Niël Terblanché
In a proactive move to combat revenue evasion and protect Namibia’s fiscal integrity, the Namibia Revenue Agency (NamRA) has officially launched a comprehensive Reward System Policy designed to incentivize both NamRA staff members and private individuals to collaborate in identifying and reporting cases of duty and tax evasion.
According to the Chief of NamRA’s Strategic Communications and Support Engagement, Steven Ndorokaze, evasion practices such as undervaluation, misclassification, concealment, and misrepresentation have long been a challenge for revenue collection agencies worldwide.
“The implementation of this Reward System represents a significant step in addressing these issues and ultimately curbing revenue losses,” he said.
Ndorokaze pointed out that the Reward System, provided for in accordance with section 102 of the Customs and Excise Act, 1998 (Act No. 20 of 1998), will enable qualifying individuals to receive rewards of up to one-third of the penalty paid or auction sale proceedings, contingent upon their provision of specific information leading to the interception of the consignment.
“However, it’s important to note that the decision to grant rewards will be subject to a thorough assessment of each case by a competent Committee, considering all relevant facts and circumstances. Rewards cannot be claimed as an automatic entitlement,” he stressed.
According to Ndorokaze, the competent committee will evaluate various criteria when determining the reward to be granted which include the level of specificity and accuracy in the provided information, the risks taken by the informant, the extent of assistance rendered, and whether the information leads to the identification of individuals involved in evasion.
The committee will also take into account and recognize special initiatives, efforts, and skills that contribute to the recovery of State revenue.
According to Ndorokaze rewards will be specific to each case and do not extend to other cases with a similar modus operandi involving different parties.
He urged prospective participants in the new system to provide truthful, verifiable, and indispensable information.
“Monetary compensation will only be disbursed after NamRA has taken action, penalties and auction sales have been collected, and the case has been resolved,” he specified.
It’s important to note that this policy exclusively applies to the Customs and Excise Act and does not extend to other Acts administered by NamRA.
Ndorokaze emphasized that NamRA believes that the implementation of the new Reward System will not only act as an effective tool in tackling revenue evasion but also promote a sense of shared responsibility among all stakeholders.
“The system emphasizes the importance of every citizen in preserving the integrity of Namibia’s revenue collection processes. By encouraging collaboration and reporting of evasion cases, NamRA is taking a proactive stance in safeguarding the nation’s financial health,” he said.
