EFFECTIVE JULY 31,
the Taxpayer Audit & Assessment Department (TAAD) will make changes to the registration status of tax-
payers who now fall below the General Consumption Tax (GCT) threshold of $1,000,000, which was increased on May 1 of this year. At this time a registered taxpayers with annualised gross sales of less than $500,000 will be automatically changed to a 'registered person'. Businesses with gross annualised sales above $500,000, but less than $1,000,000; must indicate in writing by July 31, if they wish to remain as registered taxpayers.
Further, businesses exclusively involved in activities that are exempt from GCT (e.g. compu-ter sales) must write to have their GCT registration closed. Letters must be addressed to: The Commissioner, Taxpayer Audit and Assessment Department, NCB Towers (11th Floor South Tower) 2 Oxford Road, Kingston 5.
A business which has its registration status changed from a registered taxpayer to a 'registered person' should no longer issue tax invoices, charge or collect GCT, file GCT returns or display a GCT certificate of registration in its establishment. Consumers should, therefore, ensure that GCT is only paid to a legitimate registered taxpayer with a valid GCT registration certificate displayed.
GCT RETURN
As a part of the 'cancellation of registration' process, businesses are required to submit a GCT return for the last taxable period with the word FINAL clearly written on the return. They are also required to assess GCT on the cost of any taxable assets that is on hand immediately before cancellation of registration, and account for the value of those goods on the final return.
Additionally, the GCT certifi-cate must be returned, as failure to do so will result in a penalty of $5,000 being charged.
Businesses are reminded that records must be kept for six years for the period during which they operated as registered taxpayers, as a tax audit may still be done on the business. Any legitimate charges (tax, penalty, interest or surcharge) outstanding prior to or determined subsequent to the cancellation of registration MUST be paid.
For further information, contact the toll-free service 1-888-TaxHelp (1-888-829-4357) or the Technical Unit of TAAD at 920-2310 or 920-2906.
