Non Compliance

What is non-compliance?

Non-compliance is the failure or refusal to act in accordance with a law, regulation, or terms of a contract. In this regard, it is the failure or refusal to comply with the tax laws of Namibia.

Non-compliance with tax laws includes a range of activities aimed at disregarding the Namibian Tax laws. This includes Tax avoidance, which is tax reduction by legal means and Tax evasion which is the illegal non-payment of tax.

Penalties: Persons/Companies

Consequences of non-compliance

To the Country

• non-payment of tax reduces state revenues which in turn affects capital developmental projects; and
• non-payment of tax affects the government’s ability to provide social welfare services aimed at eliminating poverty.

To the taxpayer

• non-compliance leads to a delay in the issuance of tax directives as well as Good Standing Certificates on time; and
• non-compliance could lead to the attachment of private assets such as vehicles, machinery, and property by the government.

Penalties: Companies

Benefits of compliance

To the country

• Will enable our government to maintain expenditure on social safety net and to continue investing in the country’s much needed infrastructure without incurring unsustainable levels of debt which the future generation will bear; and
• Will enable the country to achieve strong and sustainable economic growth

To the taxpayer

• A taxpayer will not struggle to get any certificate of good standing or directives relating to pension and provident funds; and
• Satisfaction of having contributed to the nation building and attainment of prosperity.