Namibia acts on tax dodging companies

Tax-dodging companies in Namibia will find it difficult now that the inland revenue authority would require a valid certificate of good standing to accompany invoices before government can pay.

This new directive targeting companies that get government tenders was announced Tuesday by the finance ministry.

A certificate of good standing is given to tax compliant companies or people who get most of their jobs from the government.

In a circular seen by Xinhua Wednesday, and sent to all accounting officers, the inland revenue commissioner, Justus Mwafongwe, said he has observed that most companies that get tenders submit certificates of good standing but once they are paid, they do not pay tax.

To curb this behavior and promote tax compliance, Mwafongwe said, he had issued the directive requesting all accounting officers to demand that any invoice issued for payment should be accompanied by a valid certificate of good standing.

"If a contractor or service provider does not provide a valid certificate of good standing at the time of claiming payment for work done or service rendered for your institution, such payment should not be made," the circular said.

Mwafongwe further said any company or service provider who fails to submit such a certificate should be referred to the inland revenue department so that they can get a letter that shows how much they owe government.

Source : XINHUA