Rwanda Revenue Authority (RRA) has waived Rwf6.6 billion in penalties for 31,500 de-registered tax accounts. Jean-Paulin Uwitonze, Assistant Commissioner for Taxpayer Services and Communications at RRA said the decision was made after a number of taxpayers' requests to de-register their Tax Identification Numbers (TINs). The requests were based on the fact that they were charged penalties by the tax system yet they have not operated any business activity from the time they registered their businesses. “TINs that have never imported or exported, locally purchased or sold any goods and services shall be de-registered and be discharged of all penalties imposed by the tax system as they have never done any income-generating activity to pay taxes,’’ RRA officials revealed following a thorough analysis of the requests. Uwitonze said that the analysis was carried out during a countrywide tour by RRA senior officials. The waived penalties also followed tax reforms that led to reduction of different taxes. “ Many taxpayers wrote to us and others came to our office saying they never used Tax Identification Numbers yet they were charged penalties. That is why after analysis, the tax accounts were de-registered and waived penalties since they never carried out an income generating activity, ’’ he said. According to the law, taxpayers who do not declare taxes pay fines equivalent to Rwf100, 000 which keep increasing depending on the number of periods they spent without declaration. According to RRA analysis, 54,000 declaration periods were never declared leading to Rwf6.6 billion penalties. Technology was used to identify tax accounts to be de-registered and discharged of penalties by assessing if they exported or imported both goods and services as well as if they purchased or retailed any goods. “ We have recorded 32,500 tax accounts which we have already de-registered. The owners have received messages informing them that penalties have been waived, ” Uwitonze added. Any taxpayer who has a similar case but has not received a text message regarding their TIN closure is advised to visit RRA nearest office to get support, call toll-free number 3004 or send direct messages on RRA social media platforms. Uwitonze emphasized that Tax Identification Numbers (TINs) with de-registered central tax accounts could still be used on decentralised taxes such as on immobile property. He urged taxpayers who still owe tax arrears to RRA to pay them given that they are facilitated to pay in installments. He also reminded taxpayers that the declaration and trade licence tax period is January 31, 2024. “ Those with immobile properties including houses, plots of land, arable land with over two hectares should know that declaration and paying taxes will end on February 29, 2024.”
