TAJ can audit returns for up to six years. Many Jamaican businesses don't know this — and dispose of records well before the statutory period ends.
Record retention is one of those compliance areas that seems unimportant until it isn't. A TAJ audit notice for a prior period, a contract dispute, or a court order requiring financial disclosure can all surface a need for records that no longer exist.
The Statutory Period
Under the Revenue Administration Act, TAJ can assess additional tax for up to six years from the end of the tax year in question. For fraudulent or negligent returns, there is no time limit on assessment. This means you should retain records for a minimum of seven years — six full assessment years plus the current year.
What Must Be Retained
For GCT purposes:
- Tax invoices issued and received
- Import documentation
- Credit and debit notes
- Records of adjustments
For income tax:
- Source documents for all income (bank statements, contracts, invoices)
- Records of all deductible expenses (receipts, invoices, payroll records)
- Fixed asset register and depreciation schedules
- Loan agreements and interest records
For payroll:
- Employee contracts and declarations
- Monthly payroll calculation sheets
- NIS, NHT, Education Tax, and PAYE computation records
- Remittance receipts from each authority
Format
Records may be kept in electronic form, provided the system produces a true and accurate reproduction of the original. Scanned invoices are acceptable. Pure spreadsheet records without supporting documentation are generally not sufficient on their own.
Our Recommendation
We advise all clients to maintain a 7-year rolling archive with the following structure:
- Year-end accounts and working papers
- Monthly bank statements and reconciliations
- All supplier invoices above JMD 10,000
- All payroll records
If you're inheriting a business or taking on an existing client file, a records audit in the first 90 days saves significant effort later.