E-tax rollout postponed again

24 April 2019 | Economics

The finance ministry introduced a new electronic income-tax filing system in January, but deadlines are repeatedly being postponed.

The date when the new system must become operational has been delayed by a seemingly ineffective system.

Experts are critical of an apparent lack of project management, which usually provides a systematic introduction in stages, with the old system running parallel to the new one as a back-up.

Yesterday morning, the ministry announced that the monthly declaration of pay-as-you-earn (PAYE) deductions, which employers had to make from 1 April, has been postponed to 20 September 2019.

The 30 June deadline for the submission of individual tax returns remains unchanged, but it will have to be done manually as in the past.

The Receiver of Revenue had instructed businesses to declare each employee's tax deduction monthly from the beginning of the new fiscal year.

According to the Receiver, most companies were not ready to make these declarations.

But sources in the business community say in principle these declarations do not pose any challenge, as any electronic payroll system provides data on individual tax deductions. They say the problem is more likely that the ministry required the data in a format different from those used by payroll programs used in the private sector. In an attempt to solve the problem, the finance ministry created an Excel spreadsheet, which companies were expected to fill in by copying and pasting data entries.

Some professionals fear this will expose the tax system to fraud.

Meanwhile, taxpayers are unsure what to do as the deadline for tax returns draws nearer.

The revenue office has repeatedly reminded all registered taxpayers to register on its internet portal, called the Integrated Tax Administration System (ITAS).

According to experts, no individual is obliged to register electronically, nor is it obligatory to file income tax returns electronically.

They say even the business community is not obliged to do so yet, but will eventually have to switch to the electronic system.

In the case of companies, ITAS provides a fully integrated system to control employees' tax deductions, value-added tax (VAT), and the tax liability of each company and its owner/s.

Therefore, at the beginning of the year, the tax office had also requested that future VAT periods and declarations be aligned with the company's financial year-end.

Again, treasury backed off when this turned out to pose a massive challenge to various businesses' cash flows. The backlash was accompanied by a promise that there would be no fines for outstanding VAT payments. Here too, many experts have their doubts, because if the system has to be constantly rewritten and adjusted, it is reasonable to assume that a perfect storm is brewing, where people will be inundated by demands and penalties.

Similar News

 

Life compared to the Big Apple

3 hours ago | Economics

Jo-Maré Duddy – Consumers’ burden over the past 12 months has lightened somewhat compared to fellow shoppers elsewhere in Africa: Namibia is currently rated as...

Keeping up with the neighbours

3 hours ago | Economics

LuandaYou would need around US$2 535.97 in Windhoek to maintain the same standard of living that you can have with US$7 600 in Luanda, assuming...

Zim inflation almost doubles, stirring memories of economic chaos

3 hours ago | Economics

MacDonald Dzirutwe and Karin Strohecker - Prices of cooking oil and other basics soared in Zimbabwe as inflation nearly doubled in June, piling pressure on...

German investors turned off

3 hours ago | Economics

German Bundesrat (Federal Council) president Daniel Günther says German investors are ready to invest in Namibia, but policy uncertainties around wealth redistribution and property rights...

Refugees target global markets with luxury crafts

3 hours ago | Economics

Nita Bhalla - Rwandan refugee Anita Claudine knows the odds are stacked against her, but the fashion designer is unfazed in her ambition to one...

Filing tax returns online

1 day - 16 July 2019 | Economics

Elizabeth Joseph The Integrated Tax Administration System (ITAS) is a technology solution that allows taxpayers to file their returns online, which creates ease and comfort.A...

Economic panel targets N$14bn

1 week ago - 04 July 2019 | Economics

The high-level panel on the Namibian economy is scheduled to host an investment summit at the end of this month, which will ignite the process...

West African 'eco' dream gives economists nightmares

2 weeks ago - 03 July 2019 | Economics

Philippe Siuberski and Malick Rokhy - For decades it was a dream of West African finance ministers: ushering in a regional single currency to boost...

Not everybody a winner in record US expansion

2 weeks ago - 03 July 2019 | Economics

Trevor Hunnicutt - Last month Pink Floyd frontman David Gilmour sold his guitar collection for US$21.5 million, including one piece - his famed "Black Strat"...

Hunger for beef offers rewards, risks for pastoralists

2 weeks ago - 03 July 2019 | Economics

Célia Lebur - With over 200 million people and an emerging middle class, Nigeria is witnessing a boom in demand for meat that offers potential...

Latest News

Keeping up with the neighbours

3 hours ago | Economics

LuandaYou would need around US$2 535.97 in Windhoek to maintain the same standard of living that you can have with US$7 600 in Luanda, assuming...

88 schoolgirls fall pregnant in...

3 hours ago | Education

Eighty-eight learners, including two girls in Grade 7, fell pregnant in the Oshana Region during the first term of 2019. Oshana governor Elia Irimari...

Stop blaming Aawambo - Kapofi

3 hours ago | Government

Home affairs minister Frans Kapofi has cautioned against tribalism and pointed out that there is a growing perception that only the Aawambo are beneficiaries of...

Mom begs for mercy

3 hours ago | Justice

A mother of three minor children is asking the High Court to reduce her four-year prison sentence, or fine her instead, after she pleaded guilty...

Relevant IFRS themes: Anytime, anywhere

3 hours ago | Business

A good understanding of International Financial Reporting Standards (IFRS) is crucial to the financial reporting process of IFRS reporters. Banks and Insurers in particular have...

Standard Bank faces strike vote

3 hours ago | Labour

ELVIRA HATTINGH Members of the Bank Workers Union of Namibia (Bawon) are to vote on whether to strike...

Let us tread carefully

3 hours ago | Opinion

When expectations are not met, citizens wronged in this regard should have channels, means and ways to air their grievances and have them addressed effectively.In...

Big banks target South Africa's...

3 hours ago | Business

Emma Rumney - South Africa's biggest banks are betting cut-price accounts, big mortgages and offers on everything from Adidas backpacks to Xboxes will help them...

Zim inflation almost doubles, stirring...

3 hours ago | Economics

MacDonald Dzirutwe and Karin Strohecker - Prices of cooking oil and other basics soared in Zimbabwe as inflation nearly doubled in June, piling pressure on...

Load More