Are there adequate administrative structures in place through which taxi operators and prostitutes can be taxed?

Abstract

Abstract provided by author:

The purpose of the present research paper is to critically analyse Namibia's current Income tax legislation, more importantly, to see if there are adequate structures provided for, whereby Taxi Operators and Prostitutes can be taxed. The impetus for the research paper is the fact that this group of individuals has for a long time bypassed paying income tax. This merely because the liability of paying tax is based on the definition of gross income in terms of the Income Tax Amendment Act. Although the said Act targets all those individuals with income, it is submitted that it is the lack of reachable administrative structures, which has contributed to the non - taxing of Taxi Operators and Prostitutes. Since the Commissioner of Inland Revenue is facing the obstacle of accessibility, it is neither possible to serve income assessments on these individuals nor to have a computation of their income in order to do assessments

The aim of this research paper is to revisit the Income Tax Act 24 of 1981 and the Amendments, firstly to look at how the relevant provisions deal with the question of Income Tax. In the first part of the research paper the historical development and background of Namibia's Income Tax legislation will be looked at. Secondly, the status quo of prostitutes and taxi operators in Namibia and other countries will be looked at. Thirdly, an analysis of the practical difficulty faced by the Commissioner by asking the question, why these individuals are not taxed? This will be discovered by means of interviews with the Commissioner of Inland Revenue and with the Legal Assistance Centre. Then an attempt will be made in order to find ways to establish administrative structures, in order to bring the prostitutes and taxi operators within the reach of the Commissioner's arm