Namra runs after 15-year-old tax debt

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There are Namibian $ 12 billion in taxes owed to the Namibian government by taxpayers, and some date back to around 2006, the Namibia Revenue Agency (Namra) said.

However, N $ 12 billion is only the principal amount, which excludes N $ 8 billion in accrued interest and N $ 36 billion in penalties.

In short, the government owes N $ 56 billion to individuals, businesses and government institutions.

The principal amount cannot be amortized, however, the tax administration can amortize 75% of the accrued interest, provided that the arrears file their taxes. They have until January 31, 2022 to do so.

The revenue agency’s national tax official, Idi Itope, urged those who owe taxes to voluntarily settle their debts or face penalties, though he could not say what the penalties would be, nor when the tax authorities would attack those who do not respect the rules. .

Itope was speaking during a media engagement on Tuesday.

“The cost of compliance is lower than the cost of non-compliance. If you don’t comply, you risk your pension fund and future bonuses. It’s cheaper to pay what’s owed and comply, ”Itope added.

Namibia currently has a total of 887,500 registered taxpayers, with a 43% non-compliance rate. In terms of taxpayer accounts, the bulk comes from income tax with 768,369 people registered, or 86%. Next come VAT and imports with 67,267 registrations or 8%, employers with 17,631 or 2% and other taxes are at 34,301 or 4%.

Itope explained that what constitutes “other” would be royalties, transfer duties, stamp duties, absence of residence, etc.

Namra has been around for about four months and has so far raised N $ 23 billion, out of a total revenue target of N $ 48.8 billion for fiscal year 2021/2.

Itope added that the revenue agency was working on ways to tax the informal economy, which he said is a major contributor to the country’s gross domestic product.

Namra’s commissioner Sem Shivute, speaking on the same platform, said the agency does not allow corruption, which is evident in its achievements over the past four months.

He said the idea was to transform the agency into a world-class company passionate about its work. The commissioner added that the agency’s achievements are the result of the people who work there, as well as the leadership.

“We want to be the best at what we do and we are committed to serving with passion. Our work must have an impact and a difference in the life of every Namibian, ”said Shivute.

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