By Neto Baptiste
Officials from the Inland Revenue Department (IRD) are dispelling reports that the process involved when claiming returns on funds they would have invested into sporting organisations is a cumbersome one.
Jermaine Jarvis and Patrick Dore Jr, both Deputy Commissioners within the Inland Revenue Department, agreed during an appearance on the Good Morning Jojo Sports Show on Tuesday, that the process is no more difficult than filing your annual tax report.
Dore Jr, a softball cricketer, outlined the main requirements when filing for a return.
“The first one, it has to be over $10,000 in one year. Second, it has to be to sports, education or culture, and the permanent secretary in the ministry for sports, education and culture has to approve that the contribution satisfies the criteria as in benefiting that ministry. And the final one, you have to be up to date with all taxes, including statutory deductions,” he said.
Expounding on what his colleague said, Jarvis, who is a former national footballer, sought to simplify the process.
“Let’s say you sponsored Bullets FC. That amount of money that you sponsored Bullets, and it’s subject to some criteria, so long as you meet the criteria then the amount that is deductible you can subtract it from your net income and then your tax will then apply to the balance after you make that deduction. At the end of it, it would be whatever the tax rate is and you would be saving that percentage on the amount of money you actually deducted from your net income,” he said.
Reports have suggested that businesses often ignored the process, labelling it cumbersome and time consuming.
Jarvis believes that amendments to the law dating back to 2008 made the process a friendlier one.
“There were two other amendments made. One was made in 2006 specifically in reference to sports where you could have gotten a tax credit and that would mean a direct write-off of the tax you have to pay. But that was to be done by regulations made by the Minister of Finance and the regulations must have been passed by the Parliament in an affirmative resolution and that amendment was done in 2006,” he said.
“However, that amendment was actually repealed in 2008 and the new amendment that was made in 2008 is the current thing that administers the contributions to sports and in that regard, it’s a deduction,” he added. The IRD, Jarvis added, is available and willing to guide individuals desirous of filing for returns in this and other areas.