State-owned businesses owe 130 ml. Br. in taxes

By our staff reporter

The Federal Inland Revenue Authority, FIRA said public-owned enterprises have shown a great degree of laxity in paying their income tax. The authority disclosed that during the last six months over 130 million Birr in unpaid taxes has been accumulated by these enterprises.
At a forum convened here on Friday to sort out the relationship between FIRA and the enterprises with regard to tax collection, Revenue Minister Ato Getachew Belay told general managers and financial officers of 145 such institutions, pointblank, that there will be no room for indulgence on tax payments from here onwards.
The speeches delivered by the Minister and other officials of FIRA clearly showed that FIRA has failed in effectively enforcing tax collection when it comes to state-owned businesses. The officials admitted that FIRA entertained wishful thinking that these enterprises, by virtue of their accountability to the government, would not engage in tax evasion that has been the hallmark of some private companies.
Responding to complaints by some enterprises that FIRA has frustrated compliance with the tax law by failing to reimburse overpayment of taxes, Minister Getachew noted that tax returns would be applied in due course of time. According to the complaints presented by the representatives of some companies over-taxation has repeatedly occurred in small and not so profitable firms. Similarly it was pointed out that tax evasion is committed by profitable organizations
Capital learned that the Ministry in line with the tax reform program is doing its level best to enhance the capacity of tax collecting offices at both federal and regional levels.