Tax defaulters get lucky break
Tax defaulters get lucky break

Tax defaulters get lucky break

The incentive scheme aimed at recovering unpaid taxes has been extended to 3 April.
Ogone Tlhage
OGONE TLHAGE



Tax defaulters got another lucky break when the ministry of finance announced yesterday that it would be extending the Tax Arrears Recovery Incentive Programme, which was due to lapse on 11 March 2018.

The extension covers income tax, value-added tax (VAT), import, employee’s tax stamp duty, non-resident shareholders’ tax and tax on royalties.

The ministry of finance announced that the arrears programme, meant to encourage defaulting taxpayers to settle outstanding taxes, was extended to 3 April 2018. This marks the third extension of the incentive programme.

“The ministry of finance will waive the penalties levied in tax payments and submission of tax returns and write off 70% of the interest balance on all tax accounts for tax payers who pay the capital tax amount in full and 30% of the interest balance,” the ministry of finance said in a statement.

Namibia Chamber of Commerce and Industry northern branch chairperson Tomas Indjii said a reduction in government spending made it hard for small and medium enterprises to honour their tax obligations because of a reduction in revenue experienced by these businesses.

“Small and medium enterprises were keen to honour outstanding tax obligations to government,” he said. A reduction in government spending over the last two years made it difficult for tax defaulters to pay back, Indjii said.

“This lack of business has resulted in small and medium enterprises being unable to make payments based on the payment arrangements agreed upon, also of note is the festive season which has just passed, where most business close,” he said.

Indjii said an extension would help defaulters pay their tax obligations to the ministry of finance.

“We are requesting the ministry to further extend the deadline for registration and payment by another three to six months if possible. This would enable taxpayers, especially the ones that had already registered and started making payments, to pay off their instalments,” he said.

Iindji thanked businesses who were paying their taxes and encouraged business people in the country to visit the ministry of finance see if they had any tax obligations and to make arrangements to pay outstanding tax obligations.

Northern business people have been reported to be among the majority of tax defaulters in the country, Confidente reported in 2017.

Finance minister Calle Schlettwein said in 2017 that the taxpayer population for the ministry’s Oshakati Inland Revenue Regional Office contrasted vastly with the amount of tax paid in the north.

According to tax administration information, the Oshakati regional office has the second highest tax register in the country, after Windhoek, but in terms of tax collection, the northern office is said to be in fifth place out of the eight tax regions, according to Confidente.

Commenting on the matter, Iindji said that the data regarding northern businesses would need to be verified accordingly as most of the big businesses’ taxes were handled at the Large Tax Pay office in Windhoek Ausspannplatz and cases involving the non-payment of tax would be more prevalent at the Windhoek office.

Schlettwein noted that during the 2015/16 financial year, only N$36.8 million was collected by the northern office, while the total taxpayer register stood at 81 114, which equated to N$450 being collected from each taxpayer.

Out of the total number of taxpayers for the whole tax region, only 22 taxpayers are huge payers.

During the introduction of the programme in December 2016, Schlettwein has previously said the amount the government was owed had ballooned to N$19 billion from N$4 billion because of interest and penalties over the past 20 years. This means that the government will have to write off about N$15 billion in penalties and interest once the amnesty is put in place.

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Namibian Sun 2024-03-28

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Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Currency: GBP to NAD 23.95 | EUR to NAD 20.51 | CNY to NAD 2.63 | USD to NAD 18.99 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.27 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.99 | USD to ZMW 24.77 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 210.71/OZ UP +0.91% | Copper US$ 3.98/lb DOWN -0.0004 | Zinc US$ 2 450.10/T DOWN -0.26% | Brent Crude Oil US$ 87.06/BBP UP +0.78% | Platinum US$ 906.57/OZ UP +1.31% Sport results: Weather: Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Economic Indicators: Currency: GBP to NAD 23.95 | EUR to NAD 20.51 | CNY to NAD 2.63 | USD to NAD 18.99 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.27 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.99 | USD to ZMW 24.77 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 210.71/OZ UP +0.91% | Copper US$ 3.98/lb DOWN -0.0004 | Zinc US$ 2 450.10/T DOWN -0.26% | Brent Crude Oil US$ 87.06/BBP UP +0.78% | Platinum US$ 906.57/OZ UP +1.31%