IRC: Firms failed to pay taxes

By HELEN TARAWA
THE Internal Revenue Commission says a number of businesses in the country fail to lodge their returns and pay income tax as required.
Commissioner General Betty Palaso told The National that a recent audit revealed that businesses were registered but failed to comply with the requirements of lodging returns and paying income tax.
Responding to calls by trade unions to make public the companies paying tax and those which do not, Palaso said information at hand indicated that the taxpayer population registered with IRC was not indicative of the number of businesses in operation nationwide.
She said the IRC had collaborated with commercial banks to ensure non-registered businesses registered with IRC.
“This is done through the provision of a taxpayer identification number (TIN) when opening a bank account,” she said.
“Where the business does not have a TIN, they are referred to IRC to obtain a TIN.
“IRC is vigorously targeting these taxpayers to bring their tax affairs up to date including issuing garnishee notices to taxpayers who have lodged income tax returns but have failed in paying their income tax liabilities.
“The action for demanding lodgement of income tax returns and payment is stipulated under the Income Tax Act and GST Act.”
Palaso, while unable to give details of the number of companies failing to comply, said there were tax laws with strict penalties which prevented the IRC from divulging taxpayer information to the public.