The tax administration calls the tourism and hotel sector under the tourism chamber to comply with tax obligations after the report identify them as high risk taxpayers.  The research conducted by the tax administration revealed that many of the hotels have been claiming losses over the years and the tax administration was wondering how the business can still operate in such condition of consecutive losses without closing.   According to the report, on average losses claims declared were -28% by large taxpayers, -12% by medium taxpayers and -14% in small taxpayers. Automatic word wrap The sector is subjected to three types of taxes namely PAYE, VAT and income taxes among others. Deputy Commissioner General Pascal Ruganintwari Pascal said that many hotels use staff without paying for them Pay As You Earn (PAYE).Automatic word wrap Ruganintwari indicated that many of the hotels do not pay PAYE for their staffs while they use many of them. While some of the owners in that sector claim that they fail to comply due to their losses, DCG Ruganintwari said that losses should not be excused as reason of not paying taxes as the tax administration does not also charge taxes without a profit made. Gerard Mukubu, Deputy CEO and spokesperson of Private Sector Federation said that hotels are given many opportunities to develop themselves thanks to many seminars and conferences organized in Rwanda, noting that those making profit should also comply with tax obligations for the benefit of the nation as well as to their own interests. Some business people in this sector suffered losses in the past, Mukubu explained that their failure was caused by incapacity to pay bank loans as well as mismanagement of the businesses where some used their relatives who are not necessarily competent in that industry. Mukubu said that PSF empowers capacity of hospitality and tourism sector by providing them training required for their better management.Automatic word wrap Francine Uwera, second vice chairperson of PSF, commended the tax administration for the dialogue with the tourism chamber to find out solutions of being the promoter of national development instead of being a burden to the nation due to lack of tax compliance. She explained that some cases of lack of compliance are due to ignorance, requesting for more tax education to the business owners.Automatic word wrap Uwera however pointed out that those who fail to comply willingly must also rectify their ways towards more compliance. “We must have a role in national development not a hindrance,” believing that in partnership with RRA they will find out solutions to key problems in the sector.