Large taxpayers have been called upon to comply with the government’s demand to certify their tax returns and financial statements for 2008. Certification has to be done through qualified tax accountants registered under the Institute of Certified Public Accountants of Rwanda (ICPAR).
Rwanda Revenue Authority (RRA) had previously set June 30, 2009, as the deadline for all large taxpayers to have presented certified tax returns and financial statements, but this was later extended to December 31, 2009 to allow the taxpayers have their books ready.
The move to certify tax returns follows a resolution from a meeting held earlier this year between RRA, representatives of the large taxpayers, the Private Sector Federation (PSF), ICPAR and the Ministry of Finance and Economic Planning.
It was agreed at the meeting that certified tax returns and financial statements will facilitate taxpayers avoid previous penalties incurred due to errors made during tax declarations and payments.
According to P. Célestin Bumbakare, the Commissioner for Domestic Taxes, statistics at RRA show that as of October 13, 2009, only four taxpayers out of the 270 large taxpayers had so far submitted their certified tax returns and financial statements for the fiscal year 2008.
On the other hand, RRA recently approved a list of about 100 tax consultants to supplement the existing list of ICPAR.
In a meeting between RRA and tax consultants, the Deputy Commissioner for Large Taxpayers, Ben Kagarama, said that the period given was more than enough for taxpayers to have completed the certification process.
He emphasized that taxpayers are expected to submit certified tax returns and financial statements before the deadline of December 31, 2009.
The requirement for certification of financial statements is provided for by law No.16/2005 of 18/08/2005 on direct taxes which can be found on RRA’s website.