A Critical Analysis of Effectiveness of Tax Offences Control Mechanisms Under Rwandan Law
par Charles KABERA
Kigali Independent University - LLB 2008
Apart from administrative sanctions provided by tax laws, any person who commits offences provided for by the tax law may be subject to two categories of additional sanctions: those taken by the Commissioner General of RRA and those taken by the competent tribunal51(*).
a) Sanctions taken by the Commissioner General
Sanctions taken by the Commissioner General of RRA include closure of business activities for a period of thirty (30) days and publishing the tax offender in nationwide newspapers.
b) Sanctions taken by Courts/Tribunals
The additional sanctions taken by courts/tribunals include barring the tax offender from bidding for public tenders and withdrawal of a business register. The sanctions taken by tribunals/courts are based on the gravity of the offence committed.
According to article 226 of the n° 21/2006 of 28/04/2006 establishing the Customs System, Customs may take one or more of the following administrative measures against one or more of the offenders of the Customs law:
· Temporarily deny access to Customs offices, bonded warehouses, or temporary storage facilities;
· Temporarily suspend or terminate authorization to act as a clearing agent;
· Temporarily suspend or terminate his/her authorization for a customs procedure with economic impact;
· Temporarily suspend or terminate access to Customs electronic network.
Other administrative sanctions taken by the tax administration but not mentioned in the tax law include:
· Refusal to benefit from tax clearance certificate (quitus fiscal);
· Refusal to benefit from facilities of payment in instalments of their tax arrears;
· Refusal to allow the certificate giving right to a public tender;
· Refusal of automatic refund (refunded after audit);
· Non renewal of the of clearing agencies' license due to poor performance record
· Denial of pre-clearance facility
According on law on tax procedure, A person who obstructs or attempts to obstruct the activities or duties of the Tax Administration in the exercise of its powers, aids, abets or conspires with another person to commit a violation of tax Law, is subject to penalties as those provided to the taxpayer52(*).
* 51 Article 67 of LTP
* 52 Article 66 of LTP
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