The National Revenue Authority (NRA) has written to all commercial banks stopping them from releasing funds from accounts of defaulting parastatals. The banks have also been instructed to remove money owed to NRA for outstanding Pay-As-You-Earn (PAYE) and Withholding Taxes (WHT). It follows moves by the Authority to clamp down on tax evaders by collecting all from parastatals.
In December 2017, the Authority vowed to crack down on parastatals who have not paid taxes. The parastatals complained of not receiving their subventions on time. Parastatals also complain about the reliability of subventions saying the payments from the government are often not paid in full.
Parastatals say they use subvention funds to operate and cover expenses.
“As a tax Authority we have to do our jobs. We are not responsible to spend these monies. We only collect. So, if we are collecting, you have to go and collect,” said Commissioner Ibrahim Sorie Kamara of the Domestic Tax Department (DTD). “We have written to all commercial banks, as a third party recovery method, stopping them from taking monies from their accounts.”
Challenges with domestic revenue collection have been cited as partly responsible for government’s inability to meet set revenue targets. For instance, the government had to revise its revenue targets for 2017 due to its inability to meet the first half year target.
The NRA are relying on the Finance and Income Tax laws that gives them unfettered access to taxpayers’ bank accounts to improve revenue collection.
Commissioner Kamara said the third party recovery is part of the robust measures the government is taking to tackle rampant tax evasion. He revealed over Le115 billion has been identified by their auditors as monies owed from PAYE and WHT in tax revenues. NRA auditors continue to calculate tax payables and will submit final figures soon.
“As I am speaking now, I have received several calls from banks to get clarification. We have started seeing effects because we have a company at the Port that owed us Le1.8 billion, just with that order they have transferred into our account at the Bank of Sierra Leone (BSL),” he bluffed.
They met yesterday, 18 April 2018, at State House to address the tax liability issue with MDAs and parastatals, going forward.
He warned if any bank refuses to comply, they will write BSL to seize their license or they take them to court for impeding tax administration, which is illegal.
According to the Income Tax Act 2000, Section 155, says… “A person who in any manner impedes or attempts to impede the administration of this Act commits an offence and, in addition to any penalty otherwise provided, shall be liable on conviction to a fine not exceeding the amount specified in paragraph 12 of the Ninth Schedule or to a term of imprisonment not exceeding one year, or both.”
ZJ/18/4/18
By Zainab Iyamide Joaque
Thursday April 19, 2018.
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