Finance Minister Kenneth Matambo read the Banking Amendment Bill for the second time in Parliament this week, taking a step further in dissolving secrecy provisions in the Banking Act. This will allow disclosure of confidential information by banks to the Botswana Unified Revenue Services (BURS) without requiring a court order."This will facilitate disclosure of banking information to be used by BURS in its function to counteract tax fraud and other forms of tax evasion as well as exchange information with countries with which Botswana has concluded double taxation avoidance agreements, whenever required to do so by the treaty party," said Matambo.From the second reading, the bill will be debated by committee members followed by the third reading before the President signs it into law.
In an effort to widen the tax base and improve state revenues, BURS last year placed a requirement on individuals earning P3,000 per month and above to register for a Tax Identification Number (TIN) for tax returns submissions, under a new regulation designed to enhance accountability for taxation.All tax transactions involving an individual, including from sources other than employment, will be filed under the same TIN account.While the Banking Act amendment will significantly boost BURS capacity to bust local tax evaders, internationally, the changes will also affect foreign investors who either hide assets in Botswana or avoid to pay the right amount of tax in the right jurisdiction.
