The Namibia Revenue Agency (NamRA) has recovered N$20 million from 14 fishing companies between 1 May and 19 July 2024 through administrative summons and the involvement of third parties, including commercial banks, to address outstanding tax liabilities.
This comes as NamRA is intensifying its efforts to combat deliberate tax evasion within the fishing industry.
“Between 1 May and 19 July 2024, NamRA issued an administrative summons in accordance with the applicable laws and raised tax assessments to determine the tax liability. This was followed by the appointment of third parties, 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,” said NamRA Chief Strategic Communications and Support Engagements, Yarukeekuro Ndorokaze.
He added that targeted actions have been taken to halt revenue leakage in this sector and to ensure that offenders are held accountable.
“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. The ongoing investigations are focusing on the sale of fishing quotas by rights holders, amongst others,” he said.
Additionally, he noted that the analysis is targeting beneficial ownership and transactions with related entities concerning vessel ownership and the export of products.
NamRA is collaborating with other law enforcement agencies particularly, the Namibian Police (NAMPOL), the Office of the Prosecutor General (OPG) and the Financial Intelligence Centre (FIC), to carry out parallel financial investigations.
“Once the financial investigations are 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, 2004 (Act No. 29 of 2004),” Ndorokaze said.
He said 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.
This comesa as Sam Shivute, the national tax collector’s Commissioner and CEO, has accused companies in the fishing sector as well as other multinationals – top foreign currency earners – of using a number of scams to avoid paying the correct amount of taxes to the government.
