Govt to Make Tax Payments Simple for Large Payers

THE Ministry of Finance, through its Inland Revenue Department is establishing a new directorate to administer the tax affairs of large taxpayers with effect from 1 July, permanent secretary, Ericah Shafudah said this week.

She said the establishment of the Large Taxpayers Office (LTO) is part of a wider reform programme aimed at modernising tax administration in Namibia, which includes other initaitives such as the acquisition of new equipment and reforming the tax system.

“These reforms are aimed at significantly improving the Inland Revenue’s ability to effectively administer the tax laws,” Shafudah said.

The LTO is a major undertaking, which aims to fundamentally transform the way takes are administered in Namibia, the notice by Shafudah said. “The LTO will offer large taxpayers a broad range of new services with a view to simplify the process when filing and paying taxes,” she said.

Shafudah the creation of the government has created the LTO because the tax affairs of large taxpayers are more complex than those of other types of taxpayers and require better oversight to manage the compliance risks they present.

“Like other tax offices worldwide and specifically in Namibia, the LTO will be responsible for carrying out all tax administration functions for its assigned set of taxpayers such as taxpayer services, collection of tax returns and tax payments and audit. The LTO will provide large taxpayers with a broad range of services, including direct access to staff who are specifically assigned to meet their services needs,” she said.

Shafudar said when the finance ministry implements its new computer system, it anticipates that large taxpayers will file their tax returns electronically. “Until then, large taxpayers will continue to file and make their payments at their present location, but are also free to deal with the LTO.”

Government revenue is estimated to be N$52,5 billion in the 201415 financial year, which is an estimated 30,7% increase over 201314.

With planned expenditure exceeding projected revenue, the government is anticipating a budget deficit in 201415 of N$7,7 billion of 5,5% of GDP. This is compared to an estimated budget deficit of N$7,4 billion (6,4% of GDP) in the 2013,14 financial year.

Source : The Namibian