Lifestyle audits kick off

07 November 2019 | Economics


The ministry of finance is gunning after suspected tax defaulters by means of lifestyle audits.

Tax commissioner Justus Mwafongwe told Namibian Sun that the campaign to recover unpaid taxes also involves visiting businesses to establish whether they have registered as taxpayers.

“We have started with lifestyle audits; we have a dedicated team of auditors that are focusing on lifestyle audits and there are some cases that we have already completed and actually collected some money,” said Mwafongwe.

“We are very much aware that there are high net-worth individuals who are probably not declaring the correct amount of income that they are earning, not paying the fair share of their contributions,” he said.

Mwafongwe was also asked to verify whether the ministry was succeeding in collecting outstanding taxes from businesses and individuals based in the north who had not been paying taxes.

Finance minister Calle Schlettwein said at an event hosted by the Namibia Chamber of Commerce and Industry that for the 2015/16 fiscal year, the ministry’s Oshakati office had collected only N$36.8 million from 81 114 taxpayers. That amounted to an average of N$450 per taxpayer.

In contrast, the Keetmanshoop office’s tax collection per taxpayer stood at N$1 527.

“It cannot be plausibly argued that the combined economic activities of the Oshakati region are significantly less than those of Keetmanshoop,” Schlettwein was quoted as saying.

Mwafongwe said there had been improvement in taxes collected in the north. The ministry was asked to give a breakdown of tax collection per tax office in January, but no response has been received yet.

“We were looking at the figures in terms of collections from the northern tax offices, there is an improvement,” Mwafongwe said.

“Even when you look at our targets given for that office, for the past two quarters they have actually met their targets so it’s an indication that there is an improvement in terms of compliance … but again, this is not to say we should now relax.”

According to him, there are compliance issues throughout the country and not only at the Oshakati office.

“There are still a lot of non-compliance cases, not only in the north but the whole country. The Integrated Tax Administration System (ITAS) will do wonders for us, but we need to continue with auditing activities, investigations and collections so that we make sure these people are compliant,” he said.

Similar News


Fewer than 190 000 formally employed

4 days ago - 21 January 2020 | Economics

Namibia had just under 190 000 formally employed people in the private sector by 2018.This is according to a new Institute for Public Policy Research...

No Brexit blues for Namibia

5 days ago - 20 January 2020 | Economics

No obstacles are foreseen for Namibia from a trade point of view as far as Brexit is concerned, local stockbroking firm IJG Securities said in...

Debts, joblessness fuel latest rating downgrade

1 month - 09 December 2019 | Economics

Rating agency Moody's downgraded Namibia's economy on Friday to a Ba2 rating but changed the outlook to stable, citing among other things rising government debt...

Interest rates remain unchanged

1 month - 04 December 2019 | Economics

The Bank of Namibia (BoN) this morning left its repo rate unchanged at 6.5%.This means the prime lending rate of local commercial banks will remain...

Gender inequality hits home

1 month - 04 December 2019 | Economics

Gender discrimination in the labour market and the high youth unemployment rate needs to be tackled in order to close gaps in the housing market...

IMF chief urges debt wisdom in maiden Africa visit

1 month - 04 December 2019 | Economics

Diamniadio - New International Monetary Fund chief Kristalina Georgieva this week highlighted Africa as a lure for investment as she kicked off her maiden visit...

Sudan militia leader grew rich by selling gold

1 month - 04 December 2019 | Economics

Khalid Abdelaziz, Michael Georgy and Maha El Dahan - Late last year, as former president Omar Hassan al-Bashir's hold on power weakened, one of Sudan's...

Zimbabweans grow more despondent

2 months ago - 20 November 2019 | Economics

Fanuel JongweTwo years ago, Linos Mutepera was among hundreds of thousands of Zimbabweans who celebrated the toppling of long-time ruler Robert Mugabe with tears of...

Many pitfalls in reform of Africa's CFA franc

2 months ago - 20 November 2019 | Economics

Pierre Donadieu and David Esnault - Calls to overhaul the West African CFA franc, a currency tied to the euro and historically rooted in French...

Fact file

2 months ago - 20 November 2019 | Economics

The CFA franc, a seven-decade-old currency shared by more than a dozen states in West Africa, has found itself in the spotlight over calls for...

Latest News

A peek into the HR...

1 day - 24 January 2020 | People

Julia MushellengaThere are a few initiatives one can use to empower employees, but my main preference is through engagement. It’s important to create engagement platforms...

Same old, same old

1 day - 24 January 2020 | Education

At Nkurenkuru Combined School in Kavango West Region, learners are being taught under trees, seated on the floor or standing for hours due to a...

Fishrot bail strategy revealed

1 day - 24 January 2020 | Justice

The six men accused of accepting bribes worth N$150 million in the so-called Fishrot scandal have so far avoided applying for bail to protect details...

N$60m in SA worker funds...

1 day - 24 January 2020 | Banking

A whopping N$60 million belonging to the South African Municipal Workers Union National Provident Fund was among the so-called investments that have gone missing as...

Bank Windhoek assigns Muukua with...

1 day - 24 January 2020 | Society

Bank Windhoek has appointed Veripura Muukua as its new Communication Practitioner, tasked with Corporate Social Investment (CSI) and Stakeholder Engagement, effective Wednesday, 15 January 2020.In...

Investing in the people

1 day - 24 January 2020 | Society

Mariselle Stofberg“A new decade signals a time for reflection and focus on new opportunities that lie untapped before us. A decade passed teaches of victories,...

Commit to be fit

1 day - 24 January 2020 | People

Mariselle Stofberg It takes exceptional perseverance and determination to continue to chase your dreams despite adversity and complications that may arise. Jonathan Mweneni Mwafangeo has...

The value of the journey

1 day - 24 January 2020 | People

Mariselle Stofberg“So many times I focused on what I wanted to become, neglecting the process required to get there. As I matured, I realised the...

The struggle kids conundrum

1 day - 24 January 2020 | Opinion

The issue of struggle kids being prioritised for cleaner and labourer jobs has again reared its ugly head in the form of ongoing protests at...

Load More