MAYE, HEW CHIN & CO. CHARTERED ACCOUNTANTS - EDUCATION, INFORMATION, SERVICE AND MORE...
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NEWSLETTER JULY 2021
MAYE, HEW CHIN & CO.
CHARTERED ACCOUNTANTS
AND MORE...
EDUCATION, INFORMATION,
SERVICE
WE CAN NOW BE REACHED AT OUR NUMBERS
979-0121 and 940-0999
www.mayehewchinco.com
IN THIS
TAX TREATMENT ON CAPITAL GAINS
IN JAMAICA & TAX LAWS
THE IMPORTANCE OF REGISTER-
ING BUSINESS NAMES
JULY 2021 COVID UPDATES
COMPANY INFORMATION
IS YOUR BUSINESS NAME REGISTERED?
ACT QUICKLY! IT MAY COST YOU
We know it is easy to pro-
crastinate assuming the
business name you use is
safe. But is it registered.
Not because you have been
using a business name for
many years means you own
it. Not because everyone
knows it means you cannot
lose it.
This is a warning to all our clients and for everyone you know.
GET YOUR BUSINESS NAME REGISTERED!
We had at least two clients who have been in business for over 30 years
each with very popular business name whom we were tasked to formalize
in the past 2 to 12 months.
Although the company was registered, the business name they operated
under was not registered. They are registered now but are you?
The Companies Office of Jamaica, informed us of the urgency of having
business names registered. Registration can never be too soon.
We were informed that there are unscrupulous individuals going around
looking for businesses with popular names that have been in business for
some time but that are not registered. They then register these businesses
and hold the company at ransom.
Your business name is your identity! Your business name is your goodwill!
In your business name is packaged all your customer relations, promo-
tions and advertising. Do not take it lightly; get registered.
The company’s office has no power to refuse a name if it is not registered.
Where assistance is needed, our office is more than happy to assist with
the registration process.
THE IMPORTANCE OF REGISTERING
BUSINESS NAMES
Your business name
is the most crucial
component that your
customers use to
identify you. Every-
thing related to your
business such as his-
tory, services, brand
equity, and reputa-
tion is tied to it. Your
business name is
what your customers
use to differentiate you from similar traders. Your business name
should be cared for as much as your assets, and you should pro-
tect is as part of your intellectual property.
THE RISKS OF NOT REGISTERING YOUR BUSINESS
NAME
Some risks taken when a business
name is not registered include:
You won’t be identified as a
unique trader under your
ownership.
You avoid accidentally using
the same name as other busi-
nesses.
You won’t be able to open a
bank account or apply for loans using the unregistered name.
You run the risks of others using the business name to their
advantage.
TAX AUDIT MATTERS
TAX TREATMENT AND INTERPRETATION
As we mentioned in our last Newslet-
ter, there is an uptick in tax audits
during this period driven by infor-
mation readily available to the tax au-
ditors and information they gather in
various ways.
We have had tax audits that were re-
ferred to us from non-clients and cli-
ents for advise and abjections.
Today we begin this series to address
some tax treatments you may not be
aware of.
DID YOU KNOW THAT GCT
ON MAINTENANCE IS NOT
ALLOWED?
One of the common tax adjustment
during an audit is the GCT on mainte-
nance of building. They argue that this
is not incurred wholly and exclusively
in earning the income consistent with
the requirement on the income tax ac.
This however should not apply to businesses that are of a renal nature or hotel in our
opinion since the maintenance would relate to the income earning activity.
LOSS OF MONEY BY THEFT OR ROBBERY
We had an instance of robbery where a company driver was held up on his way to make
the deposit and murdered. The matter was reported to the police.
The tax audit disallowed this on the basis that taking monies for deposit is not an activity
that fits the profile of wholly and exclusively incurred in earning the income.
The objection was made using an excerpt from the IRS TAX LAWS and precedents. THE
IRS RULE IS AS FOLLOWS
If you suffer a theft in the course of your business or trade, you may be enti-
tled to a tax deduction equal to your loss. The theft can be anything from
embezzlement to robbery, as long the action is illegal and you report it as a
crime. The lost property can be money, equipment, supplies or even items
owned by an employee for use on the job.
TAX AUDIT MATTERS
TAX TREATMENT AND INTERPRETATION
STAFF MEALS
The principle of staff
meals is that it must be
generally available to
all staff. If meals are
purchased for some
staff and not available
to others it will be in-
terpreted as staff bene-
fits.
This has cause a signifi-
cant tax adjustment for
a major company that
was referred to us.
TRANSPORTATION & MILEAGE
Travelling allowance is not allowed. However, claims for travel is allowable if in-
voices presented for fuel, taxi or otherwise is provided.
Where a private vehicle is used the time used for private purposes will be consid-
ered or estimated. If the vehicle is parked on the company’s property and not driv-
en home they will be deemed to be fully company’s and the expense treated accord-
ingly.
Where travel allowance is desired for employees, the taxpayer must write to the tax
authority seeking approval based on position of travelling officer and justification
of travel. The approved amounts may
then be used for the position continu-
ally.
Where mileage is used, the company
must write to the tax authority seeking
approval for the mileage rate desired.
MORE ON TAXES IN OUR NEXT NEWSLETTER
TAX TREATMENT ON CAPITAL GAINS
IN JAMAICA
THERE IS NO TAX ON CAPI-
TAL GAINS IN JAMAICA !!!
WHAT ARE CAPITAL GAINS?
Capital gain refers to an increase in a capital asset's val-
ue and is considered to be realized when the asset is sold.
A capital gain may be short-term (one year or less) or long-term
(more than one year) and must be claimed on income taxes.
While capital gains are generally associated with stocks
and funds due to their inherent price volatility, they can also be
realized on any security that is sold for a price higher than
the purchase price that was paid for it.
However, there is a transfer tax on the market value of certain
assets transferred, and stamp duty payable on the transfer/
disposal of shares or real property.
A transfer tax of 2% is applicable on the consideration payable
on the transfer of assets such as, land building, securities and
shares.
NCB MANAGERS PAID OUR OFFICE
A CORTESY VISIT
Earlier this month, partner, Mil-
ton Maye FCA was graced with a
courtesy visit at our Fairview of-
fice by two NCB stalwarts, Mr.
Stuart Barnes, NCB Fairview
branch manager and Mr. Kanai
Skeene, responsible for large cor-
porate loans, with whom we have
had longstanding relations con-
cerning various clients.
STUART BARNES
FINANCING OPPORTUNITIES
If you or anyone you know have a major project in need of
significant financing and are able to meet the loan require-
ments and substantiation of project , to include:
Profitability,
Projections and cash flow
Capital requirement
Performance of existing operations
Capital injection
Existing contracts or interest to sub-
stantiate income projected;
Call us and we may help you with direct
reference
We may help also to put your project to-
gether so you may qualify for an NCB
loan to get you going.
KANAI SKEENE
COVID MEASURES cont’d
COVID TESTS, VACCINATIONS & QUARANTINE
Regarding the controlled entry pro-
tocols, the requirement for all travel-
ers to present a negative COVID-19
test conducted within three days of
travel remains in place, as does the
requirement to self-quarantine for
14 days after arrival for persons who
are not fully vaccinated.
For fully vaccinated persons (which means the person has received both doses of a
two-dose vaccine or the single dose of a one-dose vaccine and at least two weeks
have elapsed since receiving the last dose), the quarantine period will remain at
eight days.
However, fully vaccinated persons now have the option, as of July 1, of taking an
approved PCR test and upon presentation of negative results they can be released
from the Quarantine Order.
TRAVEL BANS
The travel ban for South American countries (Brazil, Chile, Peru, Colombia, Argen-
tina and Paraguay), as well as for Trinidad & Tobago and India, is being extended
until August 10, 2021.
For the stay-at-home order, Mr. Holness said the age limit for the stay-at-home
measure remains at 60 until August 10, 2021. However, persons who are fully vac-
cinated have been exempted from this.
Meanwhile, for markets and vending in public arcades and public transportation
centres, operating hours will continue to be from 6 a.m. to 7 p.m. on Mondays
through Saturdays.
Beaches, rivers, zoos, water parks and attractions will open from 6 a.m. to 6 p.m. on
Monday to Saturday and from 6 a.m. to 5 p.m. on Sunday, given the change in cur-
few hours.
Parks, gyms and bars are subject to the existing restrictions and protocols and must
close at least one hour before the start of curfew.
COVID MEASURES LOOSEN
Prime Minister, the Most Hon. An-
drew Holness, on Tuesday (June
22), announced adjustments to the
measures aimed at containing the
spread of the coronavirus (COVID-
19).
Effective Thursday, June 24, the Or-
der will be modified to phase in new
measures for places of worship and
cinemas.
WORSHIP
“We will modify the restriction on the maximum number of persons allowed to be
physically present for worship services from the current limit of 50 persons to a ca-
pacity-based limit, depending on the size of the designated area for worship,” Mr.
Holness said, during the sitting of the House of Representatives.
“The maximum number of persons physically present will be determined as 70 per
cent of the capacity, which is calculated based on one person for every 40 square
feet of the designated worship area,” he pointed out.
All the existing protocols, for example, temperature checks, sanitisation, and mask
wearing must continue to be observed.
THEATRES, CINEMAS & PPV DRIVERS
Indoor theatres and cinemas will be allowed to open with the same size-based ca-
pacity limitation – one person for every 40 square feet or 70 per cent of seating ca-
pacity, whichever is lower.
“For Drive-in cinemas, we will remove the existing capacity limitation on the num-
ber of vehicles, but instead require that the maximum number of persons in any ve-
hicle should not exceed the number permitted to be in the vehicle under the regis-
tration,” Mr. Holness said.
“For vehicles that are registered to carry more than seven persons, the maximum
allowed will be eight persons. A vehicle designed to accommodate no more than 15
persons shall be the largest permitted,” he added.
CURFEW HOURS
For curfew hours, effective July 1, 2021, the curfew will begin at 11 p.m. on Monday
to Saturday and at 6 p.m. on Sunday, and end at 5 a.m. the next morning until Au-TOURISM BOUNCING BACK
BARTLETT ESTIMATES TOURISM EARNINGS TO
REACH US$ 1.5 BILLION, 1 MILLION VISITORS BY AU-
GUST 31
Tourism Minister, Hon. Edmund Bartlett, says Jamaica is poised to generate ap-
proximately US$1.5 billion in earnings from some one million visitor arrivals by
the end of August as the sector rebounds from the ravages of the coronavirus
(COVID-19) pandemi He said the projections are based on out-turns over the last
seven months during which nearly 700,000 tourists visited the island’s shores.
Mr. Bartlett pointed out that the overall figure for the period exceeds 800,000
when coupled with general passenger arrivals and is set to reach the one million
mark over the next several weeks.
The Minister maintained that the current and projected out-turns are testament
to sector’s resilience to the COVID-19 pandemic, adding that “no other industry
could do that in seven months… [but] the tourism industry has”.
He was speaking during the digital opening ceremony for the seventh staging of
the ‘Christmas in July’ tradeshow at The Jamaica Pegasus hotel in New King-
ston, on Thursday (July 22)
Mr. Bartlett further highlighted that more than 50,000 tourism industry workers
have been reinstated in jobs over the last six months, noting that the sector has,
in many ways, bounced back and grown faster than several other areas of Ja-
maica’s economy.
The Tourism Minister pointed out that the focus on recovery is being done even
as the country continues to deal with the “awesome” challenge of managing the
COVID-19 pandemic, which, he said, is characterized by uncertainty.TOURISM cont’d… CRUISE LINES
Cruise Lines Back in
Service: July 2021
With the U.S. restart pushing the
numbers up, the global cruise in-
dustry is quickly bouncing back.
While 141 cruise ships will be in
service before the end of July, over
40 operators have already re-
sumed operations around the
world. According to the July 2021
edition of the Cruise Ships in Service Report by Cruise Industry News, these are
the cruise lines currently in action:
Royal Caribbean International: Royal Caribbean was one of the first major
cruise lines to resume service, with sailings from Singapore resuming in Decem-
ber 2020. By July 31, six additional vessels are set to welcome guests back, with
itineraries in Europe, Alaska and the Caribbean.
The main highlight is the new Odyssey of the Seas, which is slated to sail on its
maiden voyage on July 31 from Fort Lauderdale. Region: Singapore, Bahamas,
Europe, Alaska and Caribbean
Carnival Cruise Line: Carnival Cruise Line recently kicked off its first cruise in
almost 16 months, as the Carnival Vista sailed from Galveston withs passengers on
July 3, 2021. A second vessel, the Carnival Horizon, also resumed service from Port
Miami, on July 4.
Carnival plans to reactivate three more vessels before the end of July, including the
new LNG-powered Mardi Gras. Region: North America – Bahamas and Caribbean
MSC Cruises
After pioneering the European restart in August 2020, MSC Cruises currently has
seven active vessels. The most recent addition to the lineup was the MSC
Seaview, which resumed service in Northern Europe on July 3.
Region: Europe – Western Mediterranean, Eastern Mediterranean, United King-
dom and Northern EuropeNEW STAFF
It is with great pleasure that we
welcome Ms. Ashleigh Drum-
mond to our team at Maye, Hew
Chin & Co.
Ms. Drummond joins us as our
Administrative Assistant and is
a pleasant personality who will
add warmth and efficiency to
our organization and customer
communication.
MS. Drummond will make her-
self conversant in all areas of
the tax laws and relations with
our tax contacts and will be our tax specialist.
Ms. Drummonds also is our client relations officer and you
will each relate with her as you relate to our office. Ms.
Drummond is also our newsletter and website editor.
Ms. Drummond is a past Student of Montego Bay High
School where she earned 9 CXC’s with 8 distinctions.
She also attended the Montego Bay Community College
where she achieved her Associates Degree in Business and
General studies.
She is currently pursuing higher education, and is a past
employee of the Dept. of Friendly Societies and Caribbean
Cruise Shipping and Tours Limited.
We welcome Ashleigh, an important member of our team, as
we strategize for greater efficiency and growth.STAFF VIBES
Ms. Ashleigh Drummond (left), Mr. Victor Maye
NAME THE STAFF
(center) AND
and TELL
Mr. Alex WHO(right)
Arnold IS MISSING
YOU ARE CORRECT IF YOU HAD:
IN PICTURE
ASHLEIGH DRUMMONDS
VICTOR MAYE
ALEX ARNOLD
MISSING FROM PICTURE
Dawn Dyer (Operates from the Union Street Office)
Silbert Martin Currently works from home
Brittni-Ann Brown: in picture below
Milton Maye: captured below
STAFF DEPARTURE
It is with regrets that we announce the departure
of Ms. Brittni-Ann Brown who has left for over-
seas to pursue a temporary opportunity. She will
be greatly missed.STAFF VIBES
A PARTIAL GLIMPSE OF OUR FAIRVIEW OFFICE;
VISIT US SOON
MR. MILTON MAYE, FCAOUR OFFICE WE ANTICIPATE YOUR VISIT
OUR LOCATIONS
WE HAVE ONE MAIN OFFICE WHICH
SERVES AS OUR ONLY BUSINESS CENTER
AND ADMINISTRATIVE OFFICES
ALL BUSINESS ACTIVITIES, FILES TO BE DE-
LIVERED, PAYMENTS, MEETINGS TAKE
PLACE AT OUR FAIRVIEW OFFICE
WE ALSO HAVE A
UNION STREET OUTLET
THIS IS A PRIVATE OFFICE FOR
SPECIAL PROJECTS
WORKCENTER
INITIAL RECEPTION OF NEW BUSI-
NESS/ WALK IN CUSTOMERS:
COMMITTED TO SERVING YOU AND
YOUR GENERATIONS
Maye, Hew Chin & Co. wishes to remind you in this season that we are
not accountants who only add up the figures, we guide you to make the
figures add up. We not only count your money; we count you. You are
very important to us!
We are committed to standing with you in this crisis, to guiding you
through it, giving you important information and advice to help you
survive and maximize this crisis and to stand with you, do your finan-
cial statements and celebrate with you beyond.
WE HAVE COMPETENT STAFF AND PARTNERS PREPARED TO
SERVE WITH KNOWLEDGE AND EXPERIENCE:
WE SERVE WITH A COMPETENT
STAFF: DEPENDABLE, EXPERI-
ENCED AND QUALIFIED (ACCA
SUCCESSES)You can also read
