N$833-million tax refund scam: 1 496 individuals and 18 companies identified in Namra investigation 

An investigation into a tax refund scam uncovered last year has revealed that the state has been swindled out of N$833 million.

This allegedly involved 1 496 individuals and 18 companies, as well as close corporations.

Namibia Revenue Agency (Namra) commissioner Sam Shivute yesterday revealed that so far, N$104.6 million has been recovered, and 57 criminal investigations have been opened against individuals, including two Namra staff members.

In 2022, Namra launched an investigation after detecting an initial N$15.2 million stolen through a tax refund scam.

“To date, 1 496 individual provisional taxpayers and 18 companies, as well as close corporations, have been identified as recipients of these fraudulent payments, resulting in the recovery of N$104.6 million,” Shivute said.

He said these individuals have defrauded the state from funds which can be used to provide essential services.

“We will continue to intensify our investigations and collaborate with the Namibian Police and commercial banks to ensure the justice process takes its course, and that all funds owed to the state are recovered,” Shivute said.

TAX REFUNDS

Meanwhile, Namra has identified 50 804 taxpayers as beneficiaries of a N$75.1-million tax refund to be paid by the end of October.

Included in this amount are refunds below N$3 000. Shivute said this is a deliberate step to reduce audit backlogs and speed up the refund process.

The highest refund amount within the group of compliant taxpayers is N$20 828.77, while the lowest is N$100. Of the total refunds, N$74.9 million is attributable to income tax, and N$259 709.42 pertains to value added tax (VAT).

This mass refund programme is part of an initiative launched by Namra in December 2023 aimed at addressing the significant backlog of pending tax refunds.

As announced in February 2024, a total of 46 772 individual salaried people and pensioners benefited from this initiative, with the cumulative value of the successful refunds amounting to N$100.9 million.

Shivute said while the majority of 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,” he said.

Shivute clarified that the mass refund programme is not the same as the recent refunds issued to government employees and certain institutions, necessitated by a change to the Income Tax Amendment Act.

TAX COLLECTION

Furthermore, Namra has collected a total amount of N$45.1 billion from 1 April to 30 September, representing an increase of N$7.1 billion, compared to the same period last year, where N$38 billion had been collected by September 2023.

Shivute said this collection equates to 52.87% of the revenue target of N$85.3 billion set for the current financial year.

“It is further 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%, relating to value-added tax refunds,” he said.