Rudolf Gaiseb
The Namibia Revenue Agency (NamRA) has recovered N$104.6 million from fraudulent tax refunds.
“In March 2022, NamRA announced an investigation into fraudulent tax refunds that had been paid to certain taxpayers. To date, 1 496 individual provisional taxpayers and 18 companies, as well as close corporations, have been identified as recipients of these fraudulent payments, and criminal cases have been opened against 57 individuals, including two NamRA staff members.
“We will continue to intensify our investigations and collaborate with the Namibian Police and commercial banks to ensure that justice takes its course and that all funds owed to the state are recovered,” NamRA commissioner Sam Shivute said on Thursday.
Furthermore, the agency announced that from 1 April 2024 to 30 September 2024, it collected a net amount of N$45.1 billion, representing an increase of N$7.1 billion compared to the same period last year, where N$38 billion was collected.
“This collection equates to 52.87% of the revenue target of N$85.3 billion set for the current financial year, underscoring our continued efforts to enhance revenue-collection and improve tax compliance across the nation.
It is important to note that the revenue generated for the period under review is made up of 65% from domestic taxes and 35% from customs and excise. In terms of refunds, N$5.1 billion was disbursed to taxpayers following audits and verifications, with N$4.8 billion accounting for 95% of value-added tax (VAT) refunds,” Shivute stated.
Refund galore
In accordance with its mass tax refund strategy, the agency will this month alone give tax refunds to 50 804 taxpayers who have been identified as beneficiaries of this process.
In December 2023, NamRA launched the mass tax refund exercise to address the backlog of pending tax refunds.
“As announced in February 2024, a total of 46 772 individual salaried persons and pensioners benefitted from this initiative, with the cumulative value of the successful refunds amounting to N$100.9 million. Included in this amount are refunds below
N$3 000, a deliberate step by NamRA to reduce audit backlogs and speed up the refund process,” Shivute said.
The commissioner said the biggest refund within the group of compliant taxpayers is N$20.8 million, while the lowest is N$100.
Of the total refunds, N$74.9 million is attributable to income tax, and N$259 709 pertains to VAT.
He added that while most refunds have been successfully processed, N$61.8 million could not be disbursed due to unresolved taxpayer issues.
“Specifically, 27 903 taxpayers have outstanding tax returns and 10 172 have no banking details on their profiles. NamRA values the cooperation of all taxpayers throughout this process and remains dedicated to minimising delays in future refund payments. We urge taxpayers to promptly address these outstanding matters to prevent future refund rejections and to facilitate the efficient release of their refunds,” he said.
Amnesty
NamRA’s Tax Amnesty will end on 31 October 2024.
“With only 14 days remaining before the amnesty deadline, we urge all taxpayers to take advantage of this final opportunity. Our offices are open nationwide, and our staff is ready to assist taxpayers with filing their returns and applying for the amnesty. Our advice is for everyone to avoid waiting until the last minute; let us act now to benefit from this programme,” he said.
NamRA implemented the tax amnesty programme from 1 April 2023, aimed at providing relief to taxpayers struggling to settle their outstanding tax liabilities.
The amnesty offers a 100% waiver on interest and penalties, on the settlement of capital tax debts and the submission of tax returns through the Integrated Tax Administration System (ITAS).
The agency said from 1 April 2023 to 30 September 2024, a total of 128 060 taxpayers had participated in the programme, with the majority having already initiated payments.
Shivute said the programme has so far generated N$4.3 billion in revenue, with N$4 billion contributed by businesses, N$164 million by individual taxpayers, N$51 million by trusts, and N$31 million by government institutions.
He highlighted that the key objective of the amnesty is to encourage taxpayers to register as e-filers on ITAS.
“To date, ITAS has registered an impressive 528 086 taxpayers, reflecting a strong acceptance of this online system. Under the amnesty’s terms, NamRA has written off N$1.2 billion in interest and waived N$25.9 billion in penalties for accounts where the full capital was settled or where no capital was due,” he noted.
PAYE
Shivute said the refunds currently being paid out by NamRA should not be confused with the recent refunds issued to government employees and certain institutions.
“Those refunds resulted from amendments to the Income Tax Act, and as per standard procedure, employers were required to refund their employees for overpaid Pay-As-You Earn (PAYE) taxes covering the period from March to September 2024. NamRA, on the other hand, can only issue tax refunds after the end of the financial year, once taxpayers have submitted their tax returns and assessments have been completed,” he said.
One stop
He said the establishment of the first one-stop border post (OSBP) between Namibia and Botswana at the Trans-Kalahari and Mamuno border posts is progressing well.
A trial run began on 2 September 2024, allowing border agencies to assess the process and identify areas for improvement ahead of the official launch, whose date will be announced in due course.
The OSBP will streamline the movement of people and goods by allowing exit and entry formalities to be completed in one location.
“I am pleased to announce that Phase 1 is 95% complete. This phase includes a commercial terminal and passenger terminal for goods and passengers entering Namibia from Botswana. Those travelling from Namibia to Botswana will proceed to the OSBP facility in Botswana, where all formalities will be done.”
Shivute added: “Botswana has installed temporary facilities until their permanent infrastructure is completed. Both countries are working on Phase 2, and the OSBP will begin full operations while final amenities are completed.”