IV.7. Audit activities
During the fiscal year 2007, Small and Medium Taxpayers Office
concluded 455 audit cases based on period (one fiscal year) against 480 audit
cases planned which is an achievement of 94%. Issue oriented audits handled
were 32 and the comprehensive audits were 423. In SMTO, additional assessment
(tax and penalties) raised as a result of audits an amount equivalent to Rwf
3.2 billion or 8.3% of total amount collected by the office as shown in the
table below:
Table 1: Amount of additional assessments and penalties by tax
in SMTO (Values in Rwf)
|
Type of Tax
|
Additional taxes
|
|
Principal
|
Penalties
|
Total
|
|
VAT
|
857,106,963
|
11,252,596
|
868,359,559
|
|
PAYE
|
131,391,156
|
66,466,498
|
197,857,654
|
|
Profit tax
|
1,564,960,924
|
594,245,307
|
2,159,206,231
|
|
Total
|
2,553,459,043
|
671,964,401
|
3,225,423,444
|
Source: RRA, 2007
Comparing amount recovered from audits and that collected
through self assessment, the compliance ratio in this segment is 91.7%. This
figure however good it is does not mean that informal sector has reduced. The
reason is that the Authority has focused its efforts to the existing taxpayers
in this segment in order to improve its compliance.
In Large Taxpayers Office, 266 cases were audited
comprehensively against 256 cases planned, thus an achievement of 103.9%. Out
of 266 cases audited, 191 were finalised contributing an additional amount of
Rwf 12.8 billion. The table below shows in details the additional assessment
raised as a result of audits for 2007 in LTO. This makes it 88.8% compliant.
Table 6: Additional assessments and penalties by tax in LTO
(Values in Rwf)
|
Type of Tax
|
Additional taxes
|
|
Principal
|
Penalties
|
Total
|
|
VAT
|
4,353,407,287
|
812,028,587
|
5,165,435,874
|
|
PAYE
|
307,582,907
|
83,049,271
|
390,632,178
|
|
Profit tax
|
4,402,186,628
|
995,580,490
|
5,397,767,118
|
|
Excise duty
|
290,955
|
29,096
|
320,051
|
|
Withholding Tax
|
1,426,986,107
|
504,872,516
|
1,931,858,623
|
|
Total
|
10,490,453,884
|
2,395,559,960
|
12,886,013,844
|
Source: RRA, 2007
In Customs and Excise Department, 43 post clearance audits
were conducted against 208 planned for 2007, thus an achievement of 20.7% and
revenues recovered totalled to Rwf 353.2 million. This underperformance was due
to restructuring that was going on and shortage of staff in the department.
|
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