error is regretted. THE MINISTRY of Finance and Planning is one of the 2,000 delinquent employers that have failed to hand over contributions totalling $784.88 billion to the National Housing Trust (NHT).
The information made public by the NHT, comes one week after Prime Minister P.J. Patterson's announcement in Parliament
last Thursday, of a six-month amnesty beginning May 1, for employers in arrears on their
NHT contributions up to December 1, 2000. For those taking advantage of the amnesty, all penalties will be waived.
However, arrears on payments on employees contribution will still attract the applicable penalties and surcharges.
The NHT, in response to Gleaner questions disclosed that while Government companies and statutory bodies
were current with their payments of the employee's portion (2 per cent) of the contributions, the Ministry of Finance
which is responsible for the employers' portion (3 per cent) of the contributions was in arrears. It refused to divulge the
names of any other entity in arrears, stating that "it would not be appropriate for us to disclose this information at the
moment". But, it has warned that this would be done if companies refuse to settle the outstanding amounts before the
six-month period expires.
A breakdown of the amount owed shows $172.54 million in employee contributions, $145 million employee penalty and
surcharge, $255.71 million in employer contribution, and $211.55 million as employer penalty penalty and surcharge.
The amounts have accumulated over the past seven years despite the Trust's efforts at collecting.
All measures including hauling companies before the courts, increasing the penalty fee from 20 to 40 per cent, and a 10 per
cent surcharge added to companies in arrears for more than a year have failed. Even the refusal to grant Tax Compliance
Certificates has not impacted positively on the NHT's efforts at collecting the outstanding
sums.
Over the past two years the NHT has taken legal action against 1,503 companies, with 21 being brought before the
court.
Under the NHT Act, each employer is required to deduct 2 per cent of the gross wage of each employee and add 3 per
cent of the gross wage bill. This is to be submitted by the 14th day of the following month. Failure to meet the deadline results in a 40 per cent penalty and a 10 per cent surcharge for amounts outstanding for more than one year. The employer is also required to submit by March 31 each year, an annual return detailing the amount deducted from each employee's gross wage from the previous
calendar year.
Those taking advantage of the amnesty which ends October 31, will benefit from savings of up to 50 per cent on the out-
standing amount.
The Prime Minister warned, however, that failure to make good during the grace period "will result in the application of
the full measures under the law to recover both outstanding contributions and the applicable penalties".
