By Alieu Amara Suwu
The National Revenue Authority (NRA), in exercising its authority, has on the 24th of January, 2025, summoned and engaged betting companies to adequately caution them about tax compliance and tax returns, as mandated by law, and to remind them about data supply to the Authority.
This engagement was held at the NRA headquarters on Gloucester Street in Freetown.
It is worth noting that subsection 1 of section 15 of the NRA 2022 Act specifies that: “The object for which the Authority is established is to administer and enforce revenue laws promulgated for the assessment and enforcement of collection of revenues on behalf of the Government.”
As per law, the Finance Act 2024 has established the legal framework for many of the tax and infrastructure proposals announced in the Budget Day speech. It also includes measures related to property, climate action, and small businesses. The Act includes changes to personal and corporate taxation, such as the capital gains tax (CGT) rates, and measures related to excise duty, such as the excise duty on petroleum products, gambling services, and finished alcoholic products.
James B. Tengbeh, NRA Acting Commissioner, Domestic Tax Department, in his address to the companies’ representatives, expressed dissatisfaction over the poor turnout of the betting companies, notwithstanding the letters of invitation they sent out to the various companies.
Commissioner Tengbeh discussed the issue of submission of returns, which has to do with various tax handlers, which include Pay As You Earn (PAYE), withholding taxes, the Goods and Services Tax (GST), corporate income tax, personal income tax, and the excise taxes.
He said there are fines set aside for any business enterprise that is at fault with the law on tax returns: for delays in submitting tax returns, a fine of NLe5000 is levied, and for failing to submit, it attracts a fine of NLe10,000. He emphasized that these tax returns should be submitted at the end of every year. And for the year 2024, they have until April 2025 to make all submissions of tax returns. He, however, said the PAYE tax should be submitted at the end of every month.
He warned those betting companies that are not complying with the NRA to refrain from such or risk facing the laws of the country. He added that this is not a witch hunt but ensuring that due diligence is followed.
Commissioner Tengbeh also spoke about ITAS, which is an automatic system, and also spoke about the agreement signed with N-SOFT that was ratified by Parliament. He assured that, going forward, the relationship with these companies would be good.
Martina Baindu Egbenda, NRA’s Director of Legal and Corporate Services, informed us that what the NRA requires is the submission of data relating to the betting companies’ operations.
She said a few years ago the NRA signed a contract with one company called N-Soft that was charged with the responsibility of assisting the NRA to look into the data and feed the NRA with the relevant information that they required.
She noted that they are not doing this because they just want to do it, but following laws that are enshrined in the country’s laws.
George Smith, the NRA’s Manager of Integrated Tax Administration System, gave a PowerPoint presentation, stating that taxpayers should register with the excise tax system, submit excise tax returns on or before the 21st of the following month after the end of the tax period, and pay the amount due on the same due date as mentioned above while the excise return is submitted monthly.
Representatives from various betting companies responded by posing questions and seeking clarifications on what was not clear.
