Gold: Brent Crude Oil: Ministries deprive ERS E179.8m in VAT
MBABANE – Government has been deprived of receiving revenue in the form of value added tax (VAT) by some of its ministries and department.
It was deprived of over E179.8 million. According to the financial audit report for 2022/23, the government ministries owed these taxes dating back to 2014.
According to Auditor General (AG) Timothy Matsebula public entities are required by the Income Tax Order of 1975 as amended to remit taxes accordingly
He noted that records from the Eswatini Revenue Service (ERS) revealed that the Royal Eswatini Police Service (REPS) had a Value Added Tax (VAT) debt worth E7 253 044.16 relating to tax periods dating back to July 2016 and remained unpaid to date.
OUTSTANDING
According to the AG’s report, records from ERS revealed that the Ministry of Natural Resources and Energy had a VAT debt amounting E1 816 348.06 relating to tax periods dating back to June 2012, which were still outstanding and not disclosed in the government’s Consolidated Financial Statements for the year ended March 31, 2023.
“I am concerned that the Government was deprived of its revenue by the ministry’s failure to settle its VAT debt which was in contravention of the country’s tax laws and regulations,” said the AG.
RELATING
Records from the ERS revealed that the Ministry of Agriculture had a Value Added Tax (VAT) debt worth E92 604.84 relating to tax periods dating back from December 2017, which was still outstanding and not disclosed in the financial statement for the year ended March 31, 2023.
ERS revealed that the Ministry of Economic Planning and Development had VAT debt worth E6 219 307.07 relating to tax periods dating back to June 2015.
Fire and Emergency Services Department owed ERS VAT worth E1 087 407.05 as at March 31, 2023, relating to tax periods dating back to October 2013.
The Value Added Taxes were not remitted to Eswatini Revenue Service by the department, and the VAT debt was not disclosed in the financial statements.
Records from ERS further revealed that the Ministry of Education and Training had VAT debt worth E1 676 717.96 relating to tax periods dating back to November 2015, as at March 31, 2015.
These tax debts were not disclosed in the financial statements, ended March 31, 2023.
SETTLE
Matsebula said he advised the controlling officer that the ministry should settle the VAT debt and PAYE tax debt with the Eswatini Revenue Service and provide proof of settlement.
In response, the controlling officer acknowledged the AG’s observations, and stated that the ministry was in consultation with Eswatini Revenue Service with the view that the above matter is brought to finality.
The AG further indicated that records of ERS depicted that the Ministry of Labour and Social Security had a VAT debt worth E12 627.41 relating to tax periods dating back to June 2015, and had remained unpaid to date.
Moreover, the debt was not disclosed in the consolidated financial statements for the year ended March 31, 2023.
Ministry of Information, Communication and Technology (ICT) had VAT debt worth E159 559 629.11 as at March 31, 2023, relating to tax periods dating back from November 2015.
PREVIOUS
It was worth noting that the debt had escalated as it was E111 137 101 in the previous financial year (March 31, 2022).
The AG further stated that records from ERS revealed that the Elections and Boundaries Commission (EBC) had a VAT debt worth E2 136 589.52 relating to tax periods dating back to March 2013, and remains unpaid to date.
ERS revealed that the Ministry of Health had VAT debt worth E10 984.04 relating to tax periods dating back to July 2018, and remain unpaid to date.
It was further revealed that His Majesty’s Correctional Services (HMCS) had a VAT debt worth E9 030.59 relating to tax periods dating back from September 2014.
“I am concerned that the government was deprived of its revenue by the ministry’s failure to settle its VAT debt which was in contravention of the country’s tax laws and regulations,” said the AG.