Tax reprieve welcomed

Tax experts have welcomed the finance ministry's tax incentive programme and expect it to be a success.The ministry recently introduced an incentive programme through which it encourages tax defaulters to pay. Currently, the ministry is owed N$19 billion in tax, interest on tax, interest on interest and penalties.“Tax amnesty programmes have been used successfully all across the globe to widen the tax net. The tax incentive programme is also aimed at speeding up collections for some outstanding tax amounts,” says PricewaterhouseCoopers (PwC) tax director Johan Nel.“We believe this can be successful, as there is a significant incentive now for taxpayers who are behind on tax payments to make these payments during the Incentive programme period (1 February to 30 June). We advise taxpayers to establish their tax status as soon as possible, and to get their affairs in order during this period.”Another benefit of the programme is that it will make it easier for Inland Revenue to clean up the existing tax system, remove old and disputed penalty and interest amounts, and get as many as possible taxpayers in good-standing position prior to moving over to the new Integrated Tax Administration System (ITAS), Nel says.“We believe that Inland Revenue's intention was to keep guidelines as simple as possible, which is a benefit but could also result in some interpretation differences. We are experiencing some inconsistencies in the way administrative procedure are applied between different officials and offices, specifically in respect of requirements that all outstanding tax returns should and need not be submitted, that amnesty forms can only be accepted for penalties and interest showing on the Inland Revenue system,” Nel explained.“In general we believe that the incentive programme could hold benefits for taxpayers and for government and would like to encourage taxpayers to engage with Inland Revenue and use the opportunity to get their tax affairs in order.”Standard Bank's head of private banking, Britt du Plessis, has also welcomed the reprieve. “As taxpayers we must now give our wholehearted support to the government in its endeavours, especially in view of the fact that our economy is facing liquidity constraints. We need to pay taxes to sustain the much-needed infrastructure like hospitals, roads and schools in our country,” Du Plessis says.“Government is in fact making it possible and affordable for everyone to come clear. Non-payment of taxes also has an impact on pension payouts upon retirement. If there are unpaid taxes, taxes are settled first before pensions are paid out. So it is always for one's own good to be in good standing; for your own sake and that of your family.”OGONE TLHAGE

Tax reprieve welcomed

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Namibian Sun 2025-06-25

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Tax reprieve welcomed

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Namibian Sun 2025-06-25

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