Tax evaders warned

DEPUTY Minister of Finance Tjekero Tweya has warned individuals and businesses that Government was hot on the heels of tax evaders and abusers of the system.

Putting to the National Assembly on Tuesday that the State only had about 80 000 registered taxpayers, he questioned whether it was receiving its just dues from tax collection. Tweya said this situation begged further investigation, taking into cognisance the extent of the country’s trading activities.”Unkindly be informed that your days are numbered in small numbers,” he warned.The civil service alone has roughly the same number of employees as there are registered taxpayers in Namibia.Tweya said it was well known that individuals have long been engaged in self-enrichment schemes through fraudulent tax refund claims.”We are aware that in some incidents staff from the Office of the Receiver of Revenue get directly involved in these fraudulent activities.These claims are all on record; we have all the files of registered taxpayers,” he said.Tweya warned that despite the length of time that may have elapsed, these records were subject to audit.He suggested that the tax collection system be overhauled by increasing the staff complement of the Receiver’s office, improving the efficiency and effectiveness of service delivery in tax collecting offices and closing the loopholes in free trade activities.Tweya said the Ministry was investigating the implementation of a tax system for individuals that would minimise refunds or even completely do away with them.This, he said, would ensure that employers comply fully with tax measures.As with the case of individuals not registering to pay tax, so too Tweya said the Ministry was aware of businesses not registering to pay Value Added Tax, although fraudulently charging customers for VAT.A business with an annual revenue of more than N$200 000 is required to register for VAT.He said the Ministry was aware of businesses that are awarded tenders, claim payments including VAT, but do not pay VAT over to the Receiver.”As we are aware of these fraudulent behaviours, VAT claims by businesses will be traced back to the entities that received the supplies,” he said.”We must remember that taxes are the major source of Government revenue and, therefore, must be upheld and protected at all times.”As a newcomer to parliament, Tweya made the remarks in his maiden speech in the House during the debate on the National Budget.Tweya said this situation begged further investigation, taking into cognisance the extent of the country’s trading activities.”Unkindly be informed that your days are numbered in small numbers,” he warned.The civil service alone has roughly the same number of employees as there are registered taxpayers in Namibia.Tweya said it was well known that individuals have long been engaged in self-enrichment schemes through fraudulent tax refund claims.”We are aware that in some incidents staff from the Office of the Receiver of Revenue get directly involved in these fraudulent activities.These claims are all on record; we have all the files of registered taxpayers,” he said.Tweya warned that despite the length of time that may have elapsed, these records were subject to audit.He suggested that the tax collection system be overhauled by increasing the staff complement of the Receiver’s office, improving the efficiency and effectiveness of service delivery in tax collecting offices and closing the loopholes in free trade activities.Tweya said the Ministry was investigating the implementation of a tax system for individuals that would minimise refunds or even completely do away with them.This, he said, would ensure that employers comply fully with tax measures.As with the case of individuals not registering to pay tax, so too Tweya said the Ministry was aware of businesses not registering to pay Value Added Tax, although fraudulently charging customers for VAT.A business with an annual revenue of more than N$200 000 is required to register for VAT.He said the Ministry was aware of businesses that are awarded tenders, claim payments including VAT, but do not pay VAT over to the Receiver.”As we are aware of these fraudulent behaviours, VAT claims by businesses will be traced back to the entities that received the supplies,” he said.”We must remember that taxes are the major source of Government revenue and, therefore, must be upheld and protected at all times.”As a newcomer to parliament, Tweya made the remarks in his maiden speech in the House during the debate on the National Budget.