Africa-Press – Botswana. Submitting accurate tax returns and properly declaring income can help Small, Micro and Medium Enterprises (SMMEs) avoid legal complications from incorrect filings.
The Local Enterprise Authority (LEA) Maun branch manager, Mr Outlwile Ebutswe, stated during a LEA training session in Maun on Thursday that it was important to sensitise SMMEs about the importance of tax compliance, in order to strengthen and boost their businesses.
Mr Ebutswe said this was in recognition of the minimal contribution of SMMEs to tax revenue, despite the critical role taxation played in driving economic growth.
This initiative aims to empower small businesses to fulfill their tax obligations responsibly while supporting the country’s development agenda, he said.
Botswana Unified Revenue Service (BURS), senior revenue officer, Mr Gaone Motsumi warned participants against under-declaring income and turnover in an attempt to reduce tax liability.
“Some declare less income to avoid paying tax, but later records expose their dishonesty. Once BURS realises there is undeclared income, those individuals face heavy penalties and interest and consequently lose millions in tax unnecessarily,” he said.
He also warned that avoiding tax returns was a criminal offence which could land one in prison once it was discovered that they had not been paying tax when they were eligible.
Mr Motsumi emphasised that taxation was key to national development and reminding participants that anyone who earned an income above P48 000 annually, must register for income tax.
He further stated that all businesses regardless of whether they made a profit or not must, register for tax and additionally, anyone who withheld tax on payments such as rent, farming income, director’s fees, or contract payments must also register and would be issued a Taxpayer Identification Number (TIN).
The training also shed light on the importance of proper loss reporting, meaning that losses incurred in a tax year can be carried forward for up to five years and used to offset future profits. This provision helps businesses manage their tax liabilities more effectively, providing relief during challenging periods while encouraging long-term financial planning and compliance.
A senior revenue officer from BURS in Maun, Mr Lazarus Kgolagano urged business owners not to rely only on consultants for record-keeping but to engage dedicated bookkeepers and maintain their own files.
“Avoid relying solely on consultants to keep your records, rather engage professional bookkeepers and always keep your own files. We have had cases where accountants disappeared with clients’ records, leaving them unable to file their tax returns,” warned Mr Kgolagano.
DM Environmental accountant, Ms Abaleng Senwedi, shared that many people tried various tricks to avoid paying tax, but training enlightened her that BURS could audit records from years ago and uncover any schemes.
She noted, “Many hide expenses under directors’ costs thinking they will easily get away, but being truthful is the real gold in any business,” said Ms Senwedi.
Meanwhile, tax compliance is not merely a statutory duty but a strategic business practice that contributes to national development and economic stability hence businesses must embrace their tax responsibilities, not only to avoid legal penalties, but to position themselves for future growth opportunities. By paying taxes honestly and on time, businesses help build the infrastructure and services that sustain their own success and the prosperity of the entire country.
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