RRA met importers and customs brokers over compliance issues.
RRA today met importers and customs brokers to discuss compliance issues in customs which lead to customs duties and tax evasion.
Mr. William Musoni, the Deputy Commissioner for Customs Services reminded cross border traders and the brokers in customs to abide by the laws regarding international trade and contribute to the development of the nation by complying with taxes.
Mr. Ronald Niwenshuti, the head of risks of operational departments at RRA made a presentation on risks identified where out of 180 companies, 18 were ranked in high risk category due to non compliance.
General risks identified include pervasive culture of non compliance among brokers and traders, fraudulent activities with new importers, use of unauthorized borders, intentional misclassification of goods by clearing agents, limited knowledge on classification of goods by clearing agents, intentional use of fictitious invoices, abuse of investment certificates and exemptions, and transfer pricing between related parties, intentional falsification of country of origin and falsification of customs procedures codes, misdescription of goods, etc.
Traders and brokers were strongly requested to rectify malpractice that hinder taxation, international trade and work according to the laws.
Mr. Musoni requested the clearing agents to play positively their bridge role between the customs administration and traders by applying skills and integrity required in order to make the two parties happy of their work.
Fabien Byumvuhore, an accountant of one of the companies who attended the meeting commended Rwanda Revenue Authority for that gathering and vowed to put in practice the laws regulating taxes in customs.
He said: “We are happy of what was said here, to comply with taxes by presenting genuine invoices and tell always the truth in our business.”
The revenue administration envisages maximizing taxes by controlling the value chain and transaction of goods which starts from the customs, borders to domestic taxes.
Cheating in customs impacts seriously on the sales in domestic business. When the under pricing on the invoice is done at customs, it kills prices inside the country.