Tax evasion hurting the economy
Mmegi Editor | Tuesday August 2, 2016 15:16
This is attributed to inadequate capacity to undertake more enforcement to cover all areas of the country, as well as public ignorance of the importance of tax as explained by the commissioner general Ken Morris.
While shocking, this is not news. Some years back, it was reported that the country was losing billions of pula in importation of second hand vehicles where importers were said to deflate the value of the vehicles.
BURS is always in the news headlines trying hard to chase tax dodgers who manipulate loopholes in our laws, policies and structures to avoid paying tax. In many instances, the culprits are expatriates who come and set up companies for manufacturing or service provision, and find ways to avoid paying tax. What is even disturbing is that the same companies pay their Batswana employees peanuts, whilst their directors live expensive flamboyant lifestyles even boasting about Botswana’s ineffective laws. In some instances, our very own people who are either shareholders in the companies or benefit indirectly from their dirty deeds, aid tax evaders.
Some of these companies are awarded government tenders worth millions of pula but continue to beat the system and manipulate their books to trick the taxman. Could this mean that the taxman is only good at tracking the small fry on whom he imposes heavy penalties upon noticing some form of non-compliance, whilst the big fish walks scot-free. Perhaps the law should be tightened to make monitoring of the activities of all companies known to the tax authorities. One way is for the Public Procurement and Asset Disposal Board (PPADB) and BURS to work together and exchange information on all activities of the companies that do business in the country.
Just last week we carried a news story about a man who was robbed of a total cash of P100, 000 at his home in Chadibe. Although it not clear why such a huge amount of money was kept in the house, it is clear that the money was not going to be taxed. The case could be a tip of the iceberg looking at the amount of remittances estimated at P193 million in 2012, the activity, which we believe is also difficult to monitor fully.
It is high time businesses are required to do all financial transactions electronically, whilst heavy penalties are imposed on individuals who keep large amounts of money in their houses.
BURS needs to rise from the stupor and deliver. We need the revenue to build more roads, more hospitals and schools for this nation.
Today’s thought
“I like to pay taxes. With them, I buy civilization.”
- Oliver Wendell Holmes Jr.