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IRD officials explain tax return process for sports sponsors

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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.

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“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“However, that amendment was actually repealed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.

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