Africa-Press – Namibia. THE Namibian Institute of Mining and Technology (Nimt) is facing tax troubles after it was discovered that its housing scheme is seemingly not registered with the Namibia Revenue Authority (Namra).
Normally, a registered housing scheme allows for only two-thirds of the housing allowance paid to employees to be taxed, with one-third being tax-free.
Nimt reportedly treats the housing allowance paid to its employees as a registered scheme, however, without a registration number, Namra treats it as normal income and fully taxes it.
This reportedly caused problems with tax returns for the past five years, as the new taxation system, the Integrated Tax Administration System (Itas), requires a housing allowance registration number.
“Your tax returns are hanging just there at Namra because Nimt cannot explain the registration of its housing scheme,” a source claimed.
The source also urged Nimt employees to confirm their tax assessments from 2020 to 2022 with Namra, and to enquire about how their housing was assessed.
He suggested that if the tax returns were assessed and the housing was not fully taxed, the employees may be personally responsible for the tax balance.
When approached for comment, Nimt executive director Ralph Bussel said the institute is in contact with Namra and has assured its employees that they will not be penalised.
Bussel said Nimt registered the housing scheme during 1997/1998, and at that stage Nimt obtained a confirmation letter that the housing scheme was approved by Inland Revenue.
“It seems that registration certificates and registration numbers were only issued by Inland Revenue at a later stage. The fact that Nimt had not been allocated a housing scheme registration number came to light with continuous updating of Namra’s Itas, where the housing scheme number is required on the system,” he noted.
He said that once the housing scheme matter is resolved, the assessment periods will be reopened for the Nimt staff members and they will be reassessed.
“Nimt will inform all its staff members accordingly,” he said.
All staff members benefit from the housing scheme, except those who stay at the Nimt’s trainee dormitories, who benefit from free housing and municipal services. He said the housing allowance is taxed in accordance with the requirements of the Income Tax Act.
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