Government is holding a series of workshops through the week for taxpayers seeking guidance in filling in new payroll tax returns.

The new tax returns have come about as a result of the Payroll Tax Rates (Special Provisions) Act 2001, which was tabled in the House in November. The workshops, which are running this week for an hour and a half in the morning and afternoon, are led by Government's senior tax auditor, Michael Crichlow.

Under the special provisions amendment, small businesses including taxi drivers, and retail stores and restaurants are being given temporary relief with reduced payroll tax rates. The Act amends the Payroll Tax Rates Act 1995, and applies to the fourth quarter of 2001 and the coming quarter.

The deadline for fourth quarter returns falls on January 15.

But, the additional paperwork has come under fire from Opposition Leader Grant Gibbons who said: “One of the challenges of small business is that people don't always have a lot of time to leave their business and attend a workshop.”

And speaking in the House, in debate on the amendment, Dr. Gibbons questioned how the reduced taxes would be filed.

“Payroll tax forms become more complicated each year,” he said. “How will businesses deal with this? Businesses are a lot leaner these days - if forms are more complicated, some businesses may say it is not worth it.”

Finance Minister Eugene Cox, also speaking in the House, said the relief would be worth a total of $2.4 million, but UBP critics said the sum was too little too late.

In rebuttal of Mr. Cox's assertion that the relief would have a significant impact on employers, Dr. Gibbons broke the reduction in to actual savings for employers. Dr. Gibbons calculated that with an annual payroll of $100,000, there would be a business savings of less than $40 per week.

Dr. Gibbons asked rhetorically: “Does this Government really think this is going to save jobs, for a business that is on the brink? Everything helps but this does not have much impact,” he said.

Meanwhile, Tax Commissioner Heather Jacobs Matthews said her concern was that people would know how to file the forms: “We want to help people do their returns properly.”

And she told The Royal Gazette the workshops are not new, as the department holds the sessions quarterly, but she did say this time around, the session is geared towards those businesses who qualify for tax relief.

Mrs. Jacobs Matthews also said the department is available to help taxpayers every week day from 8.30 a.m. to 5 p.m. She added that the number of taxpayer queries had not escalated with the new forms but was consistent with other quarters.

Mrs. Jacobs Matthews did admit that there had been questions about who qualified for the relief. She said in order to qualify businesses should have annual payrolls under $200,000 or their core business must be retail or restaurant. She defined retail as being direct sales to consumers for their personal use.

She said the Tax Commissioner's office can assist those companies who are not sure whether or not they qualify for the reduced tax rates.