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Senate Approves GCT Regulations

Senate Approves GCT Regulations
Minister of Education, Youth and Information, Senator the Hon. Ruel Reid (left), is in discussion with Leader of Government Business in the Senate and Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, prior to the start of the sitting of Upper House on Friday (January 20).
(Media Credit: Mark Bell)

KINGSTON (JIS) -- The General Consumption Tax (GCT) Regulations, enabling several entities to file a single tax return, were approved by the Senate on Friday (January 20). This followed endorsement of the Regulations Committee’s report regarding the GCT (Amendment) (No. 2) Regulations 2015, under the GCT Act. Minister of  Education, Youth and Information, Senator the Hon. Ruel Reid, in presenting the report to the Senate, noted that the Regulations cement changes made to the GCT Act in 2014 to introduce the concept of GCT groups. He explained that the amendments “created a system to allow a GCT group of two or more affiliated entities, that is, companies and body corporates including those registered under the Banking Services Act and Securities Act, to delegate a representative entity within the group to file a single taxpayer return.”

This adjustment, he noted, would serve to reduce costs to the entities and allow for a more streamlined system of filing returns without reducing revenue to the Government.

Senator Reid said the Regulations will facilitate implementation of this legislative change by setting out the procedures and forms needed for GCT groups to file a single tax return via its representative entity.

“The Principal Act requires such changes to the Regulations to be made subject to negative resolution. Accordingly, the Regulations were laid before the Senate and referred to the Regulations Committee of the Senate,” he informed.

He noted that the committee, which heard from representatives of the Ministry of Finance and the Public Service and Tax Administration Jamaica “had no objections to the Regulations.”

Opposition Senator, Mark Golding, voiced his support for the Regulations.