Tax evasion is a criminal offence

On Tuesday, the National Revenue Authority (NRA) announced that it had frozen accounts and confiscated assets of more than 10 multilateral business tax defaulters operating in the country.

The NRA said that among the companies that had failed to remit their taxes included airlines, hotels, and trading companies. This had resulted in the loss of SSP10 million by the NRA.

The NRA said the confiscated property would be auctioned to the public while money in the frozen accounts will be wired directly to NRA accounts as per the dictates of the law guarding revenue collection.

This is a great step taken by the National Revenue Authority to recover the huge amount that has been lost by those who failed to pay the tax. In most countries, anybody who refuses or fails to pay tax is considered a criminal.

According to international law, tax evasion is an illegal activity, and when a person or entity deliberately avoids honouring such an obligation, there are always legal ramifications attached to it.

 Those caught evading taxes are often subject to criminal charges, and substantial penalties are always imposed. In most developed countries, like the United States, one who willfully fails to pay taxes is found guilty under the federal offence of the Internal Revenue Service (IRS) tax code, and it is punishable by the law. So, those companies and business entities whose assets have been frozen are supposed to be prosecuted in the legal court and pay fines.

These are people who want to use state facilities and security without paying back to the state. How do they expect the police to protect their property day and night while they do not pay tax to the government? These are the same people who will blame the government for not providing enough security to protect their property when their assets are stolen or damaged by criminals.

 It is through these taxes that the government can provide the necessary services to the citizens, So, failing to pay them is like stopping the citizens from having access to basic services

Taxation has been the primary source of revenue for many countries across the world. The money received by the government, which is known as tax revenue, can be utilised for extensive purposes such as infrastructural development, in the form of roads, public healthcare, education, defence and civil services. This enables the government to fulfil its development goals.

The citizens and business entities must pay taxes. In addition, proper regulation of the tax system, and the efficient collection of payments will provide governments with adequate funds to invest in improving the overall quality of life of their citizens.

The national revenue authority should ensure that every private sector has to pay tax including the working classes to enable the government to meet its goal for the citizens.