Taxman breathes down NIDA’s neck
The country’s tax agency has tightened its grip on the Namibia Industrial Development Agency (NIDA) over outstanding taxes.
Namibian Sun has reliably established that the state-owned enterprise was forced to settle on a payment plan - lest the Namibia Revenue Agency (NamRA) take what is due to it directly from the company’s bank account.
Although NIDA did not confirm the exact amount, Namibian Sun understands the country’s industrial agency owes the taxman N$26 million in outstanding taxes.
NIDA’s senior corporate communications manager, Wessel !Nanuseb, confirmed the agency’s tax miseries and indicated that it is paying off its tax bill in instalments.
“It is a sensitive arrangement between NamRA and its client, but I can confirm that we are progressing towards honouring our dues.
“NIDA currently has an arrangement in place with NamRA to pay the current month plus one month of any arrears outstanding,” !Nanuseb said.
Brutal recovery tactics
NIDA’s tax woes come at a time when it is owed about N$89 million - mainly in rent arrears - by a total of 1 057 active and vacated tenants, statistics made public by the trade ministry in June show.
NamRA is now increasingly using the provision of the Income Tax Act, which allows for the appointment of an agent, such as the bank that a non-compliant tax payer banks with, to make payment of any tax due from any moneys - including pensions, salary wages or any other remuneration - which may be held by said agent.
Last month, the tax agency sent shockwaves through the business community when it deducted N$33 million from the bank account of a Chinese-owned construction company that had declared no revenue - despite raking in government tenders worth close to N$1 billion.
NamRA commissioner Sam Shivute has adopted brutal tax recovery tactics in recent months, especially towards companies that are non-compliant and those suspected of defrauding the agency through false value-added tax refunds.
Last week, Namibian Sun reported that a government cleaner paid N$36 498 in income tax between 2013 and 2018, while a corporate entity that made over N$926 million during the same period paid zero taxes.
‘Hugely skewed’
In recent court papers, Shivute said many companies continue to evade tax payments and revealed that during the 2022/2023 financial year, corporate income tax amounted to a mere N$8.1 billion, compared to the N$16.1 million paid in income tax by individuals.
He also condemned the submission of false statements to NamRA regarding undue income tax returns.
“The tax burden is hugely skewed against individual tax payers. As an example, I hasten to mention that an employee that holds the position of cleaner in government between 2013 to 2018 has to date paid an amount of N$36 498 in taxes, compared to a corporate entity that has made and retained chargeable income of N$926 577 037 for the tax period of 2013 to 2018 and has paid zero taxes.
“The general compliance rate in Namibia stands at 48%, which creates an imbalance in tax collection. Some pay their taxes as required by the law, while others do not pay any taxes,” he said at the time.
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Namibian Sun has reliably established that the state-owned enterprise was forced to settle on a payment plan - lest the Namibia Revenue Agency (NamRA) take what is due to it directly from the company’s bank account.
Although NIDA did not confirm the exact amount, Namibian Sun understands the country’s industrial agency owes the taxman N$26 million in outstanding taxes.
NIDA’s senior corporate communications manager, Wessel !Nanuseb, confirmed the agency’s tax miseries and indicated that it is paying off its tax bill in instalments.
“It is a sensitive arrangement between NamRA and its client, but I can confirm that we are progressing towards honouring our dues.
“NIDA currently has an arrangement in place with NamRA to pay the current month plus one month of any arrears outstanding,” !Nanuseb said.
Brutal recovery tactics
NIDA’s tax woes come at a time when it is owed about N$89 million - mainly in rent arrears - by a total of 1 057 active and vacated tenants, statistics made public by the trade ministry in June show.
NamRA is now increasingly using the provision of the Income Tax Act, which allows for the appointment of an agent, such as the bank that a non-compliant tax payer banks with, to make payment of any tax due from any moneys - including pensions, salary wages or any other remuneration - which may be held by said agent.
Last month, the tax agency sent shockwaves through the business community when it deducted N$33 million from the bank account of a Chinese-owned construction company that had declared no revenue - despite raking in government tenders worth close to N$1 billion.
NamRA commissioner Sam Shivute has adopted brutal tax recovery tactics in recent months, especially towards companies that are non-compliant and those suspected of defrauding the agency through false value-added tax refunds.
Last week, Namibian Sun reported that a government cleaner paid N$36 498 in income tax between 2013 and 2018, while a corporate entity that made over N$926 million during the same period paid zero taxes.
‘Hugely skewed’
In recent court papers, Shivute said many companies continue to evade tax payments and revealed that during the 2022/2023 financial year, corporate income tax amounted to a mere N$8.1 billion, compared to the N$16.1 million paid in income tax by individuals.
He also condemned the submission of false statements to NamRA regarding undue income tax returns.
“The tax burden is hugely skewed against individual tax payers. As an example, I hasten to mention that an employee that holds the position of cleaner in government between 2013 to 2018 has to date paid an amount of N$36 498 in taxes, compared to a corporate entity that has made and retained chargeable income of N$926 577 037 for the tax period of 2013 to 2018 and has paid zero taxes.
“The general compliance rate in Namibia stands at 48%, which creates an imbalance in tax collection. Some pay their taxes as required by the law, while others do not pay any taxes,” he said at the time.
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