IC yet to hear from TAJ on request for further review of probe into PM’s financials
Published:Wednesday | October 2, 2024 | 12:10 AMKimone Francis/Senior Staff Reporter
Tax Administration Jamaica (TAJ) has not acknowledged or responded to the Integrity Commission (IC), two weeks after the anti-corruption body referred an investigative report into the assets and financials of Prime Minister Andrew Holness for probe.
In an emailed response to The Gleaner on Tuesday, the commission confirmed that the report was officially referred to TAJ on September 18 following the recommendation of its director of investigation, Kevon Stephenson.
Further, the IC said it has received no confirmation or acknowledgement from TAJ on the matter.
When contacted by The Gleaner, TAJ Commissioner General Ainsley Powell said the entity would not confirm whether it received an official communiqué from the IC and if it had responded.
Powell argued that the referral “is for someone specific” and is directly for a taxpayer.
“So, we’re not going to discuss a person’s tax matter. I’m not going to comment on it because then I will be discussing the prime minister,” said Powell on Tuesday, insisting that confirmation of the referral would breach legislation that governs TAJ.
In its annual report for financial year 2023-24, the commission said that, since May 2022, it has been in communication with TAJ with a view to having a memorandum of understanding (MOU) executed by both parties.
The commission said TAJ advised on December 12, 2023, that it was still considering the use of the MOU as a vehicle to share information with the IC. The commission said it was awaiting an update from TAJ.
Two weeks ago, Stephenson, in the 171-page report on the prime minister’s assets and financials, raised tax compliance concerns about three companies – Imperium, Positive Media and Estatebridge – which Holness is connected with or had financial interests in.
Nil tax returns for the companies were filed for 2021 and 2022.
A nil income tax return indicates that a company falls below the taxable income and therefore did not pay taxes during the year.
IN COMPLIANCE
Holness told Parliament that the company with which he is “directly associated is compliant and up to date with its tax filings”.
On Monday, Holness applied to the Supreme Court to have the report into his financial affairs rejected as “unlawful”, “unfair” and premised on an “unconstitutional” law.
He is seeking 21 orders or declarations on 69 grounds.
Among them, Holness is urging the court to declare that referral of the report and findings to TAJ and the Financial Investigations Division “represents an unlawful delegation and/or abdication of the 2nd and 3rd Respondents’ and/or the Director of Corruption Prosecution’s statutory responsibility”.
The report into his statutory declaration, tabled in the House of Representatives on September 17, stated that a forensic examination of bank accounts attributable to Holness and the referenced companies for the period January 1, 2020, to June 13, 2023, revealed intercompany deposits and withdrawals of $473,161,545.37 and $427,174,913.86, respectively.
The report stated that the financial statements provided by Holness indicate that, in 2021, Imperium earned at least $5,121,105 in dividends, exchange gains and interest, but filed a nil tax return for 2021 and 2022.
Positive Media’s management accounts and statement of comprehensive income for 2021, submitted by Holness, indicate a total income of $20,069,697, the report stated, but the company filed a nil tax return for 2021 and 2022, indicating that the business had not engaged in any revenue-generating activity over the two years of its existence.
For Estatebridge’s management accounts, the report indicated that the statement of profit and loss account, the year ended December 31, 2021, shows an ‘interest income’ of $1,040,625.
However, Estatebridge filed a nil tax return for 2021, which means that the business had not engaged in any revenue-generating activity in that year.