No tax write-offs
The special tax arrears programme lapses at the end of this month.
Finance minister Calle Schlettwein has said that no debt write-offs will be entertained as that would be in contravention of the relevant tax laws.
The government is owed N$19 billion in taxes. N$4 billion is principal tax while the remainder is made up of penalties and interest.
According to the minister, defaulting taxpayers have been given ample time to settle outstanding debts and should visit the Inland Revenue directorate before the special arrears programme lapses at the end of this month.
He made the comments when he addressed his staff members on Friday.
“The tax arrears programme has yielded N$242 million. That is not a good performance. As we speak there is reason to be worried the target will not be met and then we will have to consider what we have to do thereafter.”
According to him, the finance ministry was assessing the situation.
“It is a very generous offer, if it is not taken up; we need to see what the next step is because those arrears cannot be written off. There are a number of options that we are interrogating. We will see where we end up in two weeks' time.
“The [yet to be established] revenue agency must make sure we do not land ourselves in these situations,” added Schlettwein.
Giving an update on the planned revenue agency, he called the development a step forward.
“The establishment of the tax office is a significant change from what we are used to at the Inland Revenue directorate. It touches on all our lives,” said Schlettwein.
The revenue agency is expected to become fully operational next year. “Day one is expected in 2018 once budget provisions and transition arrangements are finalised,” he said.
“I want to appeal to all of you to make the transition smooth and as easy as possible. The change will be there for the better. Revenue flows must not be interrupted during the transition period,” Schlettwein said.
He gave an update on proposed changes to the Financial Markets and Institutions and National Special Risks Association bills
“The Financial and Institutions Market Bill is to be tabled in the last session of parliament. Its finalisation should not be further delayed. The National Special Risks Insurance Association Bill is also finalised. The NASRIA Bill will go to the National Council for scrutiny. It will come back to the National Assembly in September and then to the president for signature,” he said.
OGONE TLHAGE
The government is owed N$19 billion in taxes. N$4 billion is principal tax while the remainder is made up of penalties and interest.
According to the minister, defaulting taxpayers have been given ample time to settle outstanding debts and should visit the Inland Revenue directorate before the special arrears programme lapses at the end of this month.
He made the comments when he addressed his staff members on Friday.
“The tax arrears programme has yielded N$242 million. That is not a good performance. As we speak there is reason to be worried the target will not be met and then we will have to consider what we have to do thereafter.”
According to him, the finance ministry was assessing the situation.
“It is a very generous offer, if it is not taken up; we need to see what the next step is because those arrears cannot be written off. There are a number of options that we are interrogating. We will see where we end up in two weeks' time.
“The [yet to be established] revenue agency must make sure we do not land ourselves in these situations,” added Schlettwein.
Giving an update on the planned revenue agency, he called the development a step forward.
“The establishment of the tax office is a significant change from what we are used to at the Inland Revenue directorate. It touches on all our lives,” said Schlettwein.
The revenue agency is expected to become fully operational next year. “Day one is expected in 2018 once budget provisions and transition arrangements are finalised,” he said.
“I want to appeal to all of you to make the transition smooth and as easy as possible. The change will be there for the better. Revenue flows must not be interrupted during the transition period,” Schlettwein said.
He gave an update on proposed changes to the Financial Markets and Institutions and National Special Risks Association bills
“The Financial and Institutions Market Bill is to be tabled in the last session of parliament. Its finalisation should not be further delayed. The National Special Risks Insurance Association Bill is also finalised. The NASRIA Bill will go to the National Council for scrutiny. It will come back to the National Assembly in September and then to the president for signature,” he said.
OGONE TLHAGE
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