A Critical Analysis of Effectiveness of Tax Offences Control Mechanisms Under Rwandan Law

I.3. Main tax offences under Rwandan tax law

I.3.1 Consumption Tax Offences

According to consumption tax law on some imports and locally manufactured products, the following are some of the offences that may be committed by Oil products dears:

· Failure to allow the Authority easy access to all premises and petrol stations for evaluation and inspection purposes;

· Failure to make a declaration to the Authority before any petrol station is started up so that its premises may be inspected first;

· Failure to affix a standards certificate as required by an authorized officer;

· Failure to present any document providing details as to what is required by the Authority's inspection;

· Failure to report beforehand to the Authority and in writing any changes, damage, increase or decrease of tanks and pumps;

· Failure to make a declaration to the Authority as regards any premise used for the sale oil products;

· Failure to have underground tanks be tested;

· Failure to have pumps be inspected and present their related standards certificate;

· Failure to store and sell oil products that are contained in tested underground tanks or any other tested types of store;

· Failure to have standards certificates for meters of pumps meant for oil products selling;

· Failure to allow easy access for experts or those representing the Agency endowed with expertise in testing whether underground tanks, pumps or meters respect standards;

· Failure to allow easy access to an authorized officer sent by the Commissioner General to carry out relevant inspection in a given petrol station;

· Failure to authorize any qualified person to carry out any activity or check whether legal provisions are respected.

I.3.2 Income Tax offences

According to Law on Tax Procedures^18(*) the following are provided as VAT offences:

· Failure to pay tax within the period set forth by the law;

· Failure file a tax declaration on time;

· Failure to file a withholding declaration on time;

· Failure to withhold tax;

· Failure to provide proofs required by the Tax Administration;

· Failure to cooperate with a tax audit;

· communicate on time the capacity or appointment the taxpayer has been given;

· Failure to register as described by article 10 of this law;

· comply with articles 12, 13 and 15 of this Law;

· Failure to pay on time the profit tax advance.

I.3.3 Value Added Tax violations

The following administrative fines are imposed to persons who do not comply with provisions of Value Added Tax:

· Operation without VAT registration where VAT registration is required,

· Incorrect issuance of a VAT invoice resulting in a decrease in the amount of VAT payable or in an increase of the VAT input credit or in the event of the failure to issue a VAT invoice

· Issuing of a VAT invoice by a person who is not registered for VAT

· Failure to pay tax withheld

· Aiding, abetting, obstructing or attempts to obstruct the activities or duties of the Tax Administration in the exercise of its powers.

* 18 Law n° 25/2005 of 04/12/2005 on tax procedures