Namra gets tough on fishing companies

… recovers N$20 million in tax fraud

After recovering more than N$20 million from 14 fishing companies who have been avoiding paying tax, the Namibia Revenue Agency (Namra) has decided to intensify investigations into the fishing sector.

Despite being one of the top sectors contributing to the Namibian economy over the years, Namra spokesperson Steven Ndorokaze says the fishing industry has been among the lowest contributors to the treasury.

“Over the years, the fishing industry has been among the lowest contributors to the national fiscus, with fees paid to directors and other members often going undeclared and therefore untaxed,” Ndorokaze said.

Ndorokaze says the ongoing investigations are focusing on the sale of fishing quotas by rights holders, amongst others.

“Additionally, the analysis is targeting beneficial ownership and transactions with related entities concerning vessel ownership and the export of products,” Ndorokaze said.

Between 1 May and 19 July, Namra issued administrative summons in accordance with applicable laws and raised tax assessments to determine the tax liability.

This was followed by the appointment of third-parties, being commercial banks and other parties to pay over funds in respect of the tax debt owed by the identified taxpayers.

“This action has resulted in the recovery of N$20 million from 14 fishing companies,” Ndorokaze said.

Namra is collaborating with other law enforcement agencies, particularly the Namibian Police, the Office of the Prosecutor General and the Financial Intelligence Centre, to carry out parallel financial investigations.

Ndorokaze says once financial investigations have been completed, the criminal process, where relevant, will be initiated, including the preservation and asset forfeiture proceedings, as provided for under the Prevention of Organised Crime Act of 2004.

“Namra remains committed to strengthening its enforcement capability to enhance compliance with the applicable tax laws and the targeted efforts to ensure compliance will be carried out in the various sectors of the economy. We therefore appeal to all taxpayers to ensure voluntary compliance with the tax laws,” Ndorokaze said