The deadline for large tax payers to certify  tax returns for the fiscal year 2008 has been extended to December. 2009. Rwanda Revenue Authority (RRA) had previously set end of June as the deadline for all large taxpayers to have presented certified financial statements.

This means that uncertified copies must be replaced by the end of year.

Bumbakare Celestin, the Commissioner for Domestic Taxes Department at RRA said that this will facilitate the work of auditors and encourage professionalism within the business community. 

"Providing certified copies will help to avoid disputes between the RRA and taxpayers,” he said, pointing out that the exercise will also help to minimise errors in the tax payer’s books of account. 

"Although we do not have the final list published and approved, it is vital for taxpayers to prepare their books of accounts, such that when the list is published the audit firms can verify and certify them to meet the required standards,” Bumbakare said in an interview.

However Fred Mujuni, Accountant General of the Institute of Certified Public Accountants of Rwanda (ICPAR), the body charged with carrying out the exercise said that they are in the process of training staff that will carryout auditing.

"The list will soon be released of the group audit firms to carryout the exercise,” he explained.

Mujuni also noted that the certified copies of financial statements will reduce disputes between RRA and taxpayers, leading to appeals.
"Audited financial statements are more reliable and credible,” he said. 

The move follows a resolution from a meeting held earlier this year between RRA, representatives of the large taxpayers, Private Sector Federation (PSF) and ICPAR.

It was agreed at the meeting that certified financial statements will facilitate taxpayers to avoid penalties incurred due to errors made during tax declarations and payment.

The June 30 deadline also applies to Small and Medium taxpayers for filing tax returns though they are not required to provide certified statements.

Failure to meet the deadline comes with a penalty fee of Rwf500,000 for large tax payers, Rwf300, 000 for medium tax payers and Rwf100, 000 for small enterprises, in addition to 0.5 percent of net payment per month.

The requirement for certification of financial statements is provided for by the law No.16/2005 of 18/08/2005 on direct taxes.

The practice of submitting profit tax returns based on and accompanied by audited financial statements is an international norm that has been embraced by all member states of East African Community (EAC).

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