AMENDMENTS TO the Reve-nue Administration Act 2013 haspaved the way for the tax authori-ties to request third-party informa-tion from companies and otherbusinesses, as well as from gov-ernment ministries, departmentsand agencies.

On Friday, the Tax Administra-tion Jamaica (TAJ) said it wouldimplement the policy in phasesstarting next fiscal year.

Businesses in selected sec-tors will be required as of April2014 to submit informationdetails relating to their deposi-tors, independent contractors,

suppliers and business cus-tomers, the agency said in arelease.

TAJ hopes the informationwill assist in widening the taxnet and to identify entities thatunder-report their taxes.

“The information gathered willbe used to validate returns filed bybusiness taxpayers. Companies,self-employed individuals andpartnerships are therefore cau-tioned to file a true assessment oftheir business activities for GCT,payroll and income tax purposes,”said the release.

The Revenue Administration

Act was amended in June 2013,with new powers granted to thecommissioner general of TaxAdministration Jamaica torequest information deemeduseful for tax purposes.

The provision is also meant toaid the tax authorities withinvestigation, audit, assessmentcollection, and enforcement.

TAJ said that before finalisingthe strategy for third-party dis-closure, affected groups and tax-payers will be advised of thenew requirements.

“Subsequent to the discussionwith stakeholders, formal

requests for the data will besent,” the tax agency said.

business@gleanerjm.com

THE SUNDAY GLEANER, JANUARY 12, 2014 C3| BUSINESS

sources were quite as forth-coming as Seiveright.

An official connected tothe Ministry of Agriculture’scommodity boards said hehad “no interest” in consid-ering any aspect of the mari-juana trade in Jamaica, norhow the development inColorado could affect theindustry here.

The commodity boardsare only concerned with thelegal stimulants of coffeeand cocoa, as well as withcoconuts and spices such aspimento – no herbs.

Ganja in Jamaica is usu-ally sold in small quanti-ties for $100 per purchase,which is enough to makethree ‘spliffs’ or cigarettes,authoritative sources toldSunday Business.

The cost per pound is$7,000 to $8,000 (US$66 toUS$75), though the price“depends on potency”.

Under Colorado’s newlaw, marijuana can be soldlike alcohol, with residentsable to buy up to one ounce,and non-residents a quarterof an ounce.

The sale of the drug istaxed in the same way asalcohol, and state officialshave said they expect toraise hundreds of millions inrevenue from the businessactivity.

The levy comprises a 15per cent excise tax and a 10per cent sales tax. The firstUS$40m to be earned fromtaxation is to be used forschool construction, accord-ing to The Denver Post,from Colorado.

More than 130 businessesin Colorado applied for thelicence to sell cannabis,mainly in the capital ofDenver, according to theBBC. The state has a popu-

lation of about twice thesize of Jamaica, with 5.2million people, and Denverhas a population of about630,000.

In Colorado, although mar-ijuana is now legal for bothmedicinal and recreationaluse, there can be a large pricedifferential between the two.A one-eighth ounce of a mar-ijuana product, called ‘GirlScout Cookies’, recently soldfor US$50 plus US$14.25 intaxes, for a total ofUS$64.25, according to spe-cialist magazine High Times.But if bought with a prescrip-tion the cost would be halved.

PRICE CONTROLUruguay, where the state

has legalised the drug andtaken control of the mar-ket, has set the price ofmarijuana at around US$1per gram. That translates toabout US$28 per ounce.

The South Americancountry is weighing exportsof the drug to LatinAmerican markets, forcingnew conversation on drugpolicies inside some ofthose countries.

Medical marijuana is cur-rently legal in 20 US states,and at least three more aremoving towards legalisa-tion, said Seiveright,including New York, Alaskaand Florida.

In Europe, the CzechRepublic, The Netherlands,Spain and Portugal havelegalised the herb to someextent.

Closer to home, CostaRica and Puerto Rico are the“next places to watch”, saidthe ganja coalition director.

Inside Jamaica, ganjafarmers plan to launch theirown association at theUniversity of the West Indieslater this month.

richard.browne@gleanerjm.com

GK gives AndreaCoy new assignmentANDREA COY, who was tapped

almost two years ago to run Hardware& Lumber Limited (H&L), is on the

move again inside the GraceKennedy Group.Coy will be giving up her hard hat at a

time when H&L has regained solid footingin the market and is again generating posi-tive returns for GraceKennedy.

H&L Chairman Erwin Burton, inannouncing senior management changes onFriday, said Coy will take up the position ofSenior General Manager, Global CategoryManagement in the GK Foods Division ofGraceKennedy Limited, effective March 1.

Donna Doran, the current H&L chieffinancial officer, will assume the position ofacting CEO at the same date, while financialaccountant Jonathan Ruddock will act asCFO.

“Mrs Coy has done a tremendous job atH&L. She worked in tandem with the teamto effect very positive changes,” saidBurton.

Coy was appointed CEO of the businessback in April 2012. H&L’s current yearendresults are pending, but its nine-monthreport to September 2013 recorded profit ofabout $90 million, or $1.11 per share. Thatcompares to one cent per share in the com-parative 2012 period.

Revenues have surpassed $6 billion annu-ally under her management.

With a background in auditing andfinance, Coy has become known as some-thing of a change-management specialistwithin GraceKennedy.

She is now expected to help position theconglomerate as a global consumer group.

“Mrs Coy has done a tremendous jobwith H&L and has focused on not only thegrowth of the business but also on thestrengthening of the management team ofthe company,” said group CEO DonWehby.

“We know her experience will serve uswell as we seek to attain our goal of becom-ing a global consumer group,” he said.

Coy first joined the group in April 2005as financial controller for supermarket chainHi-Lo Food Stores.

DORAN TAKES BATONBurton said Doran, who will take Coy’s

place at H&L in the interim, has been “veryinstrumental in the determination and imple-mentation of the strategies that accountedfor H&L’s turnaround”.

Prior to joining the team at H&L in May2012, Doran worked in finance at RedStripe Jamaica for 12 years.

“While there, she received recognition forsuccessful SAP implementation andupgrades, as well as improving organisa-tional capability,” GK said.

Doran also worked at the state-run UrbanDevelopment Corporation as deputy generalmanager in charge of finance, treasury andinvestments for approximately 18 months.

Ruddock is a veteran of the group, havingspent 13 years with Grace Food Processorsand four years with GraceKennedy’s CentralFinance Unit as accountant. He was trans-ferred to H&L as financial accountant in2010.

business@gleanerjm.com

TAJ sets April date for informationdisclosure requirements

JERMAINE BARNABY/STAFF PHOTOGRAPHER

Andrea Coy, CEO of Hardware andLumber Limited.

GANJACONTINUED FROM C1