The National Revenue Authority (NRA) has announced plans to take tougher punitive actions against companies/businesses that have defaulted on their tax payments in a move to redeem unpaid taxes. The Director of Finance, Mr Abdulai Conteh, acting Commissioner-General in the absence of Madam Haja Kallah-Kamara who is attending the Commonwealth Association of Tax Administrators (CATA) conference in Malaysia said that tax indebtedness is a major challenge to revenue collection. He said while the NRA is encouraging taxpayers to meet their tax obligations voluntarily, it remains ready to enforce tax laws against defaulters including closure of businesses with tax arrears.
Mr Conteh said it is not the intention of the NRA to put people out of business, adding that businesses whose premises are in the process of being closed down are those whose arrears have accumulated overtime and have refused to settle their tax liabilities despite several reminders to clear outstanding debts. “As an Authority, we want to maximise revenue collection and at the same time be seen to have a human face which is why we are willing to negotiate with taxpayers to enable them meet outstanding liabilities if a substantial payment and a plan guaranteeing payment of remaining taxes due is made,” Mr Conteh stated. He however cautioned that the payment of PAYE and other withholding taxes are non-negotiable.
He explained that since withholding taxes are deducted at source of income, either from individuals in gainful employment (PAYE/Pay Roll), contractors and or landlords, their non-payment denotes a shameful theft against the nation. “In the case of PAYE tax for example, it is the responsibility of employers to deduct/ withhold pay-as-you-earn (PAYE) taxes from their employees’ wages/salaries and pay them to the NRA according to the prevailing rates on or before the 15th day of the following month. Employers are only expected to hold these monies in trust for the NRA until they are paid into the Consolidated Revenue Fund via various commercial banks. It is therefore unacceptable that some employers are failing to remit these monies to the NRA using laid down procedures”. Mr Conteh said failing to deduct PAYE or failing to pay employees’ PAYE deductions to the NRA is a serious crime and that the Commissioner-General, Madam Haja Kallah-Kamara is determined to tighten the noose on any business/company that has fallen foul and failed to meet such an important employer obligation.
“All those owing PAYE and other withholding taxes will not only have to pay such taxes in full, but also penalties and interest for late payment or more stringent actions will be taken against them. Such enforcement actions include but not limited to seizure of business and personal property, imposition of travel bans or prosecution for not paying taxes. The same also goes for companies who deduct contractor withholding taxes from their suppliers without remitting them to the NRA”.
While urging defaulters to settle their outstanding liabilities or risk being prosecuted in accordance with relevant tax laws, Mr Conteh noted that the NRA has in the past been forced to close several businesses over outstanding taxes after softer attempts proved futile. He said the Authority is ready to go a step further this year by publicly humiliating those who fail to respond in time to these warnings as it intends to release a ‘list of shame’ identifying companies that have failed to meet their tax obligations in a bid to compel them to comply with tax obligations and honour their debts.
Reminding the public of NRA’s sacred responsibility of collecting domestic revenues to support government’s developmental agenda, he said demands are placed on the government to provide social services such as quality health care, education, roads and security to citizens. To do this, he added, people must pay taxes. The NRA is expected to collect Le2.079 trillion this year; so far the Authority has collected over Le1.8 trillion and is racing against time to not only meet but exceed its revenue targets.
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