RSL strengthens tax capacity

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RSL strengthens tax capacity
RSL strengthens tax capacity

Africa-Press – Lesotho. Revenue Services Lesotho (RSL), in collaboration with the United Nations Development Programme (UNDP) and the Organisation for Economic Co-operation and Development (OECD), successfully hosted a technical assistance mission under the Tax Inspectors Without Borders (TIWB) initiative from 2 to 6 June, 2025.

The week-long mission, led by TIWB expert Mr. Henry Mundeya, focused on strengthening Lesotho’s capacity in handling complex transfer pricing issues.

These issues often arise from cross-border transactions by multinational enterprises (MNEs), and effective management is critical in curbing tax base erosion and ensuring that Lesotho receives its optimal share of tax revenues.

One of the mission’s core objectives was to deliver practical, hands-on technical support to RSL’s audit teams.

Through detailed casework and collaborative sessions, auditors were equipped with the skills and knowledge necessary to effectively review and resolve active transfer pricing audit cases. This initiative plays a vital role in building internal capacity and ensuring that RSL’s audit practices are grounded in global standards.

Another key focus of the mission was the comprehensive review of RSL’s Specialised Sectors Audit Manual. Mr. Mundeya and his team provided critical insights to help align the manual with international norms, ensuring that RSL’s methodologies remain up-to-date and effective.

This alignment is essential to creating a robust legal and procedural framework for tackling tax challenges associated with MNEs.

In addition to direct audit support, the mission prioritised the development of improved risk assessment procedures.

By enhancing how cases are selected and evaluated, RSL aims to maximise the efficiency and accuracy of its audits. Strengthened risk assessment mechanisms will enable the authority to better identify high-risk transactions and allocate resources more strategically.

This collaboration marks another step forward in Lesotho’s ongoing efforts to enhance domestic resource mobilisation and improve tax compliance. Through initiatives like TIWB, RSL demonstrates its commitment to transparency, fairness, and accountability in the tax system.

The technical assistance mission underscores the importance of international cooperation in building the capacity of tax authorities in developing countries. With continued support from UNDP, OECD, and TIWB, Lesotho is better positioned to safeguard its tax base and promote sustainable economic development.

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