Edgar Brandt Windhoek-The Ministry of Finance yesterday confirmed that it will extend the current tax amnesty to Tuesday, April 3, 2018. This after the ministry introduced the second Tax Arrear Recovery Incentive Programme, which was initially to end on March 11. Finance permanent secretary Ericah Shafudah yesterday confirmed the extension is applicable to all taxes administered by the Inland Revenue Department. These include Income Tax, Value Added Tax (VAT), VAT Import, Employees Tax Stamp Duty, Non-resident’s Shareholders Tax as well as Tax on Royalties. Late last year New Era reported that only about N$243 million, or approximately six percent of the N$4 billion owed to the state in taxes, had been collected five months after the introduction of the first tax amnesty in February 2017. The second tax amnesty, which was announced to be the final extension, commenced on September 11 and was supposed to run until March 11, 2018. “Taxpayers who choose not to partake in this incentive programme shall become liable for the full payment of taxes and interest owing to the Receiver of Revenue… [The] Inland Revenue Department will impose the full extent of tax laws through the recovery provisions, which include attachment of assets, appointment of agents and recovery of tax from third parties,” Shafudah warned when announcing the second tax amnesty. The aim of the tax amnesty is to collect all outstanding taxes owed to the state and to offer a limited-time reprieve to taxpayers with outstanding tax balances to settle their capital amounts in full and pay only part of their interest charges. “The ministry will waive the penalties levied on tax payments and submission of tax returns and write off 70 percent of the interest balance on all tax accounts for taxpayers who pay the capital tax amount in full and 30 percent of the interest balance. There shall be no write-off of any capital amount,” Shafudah explained. Those that are unable to settle the balance by making only one payment are required to pay the first instalment in the month of their registration and thereafter pay monthly instalments until the debt is settled within the tax incentive period. “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,” Shafudah advised.
2018-03-15 09:22:06 6 months ago