NRA holds four day sensitization workshop

The National Revenue Authority (NRA) on Monday, November 19, 2013 commenced a four day sensitization workshop at the Hotel Shangri-La along the Lumley Beach Road in Freetown.

Miss Matilda Zainab Kamara, Manager, Tax payers Policy and Services gave the opening remarks by calling on tax payers to cooperate fully with the NRA as without their cooperation they will not be able to achieve their objectives.

Mrs. Beatrice Fofannah, Manager Tax Payers Services and Policy introduced the Chairperson of the occasion, Mr. David Lansana, who she said she had known for many years as Assistant Commissioner for Large Tax Payers Services (LTPPS).

In his remarks, Mr. David Lansana said that the NRA has put in place bench marks for the filing of tax returns on time.

The Deputy Commissioner of Domestic Tax Department (DTD), Mr. Alfred Akibo-Betts, disclosed that each and every tax paid has a time identification number which helps them to know who has paid from those who have not filing their tax returns.

He added that the good thing about this system is that the people can see the money the NRA has been collecting as it will be made public, as well as understand where the Authority sometimes loses money.

He said he was happy to note that the major objective of the workshop was that it would look at strategies to improve compliance of medium taxpayers.

Mr. S.M Kamara, Assistant Commissioner, Small and Medium Tax Office (SMTO), explained that they have thought it wise to dialogue with small medium tax payers due to purpose, processes, procedures and changes in the laws.

He indicated that all those registered for the goods and services tax (GST) are medium tax adding that the GST has now increased from Le200 milliion to Le350 million.

He encouraged everybody to look at the laws as the essence of the workshop was for them to dialogue and share ideas.

He also stated that many times some of their officers go to business people and ask for their tax returns in order to increase compliance with the system.

He warned that if anybody deducted withholding taxes from their employees they should give such information to the NRA and that failure to do so such defaulters will be taken to court.

He maintained that anybody who is earning an income must pay tax.

Mr. Mustapha Fofanah, Manager, Returns Processing Unit, Small Medium Tax Office (SMTO) stated that the DTD is responsible for the administration of:

• Goods and Services Tax
• Income Tax (Corporate tax, Rent, P.A.Y.E., Payroll, withholding taxes, capital gains tax, etc,.)

GST is administered with the help of an automated system called VIPS Plus

Presently, except for LTO, the administration of Income Tax is being done manually using paper file and spread sheets.

An automated system has been designed for the administration of income Tax.

The system designed for Income Tax is called Domestic Taxes Information System (DTIS)

• DTIS is a database that holds data about tax payer’s business and Tax Transactions.
• DTIS is divided into three modules

The Tax payer services module handles:

• Registration verification, Tax payer’s details update, and Deregistration
• The returns processing handles the processing of returns, which involves
• Lodging of returns, keying the returns, and approval of returns payments.

The processing module handles the processing of payments and linking taxpayer’s payments to their respective liabilities in the system.

PROCEDURES

• Tax payers complete the returns form for each tax type that is applicable to them.
• Tax payers submit returns to our tax payers’ services staff for face vetting, collect returns are lodged in DTIS.
• DTIS produce a duplicated copy transaction slip which contains details of the returns transaction and the transaction number.
• Copy of the transaction slip is issued to the tax payers for each return submitted.
• Tax payer takes the transaction slip or slips to the bank and makes payments.
• Bank issues payment advice to the taxpayer. Tax payer takes bank payment advice to NRA Cashier. NRA Cashier prepares and issues receipts to tax payer. Tax payer makes correct payment on time. Tax payer makes payment less the due amount and a penalty and Interest will be calculated for the amount still owing.
• Taxpayers make no payment, then a penalty is issued.

Scenarios

• Taxpayer files return on time – no problem
• Taxpayer files return after the due dates – pays late filing fee
• Tax payer does not file at all-Non filing penalty.
• To avoid penalties and interests file returns and make complete payments on or before the due dates.

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