LRA targets top earners 1 Aug 2013 By Ntsebeng Motsoeli feature photo MASERU — The Lesotho Revenue Authority (LRA) says it will soon conduct lifestyle audits on high income earners and high profile individuals as it intensifies its clampdown on tax evaders. LRA commissioner of enforcement, Advocate Realeboha Mathaba, told a media briefing on Monday that there were some irregularities between most people’s lifestyles and the returns they submit to the authority. “Audits that have so far been conducted in this area have indeed confirmed huge discrepancies between the lifestyle which some taxpayers are leading and the returns that they are submitting to the authority – there is simply no correlation,” Mathaba said. “This group includes professionals whose compliance is not where it should be.” The tax authority said while some taxpayers were complying with their tax obligations there were other individuals who had opted not to comply. “This is not only unfair to complying taxpayers but it also promotes unfair competition in the case of businesses and undermines the integrity of our tax system,” Mathaba said. He said the failure to comply with one’s tax obligations hinders the government’s ability to provide for its citizens. Mathaba said the LRA is determined to promote a fair system that ensures everyone complies with their tax obligations. He said the authority has since introduced initiatives to maximise compliance such as accelerating implementation of segmentation of taxpayers to closely monitor taxpayers to ensure that they comply in their various sectors. The LRA will also conduct inspections aimed at checking taxpayers’ compliance with their tax obligations. “Our inspectors have already started visiting some businesses within Maseru City and we wish to take this opportunity to implore the businesses owners to cooperate with our officers and provide them with all the information that they need,” he said. The LRA will also intensify inspections at the border posts to ensure that importers make correct declarations and pay taxes and duties accordingly. Mathaba said “this is a necessary exercise both for tax and social protection purposes. Risky sectors have already been identified for targeted inspections”. The authority will also conduct audits on taxpayers who have consistently filed nil returns or are continually on a refund position. “We have since realised that self-assessment systems are subject to abuse as some businesses are continuously filing nil returns or are perpetually on a refund position,” he said. Sectors such as mining and manufacturing will also be targeted during the audit. Mathaba said the authority will take enforcement measures against those who resist the exercise. “While our tax system is based on voluntary cooperation and compliance, it does not mean that people should pay their taxes only when they want. It therefore becomes necessary on some occasions for us to take enforcement measures where taxpayers refuse to cooperate with us.” He said the LRA will also target local staff working for diplomatic missions and non-governmental organisations to ensure they pay their taxes. “It has been realised that the exemptions given to expatriate employees working for international organisations are misinterpreted to be covering even our locals. We are going to correct this,” he said.
Posted on: Thu, 01 Aug 2013 06:21:03 +0000
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