Hon. Tēvita Lavemaau. Photo/Soane Gallagher Niukapu
The Minister of Revenue and Customs, Hon. Tevita Lavemaau, has stopped referral of any cases related to late payment of taxes and PAYE to court unless he personally approves them.
This means some companies and businesses in Tonga which have outstanding tax bills have relaxed because the Revenue Ministry will now invite them to discuss their cases first without going directly to court.
Kaniva News understands the move was made by the minister as an attempt to solve the problems caused by the cost of investigating tax arrears.
It is understood the department has lost a lot of money when prosecuting businesses and companies because of legal costs and court fees.
In an e-mail sent by Hon. Lavemaau to his heads of department and CEOs on April 2, the minister said he wanted to build a good working relationship with the department’s clientele rather than making them enemies of the government because of their unpaid arrears.
The e-mail, which has been seen by Kaniva News, said the new strategy meant all cases would be assessed on a case by case basis and would depend on the minister’s approval.
“It is my strong belief that we need to promote a good relationship with our clientele especially to support our move to Voluntary Compliance,” Hon. Lavemaau said in the e-mail.
“It takes time and tireless effort to get them on-board. However, the long term benefits for our economy is enormous. We need to build the trust and confidence of the business community in us by getting out there and discussing with them the various issues and concerns that we have, such as non-registration for CT, Late Payment of CT and PAYE.
“Discuss with them the alternatives solutions and wider implications if we take the force of law on our hands. Get them on-board.
“As from April onward I would urge you all to take a new route and strategy as briefly explained above.
“Further I would like to cease referral of any cases to Tribunal and Court without any prior approval. This mechanism is only to apply as a matter of last resort.”
The main points
- Some Tongan companies with unpaid taxes are sleeping easier this year because the Ministry of Revenue and Customs has decided to invite them to discuss their cases without going directly to court.
- The decision was made by Minister of Inland Revenue Hon. Tevita Lavemaau in an e-mail revenue staff in April.
- The minister has stopped the referral of any cases related to late payment of taxes and PAYE to court unless he personally approves them.
- Kaniva News understands the move was made by the minister as an attempt to solve the problems caused by the cost of investigating tax arrears.
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