Audit firms, RRA to net tax evaders

Rwanda Revenue Authority (RRA) and different audit firms have join hands to fight tax evasion.

Thursday, May 08, 2008

Rwanda Revenue Authority (RRA) and different audit firms have join hands to fight tax evasion.

The move comes after RRA’s audit team discovered that auditors connive with tax payers to evade duties levied on them. They were also found not to be declaring imports as required and forging receipts, a practice that is making the Treasury lose billions in taxes.

Appearing on Contact FM’s ‘talk show dubbed ‘Cross Fire’ late in March, Mary Baine the Commissioner General of RRA said last year 64 per cent of the revenue collected was from audits. RRA collected Frw246 billion in 2007. This means, if tax payers were not audited, the Treasury would have lost at least Frw157.4 billion.

To plug these loopholes, Alfred Ndihokubwayo, from RRA audit department urged the auditors to always record business information that is accurate and from a right source.

Occasionally RRA officials have discover that the closing stock of many businesses does not correspond with the opening stock of the following financial year. Celestine P. Bumbakare, urged the tax payers to stop such malpractices and work hand in hand with RRA to achieve better results.

Stakeholders however complained that some RRA staff are rude and play delaying tactics inconveniencing tax payers. In replay Bumbakare said, "You should plan for the days of tax payment, pay on time and help us beat the deadline without anyone of us being bothered."

Most tax payers in the country prefer clearing taxes on last days, causing congestions at RRA tax clearance points. Private Sector Federation (PSF) urged RRA to intensify the tax education campaign targeting even villages.

Ends