TAX COMPLIANCE BIA PRESENTATION 10/11/2010

BURS Mandate Administer and enforce the revenue laws; Income Tax Act Capital Transfer Tax VAT Act Customs & Excise Duty Act

TAX COMPLIANCE

What is Tax Compliance Simple definition Is the degree to which taxpayer comply with the tax law and administration It is measured in terms of the “tax gap” It can also be defined as seeking to pay the right amount of tax (not more) in the right place and time as compared to tax avoidance. The aim being to have a 100% compliance with Revenue laws

Tax Compliance Tax compliance include; Voluntary compliance Compliance by enforcement Voluntary compliance is adherence to the tax legislation without the use of forced measure within the laws Forced compliance is whereby taxpayers comply after some enforcement measure of the law has been implied

Legal Framework Tax revenue laws assumes voluntary compliance; Sec 65 of the Income Tax Act; Every person shall furnish a return…. Sec. 26 of the VAT Act; Every registered person shall furnish a return… According to the Act a person has to declare his or her income or VAT to the CG VAT, company / Corporate tax is based on a self assessment system which encourages voluntary compliance

Legal Framework Enforcement The law stipulates enforcement measures to deal with taxpayers who do not voluntary adhere to the laws Sending reminders Penalties ;Sec. 117 & 118 IT and Sec. 33 Interests; Sec. 97&101 IT and VAT Act, Fifth Schedule. Garnishee order, (ITC 9); VAT sec.40, IT sec.109

Legal Framework Cont… Seizures; Sec. 37 VAT Closure of Business Premises (Sec 63 VAT) Levy of distress; Sec38, VAT Summons (14 days) A writ of executions; sec. 34 VAT and sec.103 IT Criminal Proceedings

Burs Initiatives Burs has created an enabling environment for tax payment which reduces the burden of tax compliance by the following tax administration activities; Sending of returns Sending of statements – debt Payments Plans Taxpayer segmentation-Large taxpayer unit Burs accessibility Opening of offices Service Centres Computer Auditing

Burs Initiatives To encourage voluntary compliance Taxpayer education and awareness To enforce compliance Surveys Inspections Block management

TAXPAYERS RIGHTS Right to object and appeal an assessment Appeal can be made to: * Board of adjudicators * High Court Right to secrecy Right to appeal against seizures and detentions

WHERE YOU CAN FIND BURS ADDRESS & LOCATION TELEPHONE NUMBERS Gaborone P/Bag 0013 Francistown P/Bag 38 Lobatse PO Box 263 Jwaneng PO Box 5 S/Phikwe PO Box 129 Mahalapye PO Box 240 Palapye PO Box 97 Maun PO Box 219 Ghanzi P/Bag 0018 TELEPHONE NUMBERS 363 8000/363 9000 2413635 5330566 5880695 2613699 4710486 4920388 6861321 6596463

Collecting Taxes for Botswana's Development THANK YOU Collecting Taxes for Botswana's Development www.burs.org.bw