The Namibia Revenue Agency (NamRA) has announced the establishment of an investigative team as of 1 July 2023, to investigate the validity of zero tax returns submitted by companies.
The action is being taken in response to growing concerns regarding the abuse of zero tax returns as a means for companies to evade tax payments.
According to the revenue agency, 172,021 zero tax returns have been submitted by 56,881 taxpayers or businesses in respect of Income Tax. Additionally, 16,001 taxpayers have tendered 138,245 zero tax returns for Value Added Tax (VAT) from 2017 to date.
“NamRA acknowledges that there are valid reasons for submitting zero tax returns. However, we have detected that certain businesses evade tax by declaring zero tax returns, despite continuing to trade and making profits, in some instances securing multi-million-dollar tenders from the Government and Public Enterprises,” NamRA Commissioner Sam Shivute.
He warned that companies who do not revise their returns, make payments where applicable, or make payment arrangements by 30 June 2023, will face litigation.
“In the event that no revision is made by the taxpayer by end of next month and an audit establishes that there are amounts owing in respect of the various taxes, NamRA wil then invoke the applicable recovery framework, which amongst others include the appointment of third-party agents and litigation. NamRA is committed to enhancing compliance with the Namibian tax, customs and excise laws as guided by its internal processes,” Shivute said.
The move comes as the agency seeks to recoup N$72.92 billion debt in taxes after collecting N$57 billion in taxes for the 2022 financial year, surpassing its target of N$53 billion.
