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22nd May 2018

The National Revenue Authority Confirms Government Owes the NRA Over Le82 Billion!

By a press release (05/05/18)

The National Revenue Authority has raised concerns over Finance Ministry's false claims that NRA is hugely indebted to the government.

 

In a press statement by the Ministry of Finance on self assessment, the Financial Secretary stated that the NRA owes the government 16.0 billion Leones in respect of Pay As You Earn (PAYE) and Withhold. Home ding taxes on rents, works and services outstanding over the last five years. (Finance Minister Jacob Jusu Saffa).

In response to the release, senior officials of NRA have authoritatively stated that the Minister of Finance is instead hugely indebted to the National Revenue Authority numbering over 80 billion Leones on several tax issues.

And as a way of make good their indebtedness, a meeting was recently summoned between NRA and the Finance Ministry in which an agreement was reached that NRA should withhold their payments to the ministry as the ministry owed the NRA the sum of eighty-two billion Leones.

This is the reason why NRA stopped to honour their tax obligations to the Ministry of Finance. NRA is an institution which collects money for government including PAYE (income tax) and Withholding Taxes but cannot touch a single penny of what it collects. It all goes to the Consolidated Revenue Fund.

Reports say the NRA itself is run administratively from monies allocated to it by Finance Ministry. It is from this it pays salaries and other obligations and services such as rents.

How does Finance Ministry calculate how much to give NRA for NRA to run its operations? By law, it is by commission. A certain percentage of whatever is collected by NRA is given back to it to conduct its operations as a national revenue collector. This is what the Law says.

All NRA staff are paid salaries and by Law, all staff should have deductions done as PAYE (income tax) so what gets paid is actually the Take Home After Deductions whilst the deducted amount gets paid back to government as PAYE Income tax.

All suppliers of services and rent also should get deductions done from amounts due them which are then paid to NRA as Withholding Taxes which they can claim later from Government when filing their taxes. Most businesses never reclaim it, reports say.

Government has been extremely cash-strapped and struggling since post-Ebola and so it has not been able to give the required amounts due to run NRA including pay in full all salary obligations and service obligations. So government has basically been owing itself by having NRA calculate the outstanding PAYE and Withholding Taxes and mark it down as cash due to be paid to government. That is why you can see the letter from the Financial Secretary requesting payment says NRA itself did the assessment of what it owes.

The new SLPP government wants to do reconciliation. They asked NRA to state how much government now owes NRA. NRA says government owes them 82 Billion Leones which was calculated as the outstanding amount owed from calculated commissions due NRA. (Photo below: NRA Finance Director Mr. Abdulai).
 


However, the Finance Ministry denies and says the money owed is far less than 82 billion Leones. The Finance Ministry acknowledges that indeed NRA is owed a hefty chunk because the APC government was running a cash-strapped economy in period of post-Ebola, and post-Iron Ore bust but Finance officials say though the debt is there but not up to 82 billion Leones.

The past few weeks have been spent in back and forth calculations of what government actually owes NRA. Finance Ministry does not want to accept it is 82 billion Leones so they are now saying they want to do recalculations of ALL amounts which NRA says it has been raising as revenues paid into the Consolidated Fund. This is why the second part of the letter is requesting the cash flow and bank statements for two of the key revenue areas; namely ASYCUDA (Customs duties) and Admin Fees for processing Duty waivers.

NRA was set up by the former President Ahmad Tejan Kabbah led SLPP government that ruled the country from 1996 to 2007. After eleven years of the rebel war was declared officially over in 2002, the biggest challenge facing the government was how to raise revenues from domestic sources, enough to pay salaries and meet government’s other basic financial commitments.

Since its inception, NRA has played an invaluable role in raising much needed revenues. Commendable is the fact that ever since it started operations, NRA has year after year exceeded the annual targets set by World Bank, IMF and the Ministry of Finance for revenue collections. Courtesy: Satellite News


Cheap SLPP Propaganda Smears the NRA Boss Haja Kallah, a Strong APC Woman!

 
By a press release (05/05/18)

APC supporters are fighting back to defend the NRA boss Haja Kallay who is being bombarded by the ruling SLPP in a propaganda smear.

Following are some governance facts the National Revenue Authority NRA workers' duties and obligations should be in the execution of their jobs:

1. Only entity legally mandated to collect PAYE and Withholding Taxes is National Revenue Authority NRA;

2. NRA collects money for government including PAYE (income tax) and withholding taxes but cannot touch a single penny of what it collects. It all goes to Consolidated Revenue Fund;

3. NRA itself is run administratively from monies allocated to it by the Finance Ministry. It is from there it pays salaries and other obligations and services such as rents; (Photo below: NRA Director Haja Kallay).
 


4. How does Finance Ministry calculate how much to give NRA for NRA to run its operations? Well, by Law, it is by commission. A certain percentage of whatever is collected by NRA is given back to it to conduct its operations as a national revenue collector. This is what the Law says;

5. All NRA staff are paid salaries and by Law, all staff should have deductions done as PAYE (income tax) so what gets paid is actually the Take Home After Deductions whilst the deducted amount gets paid back to government as PAYE Income tax;

6. All suppliers of services and rents also should get deductions done from amounts due them which are then paid to NRA as withholding taxes which they can claim later from government when filing their taxes. Most businesses never reclaim it;

7. Government has been extremely cash-strapped and struggling since post-Ebola and so it has not been able to give to NRA its required amounts due to run NRA including pay in full all salaries obligations and services obligations so government has basically been owing itself by having NRA calculate the outstanding PAYE and withholding taxes and mark it down as cash due to be paid to government. That is why you can see the letter says NRA itself did the assessment of what it owes;

8. Now, the new Government wants to do reconciliation. They asked NRA to state as to how much does government (Finance Ministry) now owe NRA and I understand NRA says Government owes it 82 Billion Leones which was calculated as the outstanding amount owed from calculated commission due NRA;

9. Finance Ministry denies and says the money owed is far less than 82 Billion Leones. The Finance Ministry guys acknowledge that indeed NRA is owed a hefty chunk because Government was running a cash-strapped economy in period of post-Ebola, and post-Iron Ore bust but the Finance officials say though the Debt is there but not up to 82 billion Leones;

10. The past few weeks have been spent in back and forth calculations of what government actually owes NRA. Finance Ministry does not want to accept it is 82 billion Leones so they are now saying they want to do recalculations of ALL amounts which NRA says it has been raising as revenue paid into the Consolidated Fund. This is why the second part of the letter is requesting the cash flow and bank statements for two of the key revenue areas; namely ASYCUDA (Customs duties) and Admin Fees for processing Duty waivers;

11. Basically, what that letter represents is merely an attempt to continue the process of Finance Ministry calculating how much it really owes NRA. THAT IS ALL!!! Nothing Else! NRA says it is 82 billion minus 16 billion totaling 66 billion owed to NRA by Finance Ministry whilst the Finance Ministry is saying it is far less money which they owe to NRA! THAT IS ALL THAT LETTER IS ABOUT;

12. The letter nor say Haja Kallah tiff 16 billion Leones and put in her pockets!!! The letter nor say Haja Kallah "scoff" 16 billion Leones as some badheart man dem day pass en post from forum to forum!!! If you too fool for understand waytin really the letter say, well understand now and lef the woman safool. If you however bin know the truth but just want for pwell the lady in name, GOD GO PAY YOU!!! Badheart Tin den!

13. There is a lot of cheap, cheap propaganda being thrown at strong APC figures. Haja Kallah is a strong APC Woman and has never denied this. So some people want to hound her out of NRA and bring in a preferred SLPP Commissioner General.

"That's your prerogative but let it not be done through a method of giving a dog a bad name in order to whip it or kill it! Thanks!," APC supporters reminded the SLPP smear campaigners against Haja Kallay's person.

Courtesy: By an ardent APC Supporter

TRIBUTE: ALPHA SHAW


1958 -1980

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