3.4.2 Limited resources and capacity
Limited resources and capacity of Customs Services is a
reality and often means that Smuggling activities remain unchecked. Limited
resources and capacity can take the form of inadequate numbers of staff or
inadequate staff with the required skills and knowledge (e.g. audit and
investigation skills); poor infrastructure or systems and lack of adequate
funding. With the Customs Services unable to adequately carry out its role of
enforcement and taxpayer education. This often
translates into taxpayer perceptions that there is a low risk
of getting caught and/or there are minimal consequences of non-compliant
behaviour.
3.4.3 Smugglers are not named and published
Lack of publicity (naming and shaming) of smugglers is one of
the reasons for widespread smuggling in this country. Persons involved in
smuggling have not been described as criminals. In international tax
literature, smugglers are described as "white collar criminals". If they are
not named, they will never be de-motivated to commit smuggling. Even when a
smuggler is caught and punished for smuggling, he is not publicised. This has
encouraged smugglers continue smuggling just because they are not exposed to
the public.
3.4.4 Attitudes and perceptions towards taxation
Among some taxpayers, tax morality is low and there is a
strong culture to evade and avoid taxes and duties as a way to get rich quick.
In other words, there is no social disapproval or reprimand for commitment of
smuggling. Often, this is exacerbated by the evasive actions of friends,
relatives, co-workers and business colleagues. The perception of Smuggling as a
crime is also low. This is not the view of only general taxpayers but also
includes mem bers of the judiciary who are inclined to pass lenient fines and
sentences.
3.4.5 Corruption
Smuggling is made possible by the connivance of corrupt
elements of some Customs staff, clearing agents, traders and other
stakeholders. Almost all stages of Customs operation (i.e. assessment,
valuation, classification, warehousing, transhipment, etc) are prone to
fraudulent activities. Corruption can take many forms ranging from
systematic
where individuals act together, to systematically support
smuggling (usually driven by senior staff) to individual corruption, where
staff either have clients whom they facilitate illegally or where they simply
exploit their positions for financial gain. In addition, those involved in
corrupt activities continually seem to be very inventive in finding new
loopholes as some doors are being closed. Examples of corrupt activities
include: Speeding up of services (especially charging for faster clearance of
goods), charging for help to overcome complicated procedures and to qualify for
exemptions or duty free treatment, turning a blind eye to smuggling, and fraud
(for instance, the declaration of false values supported by fraudulent
invoices), aiding importers in understating income and value of goods, losing
files that contain evidence of smuggling, facilitating or organising the
smuggling of goods, receiving payment to complete customs entries for
importers.
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