Tax an overview
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Tax – an overview. Nigel Dixon-Warren. Introduction. Does Botswana need tax? Government revenues* (31/03/09 = P30bn): Income Tax ( incl CTT )P8bn (26.7%) VATP4.25bn (14.2%) CustomsP7.75bn (25.8%) Mineral royalties & Divs P6.7bn (22.3%) Divs from parastatals **P1.4bn (4.7%)

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Tax – an overview

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Tax an overview

Tax – an overview

Nigel Dixon-Warren


Introduction

Introduction

  • Does Botswana need tax?

  • Government revenues* (31/03/09 = P30bn):

    • Income Tax (inclCTT)P8bn (26.7%)

    • VATP4.25bn (14.2%)

    • CustomsP7.75bn (25.8%)

    • Mineral royalties & DivsP6.7bn (22.3%)

    • Divs from parastatals**P1.4bn (4.7%)

    • Everybody elseP1.9bn (6.3%)

      *excludes sales of bonds and treasury bills of P1.95bn

      ** includes Bank of Botswana P1.3bn


Sources of tax revenue

Sources of tax revenue

  • Income Tax including;

    • Withholding Tax (PAYE)

    • Other Withholding Tax

    • Capital Gains Tax

  • Capital Transfer Tax

  • Value Added Tax

  • Customs & Excise (CCU)


But what about

But what about....

  • Alcohol levy

  • Fuel levies

  • Transfer duty

  • Training levy

  • ....any revenue raising legislation which has a provision allowing for transfer to the consolidated fund...


Direct taxes

Direct Taxes

  • Income Tax

    • Historically Botswana was source based (as opposed to residence / worldwide based)

    • Current scenario:

      • Companies – worldwide income

      • Individuals (expatriate) – source

      • Individuals (citizens) – worldwide

    • Where to from here...?

    • Challenges (and opportunities) – lack of Board of Adjudicator / High Court Decisions

    • Botswana is a “fertile” country for tax interpretation


Indirect taxes

Indirect Taxes

  • VAT commenced in July 2002 – based on “best practice” internationally

  • Classic “input / output” system – resulting in consumer bearing the tax

  • Self assessment system


The future

The future...

  • Anyone in receipt of income must register and submit tax returns;

  • Lifestyle audits;

  • Cross-referencing of information;

  • Simplified tax system?


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