Outcome of the Seychelles Revenue Commission (SRC) Tax Amnesty Programme |28 January 2022

Mrs Andre (right) and Mrs Alcindor during the press conference yesterday (Photo: Joena Meme)

SRC partly satisfied with debtors’ turnout

•           Wishing that more people would have come forward

With its priority being to collect money for the government, the Seychelles Revenue Commission (SRC) have mixed reactions regarding the outcome of the Tax Amnesty programme set up last year to encourage taxpayers who have defaulted on their payments.

The Tax Amnesty programme was introduced with the objective of encouraging taxpayers whose taxes were not in order to sort out the matter with SRC, while at the same time, the government would collect more revenue.

Director for Enforcement within the SRC, Fabiola Alcindor, said they are satisfied with the turnout, especially those who came forward willingly seizing the grace period to sort out any unfinished business with the SRC, putting their tax affairs in order, while wishing that more people would have come forward.

The amnesty programme collected R145,851,374.08 in primary taxes, while interests collected amounted to R21,277,008.11, bringing the total collection to R167,128,382.19.

Regarding penalties waived, the total amount is R91,763,764.14, while the interests waived totalled to R38, 848,474.24.

As for the total debt reduction the final amount is R297,740,620.57.

Speaking during a press conference yesterday at Maison Collet in Victoria, Mrs Alcindor who was being assisted by director for Tax Payer Services Gayathri Andre, said the SRC is satisfied with the sum collected, even if they wished those with bigger debts would have come forward to settle their arrears.

A total of 3263 tax payers were involved in the exercise, either after being contacted by the SRC, or voluntarily came forward to take part in the amnesty.

Only 1344 participated fully, precisely cleared their debt, thus fully benefitted from the amnesty.

Among the group, 1700 were already in arrears, while the remaining voluntarily came forward.

Mrs Alcindor noted that taking into account the number of debtors, the SCR would have wished that they all came forward and sorted out their debt, but still satisfied with the amount of reduced debts.

Launched in July and ended in December last year, the initiative was being used as part of efforts to increase revenue collection, especially in light of the Covid-19 pandemic.

Under the programme, taxpayers benefited from various percentages of waivers on interests accumulated on tax arrears.

It was conducted in three phases, in which during the first two months – July and August – the percentage of waivers on interests was 75 percent while the waiver on penalties was at 100 percent at all times, while during the second phase – September and October – the percentage of waivers on interests was 50 percent while the waiver on penalties remained at 100 percent.

During the third phase – November and December – the percentage of waivers on interests was 25 percent while the waiver on penalties remained at 100 percent.

The programme applied to outstanding tax debts, under-declared taxable income/assessable income, and unfurnished business tax returns, presumptive tax returns, and value added tax returns.

Mrs Alcindor reminded debtors that it is never too late to settle arrears with the SRC through the possibility of negotiations of debts and payment arrangements.

She however noted that those who did not take part in the amnesty programme and are still not paying will have to face the enforcements steps of the SRC, including seizure of assets and even prosecution.

Roland Duval