More than a thousand farmers, both commercial and communal, have united under the banner of the Taxpayers Concern Group to call for reforms to the tax system.
The members form part of a group of farmers being investigated for alleged tax claim fraud by the Namibia Revenue Agency (Namra).
Namra is currently investigating a tax refund scam amounting to N$833 million, involving 1 168 taxpayers suspected of having fraudulently received income tax refunds.
To prove their innocence, Namra has demanded that farmers who received tax benefits for farming provide proof of the legitimacy of their tax returns.
In the meantime, Namra has issued letters of demand to various employers, instructing them to deduct money from employees’ salaries if they cannot substantiate the information.
In a letter addressed to Namra and seen by The Namibian, the group requested an audience with the agency’s chief executive, Sam Shivute.
The letter, signed by group chairperson Mumenga Kangumine, outlines a series of concerns and requests, including an appeal for an extension of the payment period from the current 36 months to 10 to 15 years.
This extension aims to alleviate the financial burden on farmers.
“The current situation has left many with no income as the demands from Namra exceed people’s net income.
For instance, a person earns N$12 000 net, yet Namra’s demand is N$18 000. People cannot breathe,” Kangumine says.
In addition, farmers are seeking the option to appoint tax experts during audits to ensure the adequate addressing of complex technical matters.
The discussion will encompass a proposed introduction of field audits by Namra to comprehensively understand farming operations.
The group also seeks clarity on Namra’s responsibility concerning the fraudulently and unlawfully refunded amounts.
The Taxpayers Concern Group is also advocating a review of specific tax directives and policies.
Meanwhile, labour, tax, and criminal lawyer Uhonga Tjiurutue has urged individuals who have claimed tax returns under the guise of engaging in farming activities while they are not farmers, to accept liability and settle.
“This option is favourable in that individuals can simply apply for amnesty via their Integrated Tax Administration System portal and only pay the principal debt, as opposed to the whole amount, which includes penalties and interest,” he says.
A second option is for individuals to write an objection, demonstrating their farmer status and providing duplicate copies of their receipts, Tjiurutue says.
By drafting an objection, individuals can challenge the assessed amount through an audit, he says.
“The disadvantage is that the ‘pay now, argue later’ rule will be applied,” he says.
Tjiurutue says the written objection must be submitted within 90 days of assessment in writing, along with all relevant documents.
He says there is a lack of awareness of the requirement to keep duplicate copies for a five-year period, which prevents the submission of the requested duplicates to Namra.
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