STATEMENT BY THE RT HON PRIME MINISTER
DR B.SIBUSISO DLAMINI
AT THE SWAZILAND REVENUE AUTHORITY
THURSDAY 27 OCTOBER 2016
Honourable Minister for Finance
Commisisoner-General of the Swaziland Revenue Authority
Ladies and gentlemen
The members of the general public who are familiar with the requirements of our income tax legislation will be aware of the significance of 31 October in the calendar. It is the deadline for submitting annual tax returns. Today I am submitting my own, both for myself as an individual and in respect of my companies.
In the absence of prior agreement to delay submission, failure to meet the 31 October deadline will give rise to penalties. Less severe than they were, but where taxpayers submit late they do have to be penalized, because late submission on a large scale has a seriously negative effect on Government finances and, correspondingly, in the supply of public services.
My addressing this gathering and the general public is not to boast about the submission of my own tax returns. Nevertheless, one feels a degree of pride in meeting one’s national duty to comply with the tax legislation.
The reason for my making a public issue of my submissions is to lead by example, and publicly remind every income-earning adult, and every company, in this country that there is a statutory requirement to register with the Swaziland Revenue Authority (SRA). A Tax Identification number (TIN) is issued, and thereafter annual tax returns to the SRA must be submitted, in return for which an assessment is received from the SRA.
This process is not optional, it is mandatory. If you ask me the question – why does paying tax have to be mandatory I will say to you – where else will Government get the funds to provide all the public services? How will we pay for universal primary education, virtually free medical treatment, the provision of roads and bridges, personal and national security, and drought relief in the event of such emergencies? Every country in the world, except for a few that are massively endowed with highly lucrative natural resources, relies on tax and similar revenue for running its public services.
But, sadly, we have empirical evidence of an extensive reluctance in our country to acknowledge the need to pay tax, leading to a considerable degree of tax evasion. As a country we have been fiscally vulnerable in relying so much on the unpredictable revenue from the Southern African Customs Union (SACU). Yes, very vulnerable. And that is because our domestic source revenue, such as taxation, is far too low, both in relation to total revenue and GDP.
Countries like the United States and the United Kingdom employ the most rigorous processes to ensure everyone pays the taxes that they should do. Penalties are severe. Prominent public figures end up in jail for tax evasion. No quarter is given. Because tax evasion is a criminal act and harms a nation.
Tax evasion arises from denial of responsibility and loyalty to duty as an income-earning inhabitant of this country. My very serious advice today is – register before you get caught evading tax. The penalties for tax evasion are severe. As the SRA builds up staff and expertise it is developing a programme of more intensive scrutiny, which includes the lifestyle audits.
So when Government is going through a fiscally tight period, as it is at the present time, and complaint is the order of the day, please direct it a little more towards the people who expect all the public services but are not prepared to pay anything towards them. Do they expect their neighbor to comply with the law while they do not? How selfish and irresponsible would that be?
As I pass these documents to the SRA, I appeal to all income earners of our society to be registered with the SRA, submit the annual tax return and pay the assessed tax promptly.
Thank you.