TAX COMPLIANCE
BIA PRESENTATION
10/11/2010
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BURS Mandate
• Administer and enforce the revenue laws;
– Income Tax Act
– Capital Transfer Tax
– VAT Act
– Customs & Excise Duty Act
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TAX COMPLIANCE
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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
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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
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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
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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
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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
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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
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Burs Initiatives
• To encourage voluntary compliance
– Taxpayer education and awareness
• To enforce compliance
– Surveys
– Inspections
– Block management
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TAXPAYERS RIGHTS
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•
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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
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WHERE YOU CAN FIND BURS
ADDRESS & LOCATION
• 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
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THANK YOU
Collecting Taxes for Botswana's
Development
www.burs.org.bw
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