On October 6, Police in Rubavu District intercepted a vehicle that was loaded with assorted smuggled goods. The vehicle, intercepted in Gisenyi sector of Nengo cell in Urubyiruko village, was mainly loaded with liquors, bales of clothes and powdered milk, among others. The goods had been sneaked into the country through a porous border from the Democratic Republic of Congo. According to the Commanding Officer of Revenue Protection Unit (RPU), Chief Supt. Alphonse Busingye, the goods that were seized include liquors, energy drinks, second-hand clothes, and powdered milk and food spices. “In the first quarter of the 2018/2019 fiscal year alone we recovered over Rwf354 million in taxes. This involve taxes that otherwise would have been evaded, and penalties,” Businge said. He added that: “In partnership with RRA, we conduct investigations through which we also unearth tax evaders who undervalue their imported goods and those who manipulate the EBM machine.” He emphasised that “paying taxes is an obligation” contrary to which “you face heavy penalties as the law stipulates.” Under article 199 of the East African Community Management Act, which is also applied in Rwanda, any driver caught in such fraudulent means is slapped with a fine of $5, 000 while the vehicle and the goods are auctioned. “Some traders falsify books of accounts and receipts; they use fraudulent means to claim VAT, other traders don’t issue receipts electronically generated by EBM, which is against the law. These are some of the things we deal with,” said Businge. He appealed to the general public to demand EBM receipts while purchasing goods. “Every time you buy something you have paid your tax, but if you don’t collect your receipt the seller will embezzle your taxes.” In November 2016, RPU unearthed a ring of three men running ghost companies through which they attempted to defraud RRA of about Rwf1 billion in VAT refund. At least 25 holders of EBM were arrested in the same year for using fraudulent means to evade taxes and to defraud the tax body through VAT refunds. At the time, RPU and RRA also identified about 700 other people, who were working with the holders of EBMs in fraud. They evaded a combined Rwf6.7 billion. Two other businessmen were also arrested in December 2015 for manipulating the EBM and evading taxes amounting to Rwf70 million. editorial@newtimes.co.rw
