08 Aug 2013 08:00
SWAKOPMUND, 08 AUG (NAMPA) The director of the Ministry of Finances Legal and Support Department, Nadine du Preez has called on women-owned businesses to pay Income Tax in order to avoid penalties.
Du Preez, who was speaking on Wednesday at the three-day Namibian Women's Summit underway in Swakopmund, said tax compliance is important as it signifies adherence to the rule of law and raises revenue to support Governments economic and social policies.
Tax compliance is important to avoid the high cost of dodging taxes through the imposition of penalties, she emphasised.
Tax compliance refers to the degree to which taxpayers comply with the tax rules of Namibia by declaring income, filing in a tax return, and paying the tax due in a timely manner.
She explained that failure to register income amongst others things doubles the amount of output tax by 20 per cent per annum, while the late submission of returns will cost the taxpayer N.dollars 100 for each day the return remains outstanding.
The Income Tax Act confers no discretionary powers to waive any outstanding tax and interest, she stated.
Du Preez encouraged women with businesses to pay taxes in support of gender equality and women empowerment.
The money collected through taxes will funds health facilities, public welfare programmes, public housing programmes, education, gender equality and the empowerment of women, the environment and climate, and peace and security, said Du Preez.
There are three tax systems in Namibia, which include direct taxes which are levied on the income and profits of individuals and companies commonly referred to as Income Tax; indirect taxes which refers to Value Added Tax on goods and services, Transfer Duties on the acquisition of property, Value Added Tax on the importation of goods and Stamp Duties; and trade taxes which are the Customs and Excise Duties.
The summit ends on Friday.