Tax incentive programme extended

A new tax arrears recovery incentive programme will start on 11 September and run until 11 March next year.

06 September 2017 | Government

Defaulting taxpayers have been encouraged to apply for a new tax arrears recovery incentive programme which will resume on 11 September. The tax arrears incentive programme was extended following poor take-up by tax defaulters.

Announcing the period for the new tax arrears incentive programme, the permanent secretary in the ministry of finance, Ericah Shafuda, said various categories of taxes would be considered.

“The tax arrears recovery incentive programme will commence on 11 September 2017 and run until 11 March 2018. The programme will apply to all taxes administered by the Inland Revenue department and include income tax, value-added tax, employee's tax, stamp duties, non-resident shareholders tax, and tax on royalties,” said Shafudah.

According to her, the ministry would waive up to 70% interest payable on outstanding taxes.

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

According to her, there will be no write-off of any capital amount.

She encouraged participation in the programme. “Taxpayers who intend to participate in the tax incentive programme are encouraged to register for such purposes during the months of September and October and settle their debt before benefiting from the programme,” Shafudah said.

Taxpayers who intended to make one-off settlements were encouraged to do so during the months of September and October. Taxpayers unable to settle the balance of what they owed were required to pay a first instalment that would be agreed upon with the department of Inland Revenue, after which they could pay monthly instalments until their debt was settled within the tax incentive period, explained Shafudah.

“Any taxpayer who fails to honour the instalment arrangement may be disqualified from benefiting from the incentive programme unless good cause is shown in writing before any payment becomes due and payable,” said Shafudah.

She further encouraged taxpayers to update tax accounts by filling in all tax returns at offices where their accounts are registered to obtain the most recent statements of account with the correct balances.

“Taxpayers who choose not to participate in this incentive programme shall become liable for the full payment of taxes and interests owing to the Receiver of Revenue. Inland Revenue shall impose the full extent of the tax laws through the recovery provisions which include attachment of assets, appointment of agents and recovery of tax from third parties,” warned Shafudah.

Taxpayers owe the government N$19 billion in outstanding taxes, of which about N$240 million has been paid. Only N$4 billion is principal tax owed; the remaining N$15 billion is made up of interest and penalties.

Under the recently lapsed tax arrears incentive programme which ended on 31 July 2017, the government was prepared to write off 80% of interest and penalties payable.


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