Change Tax Laws

THE Ministry of Finance through its Directorate Of Inland Revenue [IRD] may think they have done a lot but the best is yet to be seen. What is most needed today in Namibia is the restructuring of IRD whereby tax avoidance and tax evasion cease to exist.

By definition: Tax evasion refers to illegal activities deliberately undertaken by a taxpayer in order to reduce or limit his tax burden. Tax evasion is described as fraud, deceit, misrepresentation and non-disclosure of information. A simple example of tax evasion is where a taxpayer omits income from his annual tax return.
Many countries resorted to fight tax evasion and avoidance through tax income law and tax tribunals. What can Namibia do to fight tax evasion, avoidance, maximise tax compliance and maximise efficiency in revenue collection?
Zambia, Lesotho, Kenya, Tanzania and Burundi revenue authorities have done it. We cannot shift the blame to a taxpayer after 12 months of wrong tax. Today taxpayers are liable to pay arrear taxes and penalties because of employers who have failed to withhold tax. Billions are owed by taxpayers which was not supposed to be the case.
Frankly speaking, the majority of taxpayers who owe the Receiver Of Revenue are from the government. Let the government pay that outstanding tax. It’s better to change our income tax law to make sure the employer makes the correct calculations.

Oscar Matengu
By email

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