No extension on tax arrears
The cabinet is set to deliberate on the tax incentive programme in due course.
Finance minister Calle Schlettwein yesterday said that there would be no extension of the tax arrears incentive programme. The incentive programme was introduced on 1 February 2017 to help defaulting taxpayers who owe the ministry of finance billions in unpaid taxes.
Giving an update at State House, Schlettwein said he was due to receive a report that he would study and present to cabinet to make a final decision whether to extend the incentive programme.
“I will receive a report from the receiver of revenue and collectively with cabinet, take a decision as to whether we extend the tax arrears incentive programme. We are in no rush at this time to inform whether we will extend the programme,” said Schlettwein.
According to him, the finance ministry collected just over N$200 million as a result of the incentive programme introduced to help tax defaulters.
When the incentive programme was introduced, Schlettwein said the government was owed N$19 billion in unpaid taxes. N$4 billion was principal tax owed to the receiver of revenue while the remainder was made up of interests and penalties.
The Institute of Chartered Accountants of Namibia had previously raised concerns regarding the tax incentive programme. According to the Institute, defaulting taxpayers who registered for the incentive programme may not be acknowledged owing to administrative issues.
“A matter of concern to us is all those taxpayers who have complied with the tax legislation by submitting all returns and paying all self-assessed balances prior to 31 July 2017 but who have not been assessed by that date. During our meetings, the IRD has advised us that no taxpayer will be considered for participation in the incentive programme unless the formal application for participation has been lodged with the IRD,” ICAN said in a statement sent out to its members last month.
The Institute proposed that the ministry send out acknowledgement letters to defaulting taxpayers to acknowledge those that were interested in taking part.
“The ministry has not confirmed to us in writing that these taxpayers will be considered for participation in the programme. We however urge you to follow this route as it is the only way a taxpayer may be considered for participation in the programme,” ICAN said.
“Furthermore, we recommend that all taxpayers who suspect that they may have unpaid tax balances with the Inland Revenue Directorate (IRD) immediately make enquiries with the IRD and attempt to resolve the matter before the closing date of the incentive programme,” ICAN said.
OGONE TLHAGE
Giving an update at State House, Schlettwein said he was due to receive a report that he would study and present to cabinet to make a final decision whether to extend the incentive programme.
“I will receive a report from the receiver of revenue and collectively with cabinet, take a decision as to whether we extend the tax arrears incentive programme. We are in no rush at this time to inform whether we will extend the programme,” said Schlettwein.
According to him, the finance ministry collected just over N$200 million as a result of the incentive programme introduced to help tax defaulters.
When the incentive programme was introduced, Schlettwein said the government was owed N$19 billion in unpaid taxes. N$4 billion was principal tax owed to the receiver of revenue while the remainder was made up of interests and penalties.
The Institute of Chartered Accountants of Namibia had previously raised concerns regarding the tax incentive programme. According to the Institute, defaulting taxpayers who registered for the incentive programme may not be acknowledged owing to administrative issues.
“A matter of concern to us is all those taxpayers who have complied with the tax legislation by submitting all returns and paying all self-assessed balances prior to 31 July 2017 but who have not been assessed by that date. During our meetings, the IRD has advised us that no taxpayer will be considered for participation in the incentive programme unless the formal application for participation has been lodged with the IRD,” ICAN said in a statement sent out to its members last month.
The Institute proposed that the ministry send out acknowledgement letters to defaulting taxpayers to acknowledge those that were interested in taking part.
“The ministry has not confirmed to us in writing that these taxpayers will be considered for participation in the programme. We however urge you to follow this route as it is the only way a taxpayer may be considered for participation in the programme,” ICAN said.
“Furthermore, we recommend that all taxpayers who suspect that they may have unpaid tax balances with the Inland Revenue Directorate (IRD) immediately make enquiries with the IRD and attempt to resolve the matter before the closing date of the incentive programme,” ICAN said.
OGONE TLHAGE
Comments
Namibian Sun
No comments have been left on this article