The Namibia Revenue Agency (Namra) has announced plans to scrutinise zero-tax return submissions, as a result of suspicions of widespread tax evasion from the business community.
According to Namra commissioner Sam Shivute, certain businesses have been evading taxes by declaring zero profits despite continuing to trade and making significant profits.
Namra revealed that from 2017 to date, 56 881 taxpayers or businesses submitted 172 021 zero-tax returns for income tax, while about 16 000 taxpayers submitted 138 245 zero-tax returns for value-added tax (VAT) for the same period.
“Therefore, Namra is establishing an investigative team as from 1 July 2023 to determine the validity of the submitted zero-tax returns,” Shivute said.
He said some businesses that have submitted zero-tax returns have continued to trade and make profits, even securing multimillion-dollar tenders from the government and public enterprises.
In the meantime, Namra urges all businesses registered for tax purposes that have erroneously submitted zero-tax returns, whether for income tax or VAT, to immediately contact its offices nationwide.
Shivute said these businesses are strongly encouraged to revise their returns, make necessary payments, or arrange payment plans before the deadline of 30 June this year.
“In the event that no revision is made by the taxpayer by the end of next month and an audit establishes that there are amounts owing in respect of the various taxes, Namra will then invoke the applicable recovery framework, which among others includes the appointment of third-party agents and litigation,” Shivute said.
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