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E13M TAX FRAUD: OVER 10 COMPANIES FACE PROSECUTION

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MBABANE – The SRA might be lenient to voluntary compliant firms but this has not stopped the authority from cracking the whip on those who refuse to comply.


This could well be substantiated by the revelation to the effect that over 10 companies stand to be prosecuted for alleged Value Added Tax (VAT) fraud tax fraud, which include Value Added Tax (VAT).


Without providing much detail on the nature of VAT fraud committed by the companies in question, Swaziland Revenue Authority (SRA) Commissioner General (CG) Dumisani Masilela, informed captains of industry during a stakeholder meeting convened yesterday at the Royal Swazi Spa, that the amount involved in the alleged crimes was more than E13 million.


Safeguarding


“We are strongly safeguarding against any form of crime being committed through VAT,” emphasised Masilela.
VAT currently stands at 15 per cent both in Eswatini and South Africa. 


The CG continued to state that there was a potential for fraud in the collection of VAT, to the extent that it had been uncovered in South Africa that some companies were being formed primarily to claim VAT which is not due.
Daphne Mhlanga inquired as to how far the SRA was efficient in terms of adhering to the set timeframes, with regards to the processing of Tax Refunds by companies. She alleged that it had been almost a year they have been waiting for their refund but correspondence with regards to how far the claim had been processed was not forthcoming.


In response, the CG stated that as an authority, they were highly cognisant of the importance to adhere to deadlines since they also expect taxpayers to fully adherent at all times.


Unfortunate


He said it was unfortunate that such a period had lapsed before a tangible response could be provided, but suggested that there was a strong likelihood that they had requested certain information, which could not be provided by the firm, which had led to the delay.
Masilela promised that SRA officers would take the matter up to determine what could have happened.


Further, the CG outlined that in terms of the law, a VAT refund should be processed within 60 days failing which, the claiming entity was liable to claim interest from the SRA if the process has not been completed.
Therefore, he said it was in the best interest of the SRA to finalise all claims within the stipulated timeframe, to avoid losing out on revenue which would be much against their mandate to collect revenue for the State.

 

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: Emabandla
Should emabandla have also been disbanded?