Monday 12 April 2021
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Spy agency companies avoiding tax

….NCIS companies tax not up to date
SEVERAL businesses owned by the Namibia Central Intelligence Agency (NCIS) have not been paying tax for years, The Patriot has learned.
It is understood that the businesses that form part of the properties owned by the NCIS, namely a hunting ranch and safari lodge near Omaruru, a lodge in the Brakwater area near Windhoek and an upmarket accommodation outlet in a Windhoek suburb, have been defaulting in value added tax and income tax payments.
All these properties are said to be owned through one company with its head office based Windhoek.
The businesses have avoided paying tax despite the Value Added Tax Act 10 of 2000 stating that all activity exceeding N$500 000, be considered taxable activity.
An official from a reputable auditing firm in the country has said that unless an entity is a Section 21 company, a welfare organisation or exempted on the basis of its establishment act, it is required by law to pay tax. An example of such companies would be the MVA Fund and Social Security but they remain obligated by law to pay VAT.
Section 21 of the Companies Act 28 of 2004 makes provision for non-profit associations to be exempted from paying tax.
The Patriot also has it on good authority that the accommodation establishment has not been contributing to Pay As You Earn (PAYE) for their workers.
Information The Patriot has gathered shows that the ranch near Omaruru was registered in 2008.
The five star boutique hotel  has two directors, Pauline Nausiku Imalwa (60) and Elias Angula (53).
The businesses, as per their founding statement at BIPA, lists its commercial activities as farming, tourism and trading in activities that is relevant to the business.
Imalwa, who reached her retirement age this month, is the Director of Finance within the NCIS while Angula is the Director for Human Resources in the Agency.
Both were not available for comment as Imalwa is already on leave and Angula was just not reachable.
It is also understood that Imalwa’s husband, a retired NCIS operative is spending his retirement days on the ranch.
Although to tax records available, the closed cooperation with significant commercial assets failed to pay any VAT from 2014 to date.
Their last VAT payment was recorded in July 2015 which was an amount of N$ 160 262,55.
The company believed to be running the different properties has also avoided paying any tax for a number of years.
The entity that was registered in 2012 and made their last VAT payment of N$57 588,00 in March 2014.
While the businesses employ people, the records shows that they have been inconsistent with their PAYE payments.
Only the safari ranch made a recent PAYE payment of N$28 000 in October this year and another payment of N$16 000 in November also this year.
Records also show that the agency’s accommodation establishment in Windhoek have also been on the avoiding side of paying PAYE for its employees.
Secrecy within the NCIS and its dealings is nothing new.
There have been several reports of allegations of corruption, gross abuse of power and money-making schemes which were all attributed to the agency’s secrecy policy.
The Patriot earlier this year quoted media reports stating that disgruntled agents were not pleased with the lack of scrutiny of the agency by the Parliamentary Committee on Defence, Security and International Relations.
With little to no record of the financial activities by the many properties and businesses owned by the agency, it is questioned whether government, through NCIS benefits as a shareholder from the financial investments into these different properties and businesses engaged in by the agency.
A tax expert who spoke on condition of anonomity queried who the entity is, that is entitled to after tax profit and whether Government is paid dividends to reward it for its shareholding.
The NCIS earlier this year sought a court intervention in an attempt to prevent The Patriot from publishing an article that would expose their property dealings.
The NCIS in its court documents claimed that the information The Patriot intended on publishing fell “within the scope of sensitive and or classified information” and that it was unlawful to have the information and that circulation and or publication was prohibited.
The Patriot won the case in the High Court but the newspaper has since been summoned to appear in the Supreme Court in February 2019.

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