The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Department of Inland Revenue yesterday said it has received 45 applications to-date for the government’s $60m tax credit and deferral initiative designed to provide payroll support.

Gaynell Rolle, the department’s acting controller, said: “We are still in the process of evaluating those applications, so at this time I won’t be able to give you a figure of what was the non-executive payroll of each of those companies.

“The government has made provision for a tax credit and a tax deferral scheme that will assist employers with a turnover in excess of $3m annually, and a staff complement of 25 persons or more, to relieve some of the burden of payroll cost.

“Each approved business has a monthly allocation of up to $200,000 for a period of three months - April, May and June - giving a cumulative total of some $600,000 in total.”

Ms Rolle added: “The approved tax relief is to make available to businesses on a monthly basis a 50 percent non-reimbursable write-off qualifying payroll expense the employer would have for that month. Secondly, to treat the remaining 50 percent as a deferred finance-free payment plan for payments that will not begin until January 2021.

“In facilitating the process, businesses will be allowed to withhold any business license fees and, thereafter, any value added tax (VAT) that might be owing to the government in the amount of the monthly approved tax relief that we commonly called the ATR.

“If the ATR is in excess of the current holdings, it can be applied at any future time. It is important to note, however, the ATR is calculated monthly based on the non-executive payroll. It is a 50-50 plan and not an object of either or a tax credit or tax deferral. The approved tax relief dos not have an expiry date for use by the business,” she said.

“We consider businesses to be an ongoing concern, and we are optimistic about the rebound of the economy. We are in the process of evaluating in excess of 45 applications to-date, and project a turnaround of those applications within a five-day work period.”