Instilling a culture of paying taxes vital

The Commissioner General of Rwanda Revenue Authority, while on a visit to Kirehe district on Wednesday, revealed a scam where traders evade taxes by falsifying invoices and trading Tax Identification Numbers (TIN).

Sunday, January 15, 2012

The Commissioner General of Rwanda Revenue Authority, while on a visit to Kirehe district on Wednesday, revealed a scam where traders evade taxes by falsifying invoices and trading Tax Identification Numbers (TIN).

Investigators discovered that traders with registered small businesses were recording an annual turnover of hundreds of millions of francs.

Obviously, such small scale traders sold their TIN numbers to large scale businesspeople, whose sole intention was to hide their turnover with a view of evading paying taxes.  Through this kind of fraud, the tax body lost millions because of such unscrupulous traders.

Where tax crimes have been committed, it is important that the prosecution takes over. However, small business owners are still motivated by the short term benefits and are unaware of the consequences of handing over their TIN and the legal penalties they might face.

Ultimately, a culture of paying taxes should be instilled in citizens. Attitudes towards paying taxes greatly impacts how people respond to their duties and trading obligations. A positive attitude is vital in ensuring that traders and all citizens with taxpaying obligations comply.