AMNESTY FOR BUSINESSES OWING TAX

EZULWINI - The Federation of Eswatini Business Community (FESBEC) and Eswatini Revenue Service (ERS) have signed a memorandum of understaing (MoU) towards ensuring tax compliance of the businesses locally.

ERS Commissioner General Brightwell Nkambule said the MoU would assist local businesses with tax debt they will pay at an understable condition. He said businesses would come forward before October 5, 2022 wouldhave their tax debts explained and a schedule of payment created. “Businesses owing tax would be subjected to pay the amount they owe but in different conditions and periods, depending on the debt,” he said. The commissioner emphasised that those that will come forward to declaire their tax debt will receive amensty  and a grace period to pay. Nkambule outlined that this would reduced cost for some businesses and increase monetary movement as their debt would have been decreased. FESBEC President Tum Dupont added that the MoU is a necessity to the business sector as tax compliance is one of the issues affecting business locally. He said many businesses have closed due to high tax debts and some directors enter into a state of shock upon dicovering how much they owe.

System

“Many directors have died after finding out how much they owe as tax and this is because they do not properly understand the system,” he said. The president urged businesses which were non-members of the organasation to also come forward as they were also inclusive to the partnership. The MoU’s intention is for the two enitites to jointly establish a strategic plan for ensuring ease of compliance to the country tax laws while also ensuring the sustenance of local businesses. They are also expected to identify risk and opportunities related to tax compliance for local businesses and to establish risk management plans that would ensure full tax compliance without the creation of trade bearers. The two entities are expected to jointly contribute to the review and alignment of any tax laws and regulations including standards from an informed base, which may include bechmarking with others with an intention to adopt best practises.

They are also expected to jointly dacilitate the establishement, implementation and maintenace of a sustainanble tax compliance manangement system with clear monitoring and evaluation. FESBEC is expected to establish a database of all active local businesses with clear details in terms of nature of business. The organisation is also expected to be a point of contact for all registered local businesses for ERS to ensure quick response on matters.

Capturing

FESBEC will setup both online and offline facility as well as a central cloud base accounting system for all local businesses, for adequate data capturing. ERS on the other end would develop and implement a focal capacity building programme for FESBEC and local businesses to ensure full understanding of the methodologies of ensuring tax compliance. ERS would also provide required assistance to FESBEC towards ensuring tax compliance and also link the businesses with government in terms of tax.

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