Rwanda Revenue Authority (RRA) has ordered medium taxpayers to have their financial statement certified by professional accountants from the Institute of Certified Public Accountants (ICPA) as it moves to ensure more compliance.
This was noted by the Deputy Commissioner in charge of Domestic Taxes, Ben Kagarama, on Tuesday at Sports View Hotel while officially announcing the changes to all business operators whose annual total turnover is Rwf400m.
The tax body says that the rule, which was adopted by large taxpayers, also aims at phasing out traditional methods of conducting business to promote professional businesses in the country.
“We want local business community to stage themselves in the business arena worldwide because Rwanda is moving in an openness of business competition,” he said.
However, taxpayers expressed worries over the limited number of professional accountants. A list of 21 professional accountants and 120 tax consultants. It is expected that about 500 taxpayers will certify their financial statement this year.
“Work involved in tax auditing is complex, RRA will only audit taxpayers that are suspected to have risks,” Kagarama emphasised.
Regarding prices charged by professional accountants, the Deputy Commissioner said government has no control over their intellectual capacity.
Ntukabumwe Theobold, Head of the Accounts Department in Bakri International Energy Co Rwanda said the initiative builds trust and has been like an assurance to their shareholders in Saudi Arabia.
Bihira Gilbert, General Manager of Horizon Express said that switching to a new system is not always easy but the system will not only help Government through RRA but also taxpayers because the old way involved a lot of risks and wastage of time and money.
“It’s good to know whether your business is making profits or loss in early stages because it will help you take other decisions,” he said.