Crime & Investigation

Rwanda: Rwf 1.3bn Taxes Recovered by Anti-fraud Police Department

The Rwanda Revenue Protection Department (RPD) recovered Rwf1.3 billion taxes from September 2015 to May 2016 that otherwise would have been evaded through smuggling and fraud.

RPD is a Rwanda National Police unit that support Rwanda Revenue Authority (RRA) in fight against smuggling and fraud to protect public revenues.

According to statistics from RPD, stuff over Rwf191 million was recovered in November and Rwf101 million recovered in December, approved last year.

The recovered public money include taxes that would otherwise be evaded and fines levied on evaders.

In an interview, this the Commanding Officer of RPD, Chief Superintendent of Police (CSP) Sam Bugingo said; “Our aim is not to recover as much money as possible… it’s to ensure that everyone understands the importance of paying taxes and commits to that. Traders need to know that it’s the taxes that run the country’s development activities which benefit them as well.”

He attributed the successful operations against fraud and smuggling to strong public partnership, who provide information on such tax defaulters.

The acid rest of an efficient government is its ability to generate sufficient revenue to finance its enormous expenditure, and all things being equal tax should be in the forefront in government revenue generation.

According to researcher, empirical evidence have shown that the uncooperative and unprogressive attitude of any citizenry towards tax payment result in major financial problems of government.

Bugingo said part of their responsibilities is to inspect products coming in the country through all channels to ensure the owners pay taxes, but also deal with merchandises that are illegal in Rwanda.

“We understand smugglers use various tricks but we always try to be ahead of them and taking varied measures to detect and intercept them. Some of the traders undervalue the commodities; others use forged receipts and alter packaging.”

It will be recalled that the hall mark of technological advancement, economic growth, social satisfaction, the people’s needs and value to the society center exclusively by within the ambit of taxation.

Also the increasing impact government is making in economic development is such that it requires substantial financial assistance from every individual in the society.

Bugingo revealed that, “Majority of the intercepted commodities include food stuff, liquors and clothes. The law is clear and this kind of malpractice will not be tolerated.”

Tough laws

Article 369 of the Penal Code stipulates that a taxpayer found guilty of tax evasion shall be liable to a term of imprisonment of between three to six months and a fine equal to the evaded tax.

Under the same article, if the taxpayer is guilty of deliberate tax evasion, such as false deliberate accounting entries, forgery and falsification of records or any other act punishable by law, he or she shall be liable to a term of imprisonment of six months to two years and a fine equal to the evaded tax.

“A big number of cases related to tax evasion are handed to prosecution each month. This has helped to send a strong warning and to deter anyone with intentions to engage in this illegal activity,” CSP Bugingo explained.

“We know that some business people are always looking for loopholes to smuggle goods – and that is why we conduct random operations, mount roadblocks and conduct targeted operations based on information from whistleblowers or the public through community policing.”

“Through such operations, we have found shops and supermarkets selling smuggled goods without tax stamps. In order to recover the taxes, we seize these products and inform RRA, which imposes fines on the wrongdoers.”

CSP Bugingo went on to say that RPD has officers deployed across the country and at all border posts.

“We collaborate with all stakeholders to educate and sensitize the population on tax payment, investigate taxation offences and facilitate commercial activities,” he added.

RPD and RRA have put in place strategies to improve tax adherence among which include; establishing a platform for tax good governance, which discusses reforms in revenue collection, as well as engage the business community on how they can cooperate with authorities to fight illegal business practices that are conducted with intent to evade tax.


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