AG’s report raises concerns about leasing arrangements outlined by TAJ

Tax Administration Jamaica (TAJ) has released details regarding public expenditures on two properties it has leased for operational purposes. The properties are located in Mandeville, Manchester, and Annotto Bay, St. Mary. The delay in occupancy of these properties is attributed to the lengthy procurement process and build-out required to make the spaces suitable for tax services. In Mandeville, the leasing arrangement was made to construct a one-stop Revenue Service Centre to consolidate tax services currently offered from two separate locations.

The procurement process for the Mandeville RSC involved two separate processes – one for a consultant to manage the project and another for the build-out contractor. The process for the build-out contractor faced delays due to the addition of four additional contractors in the category after the expression of interest phase. The lease agreement for the Mandeville property was signed in April 2018 and completed in September 2020. The timeline for the build-out, occupancy, and opening of the space is expected to take several more months, with completion projected for September 2025.

In the case of the Annotto Bay property, TAJ identified a former bank as an ideal location to relocate the Annotto Bay Tax Office. The procurement process for this property involved engaging a private valuation entity, signing the lease agreement, and requesting changes to the layout of the space. The current Annotto Bay Tax Office has been closed since a 5.6 magnitude earthquake in November 2023 rendered the building unsafe for occupancy. The new space has already been leased, and the engagement of a contractor to carry out the necessary work is at the evaluation stage.

TAJ emphasized its commitment to observing the requirements of the Government of Jamaica Procurement Policy as it works to provide suitable accommodations for customers and staff. The process for both properties involved multiple steps, including the engagement of consultants, evaluation of bids, and approval by various committees. Despite facing delays and challenges in the procurement process, TAJ remains focused on completing the necessary renovations and opening the new locations to serve the tax-paying public effectively.

Overall, the release by TAJ aimed to provide transparency regarding the costs and arrangements for the leased properties in Mandeville and Annotto Bay. The detailed timeline for the procurement process and build-out of the spaces highlights the complexities and challenges involved in securing suitable locations for tax services. By outlining the various steps taken and the projected timelines for completion, TAJ seeks to address questions and concerns related to public expenditures on these properties and demonstrate its commitment to providing efficient and convenient tax services to the public.