Report On Value Added Tax (Remission Of Additional Tax and Penalties) (voluntary Disclosure), Regulations, 2018

REPORT ON VALUE ADDED TAX (REMISSION OF ADDITIONAL TAX AND PENAL TIES ) (VOLUNTARY DISCLOSURE ) REGULATIONS, 2018
·PRESENTED ·

THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER
National Assembly)’ P. 0. Box 190
Maseru 100
Phone: +266-22323035 Fax: + 266 22310434


INTRODUCTION
On Tuesday 24th April, 2018, the Hon. Minister for Finance tabled Value Added
Tax (Remission of Additional Tax and Penalties) (Voluntary Disclosure)
Regulations 2018 in the House. The Regulations were referred to the Portfolio
Committee on the Economic and Development Cluster for consideration in
terms of Standing Order No.100 (3). The Committee invited the Ministry and
Lesotho Revenue Authority (LRA) to a briefing session in accordance with
Standing Order No. 101 (2).
The Committee, therefore, presents this report to the House for consideration .

  1. MINISTERIAL BRIEF
    The Ministry indicated that the principle underlying this law is to encourage
    taxpayers to voluntarily comply with their tax obligations without fear of
    punishment for the past tax transgressions. In return the taxpayer will get
    amnesty on additional tax and penalties, non-pursuance of prosecution,
    opportunity to regularize tax affairs and start on a clean slate with the tax
    Authority.
    They further clarified that once the law becomes operational, taxpayers who
    have committed tax irregularities can disclose such information without fear of
    being penalized, and it is also anticipated that this legislation will bring more
    revenue into Government coffers which will be used for developmental needs
    for Basotho.
  2. Committee’s observations.
    The Committee observed that there is a need for adequate dissemination of
    information to taxpayers.
  3. Committee’s Decision
    The Committee allowed the Regulations.
  4. Recommendations
    The Committee recommends the approval of these Regulations and the
    adoption of this report by the House .
    Members of the Committee
  5. Hon. S. T. Rapapa (chairperson)
  6. Hon. L. S. Litsoane
  7. Hon. L. R. Mahase
  8. Hon. S .D .Mangobe
  9. Hon. T. J. Sophonea
  10. Hon. M. J. Maime
  11. Hon. M. P. Maqelepo
  12. Hon. L. C. Hlomelang 9. Hon. L. K. Mokoma • 10.Hon. L. Moramotse
  13. Hon. M. Malefane
  14. Hon. M. C. Hlao
  15. Hon. T. T. Mosena
  16. Hon. M. R. Khati
  17. Hon. M. Hlalele
  18. Hon. P. D. Mafereka
  19. Hon. T. P. Mokeretla 18. Hon. N. Motsamai • 19. Hon. S. H. Sekatle 20. Hon. T. L. Mokhosi
  20. Hon. M. Tlali