Generally, tax compliance refers to the adherence of tax laws including timeous remittance of tax. Accordingly, non-compliance of the said laws results in prejudice to the national fiscus which will ultimately derail government’s endeavours. Consequently, to curb non-compliance with tax laws, the taxman is empowered to levy penalties and interest on taxpayers in breach of the tax laws. In this regard, it is imperative that business operators understand that the authority bestowed on the taxman may cripple business operations if exercised to its limit. As a matter of fact, the taxman can place chains on one’s business if caught on the wrong side of the law, particularly Value Added Tax (VAT) registered business operators.
As alluded to above, non-compliance with tax laws is a serious offence which may cost you money and business reputation. Accordingly, a habitual offender to the provisions of the VAT Act may attract the full wrath of the taxman which may lead to the closure of business operations. Some of the major offences that may lead the taxman to close down your business includes, incorrect issuance of tax invoices, submission of fabricated VAT returns and non-payment of tax. Primarily, such practices are regarded as tax evasion schemes that are intentionally crafted to prejudice tax revenue. Essentially, where BURS ascertains that a taxpayer is in breach of the tax law by way of tax evasion schemes and the taxpayer is not forthcoming to regularise his tax affairs, a court order is obtained, and they proceed to shut down the business.
Literally, the taxman is empowered by the law to use reasonable force to ensure that the offender’s business is closed down including putting chains, locks, fencing etc. Accordingly, it is vital that taxpayers endeavour to operate within the parameters of the tax laws to avoid drastic measures that may cripple business operations.
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