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More room for taxes

A tax analyst with Ernest and Young have said that although there is room for government to introduce new taxes, it would be more effective if government could police current taxes.
Cameron Kotze said better policing of existing taxes will result in additional revenue to make up the shortfall expected in the budget because of dwindling SACU revenue.
He said: “Yes there is (room to introduce new taxes) but new taxes require additional skills which are under pressure at present. Better policing of existing taxes will result in additional revenue to make up for the shortfall that is expected due to reducing SACU revenue.”
Kotze added: “Better policing of existing tax legislation – non-declaration of income, income that is treated as capital in nature (and exempt from tax) by the taxpayer but which is taxable, tax on income paid to foreigners who do not declare that income to the Inland Revenue – the withholding tax on service fees paid to a non-resident should go a long way to address problems of decreased revenue.”
In addition to tax publicity campaigns to inform taxpayers about the need for paying tax, the tax analyst also suggested that tax officers should be trained to understand some of the technical issues so that taxpayers can be challenged with authority.
“Better policing of the legislation will also result taxpayers taking much more care as to what is disclosed in tax returns.”
In September last year, the Minister of Finance, Saara Kuugongelwa Amadhila announced a raft of proposals to amend tax laws with the aim of encouraging domestic value addition while at the same time deepening and diversifying the revenue base for the purpose of strengthening revenue collection.
The proposals, however, did not go down well with businesses, especially the mining community who were very vocal against them. President of the Chamber of Mines, Mark Dawe threatened at the time that if their concerns were not urgently addressed, companies would have no choice but to officially inform international stock exchanges of government’s intention to charge 15% VAT on exports and a 5% export levy.
Government eventually backed down on its proposals.

About The Author

Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.