Tax Authority runs out of tax forms, authorises taxpayers to use photocopies – Mozambique

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Tax Authority runs out of tax forms, authorises taxpayers to use photocopies – Mozambique

8:38 CAT | 20 Oct 2016

Steven Le Vourc'h / Saint-Louis Studio (File photo) / Minister of Economy and Finance of Mozambique Adriano Maleiane

Some Mozambican companies are finding it difficult to pay Value Added Tax (VAT), because tax offices across the country have run out of VAT forms.

The shortage of forms dates from September. Both the confederation of Mozambican Business Associations (CTA), and the Mozambique Tax Authority (AT) confirmed to the independent television station STV, that the forms were running out.

The CTA pointed out that this situation makes it difficult to pay taxes on time, and when taxes are paid late the companies concerned can be fined.

CTA Deputy Chairperson Prakash Prahlad urged the Tax Authority to show some good sense, since the lack of forms is not the fault of the companies, who were taken by surprise and are now worried that they might face heavy fines. He added that the problem could be overcome through electronic forms of tax payment, a reform long considered by never implemented.

AT spokesperson Haydn David told STV that the company which produces the forms has cut off supplies because the AT has not paid its recent invoices. He thus admitted that the institution which collects the country’s taxes has not paid for an essential service – and as a result that service has been cut off.

David blamed the non-payment on “internal red tape”. But instead of promptly paying its debt to the supplier, the AT has entered into “negotiations” with the company in question, he said, over payment and the resumption of the supply of forms.

“There really is a shortage of some tax payment forms”, admitted David. “The AT delayed in paying the company that prints the forms, and so it decided to cut off the service. But we are working to regularise the situation within a few days”.

He added that, while the situation is being “regularised”, taxpayers are authorised to use photocopies of the forms (this is a significant shift in attitude, since state institutions normally do not allow the use of photocopies),

David also insisted that the shortage of forms will not compromise the AT’s tax collection targets.

Source: AIM