Namra investigates tax fraud involving N$833 million

The Namibia Revenue Agency (Namra) is investigating tax refund scams amounting to N$833 million.

The total refund amount under scrutiny has seen a substantial increase since the investigations commenced in March 2022, skyrocketing from an initial sum of N$15 million to N$833 million.

Investigations into tax refund scams have implicated a total of 1 168 taxpayers associated with 84 different institutions.

“As of 18 July 2023, our investigations have implicated a total of 1 168 taxpayers, employed at 84 institutions, encompassing private companies, government offices, ministries and agencies, as well as public institutions,” Namra spokesperson Steven Ndorokaze says.

Namra has since opened 56 criminal cases against tax refund scammers. So far, only five suspects have been arrested and charged.
“More suspects are expected to be arrested in the coming weeks,” Ndorokaze says.

The agency’s recovery process has yielded N$19,9 million through intensive recovery interventions.

Ndorokaze says the total refund amount under scrutiny has experienced a significant surge, starting from the initial sum of N$15 million in March 2022, and skyrocketing to N$833 million as of the latest update.

This represents a substantial increase from the N$136 million that was reported in January of the same year.

“In line with our commitment to accountability, we have issued 322 demand letters. Pursuant to section 91 of the Income Tax Act of 1981, 302 notices to agents have been issued, amounting to N$55 million,” Ndorokaze says.

Meanwhile, Namra also revealed an alarming surge in the country’s tax debt, which now stands at a staggering N$73 billion.

This outstanding amount comprises N$16,5 billion in capital tax, N$43,7 billion in penalties and N$12,6 billion in accumulated interest.

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