Adapted from the original article at http://www.jamaicaobserver.com/business/Talking-Tax-6
The March 15 Income Tax filing deadline is fast approaching and businesses should be finalising arrangements to submit their final income tax return for 2009 and estimated return for 2010.
While filing returns are important, businesses must keep records of their business activities, such as:
- sales receipts
- purchases invoices
- payroll records
- utility bills
- transportation expenses
- rent receipts
- bank statements
- all other business and administrative expenses.
Whether you operate the business as a company, self-employed person, partnership or any other type of organisation, you should adopt good record-keeping practices for five main reasons:
Reason #1
Well-kept records may shorten the length of time that an audit takes to be completed.
Reason #2
Well-kept records can mean tax savings for you.
Reason #3
Good records can help verify all income and business expenses for tax audit purposes.
Reason #4
Proper books and records provide an accurate picture of your business operations.
Reason #5
Records will keep you better informed about the financial position of your business.
In filing income tax returns, you do not have to submit your records. However, please note that, under the Income Tax Act, you must maintain proper records, in English, for a minimum of six (6) years. You should then make the records available to the tax authority, if your income tax return is selected for an audit.
You can get more information on record keeping and other tax issues by calling the Tax Administration Customer Care Centre at 1-888-TAX-HELP (1-888-829-4357) or visiting the website www.jamaicatax.gov.jm
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