The Lesotho Revenue Authority (LRA) is once again extending an invitation to clients, who, for one reason or the other, failed to meet their tax obligations in the past to make use of the Voluntary Disclosure Programme (VDP), an initiative established solely to afford such clients, an opportunity to regularise their tax affairs.
The VDP is intended to provide an opportunity for businesses and individuals to voluntarily come forward and regularize their tax affairs under Income Tax and VAT Laws. The LRA is committed to granting amnesty on additional taxes and penalties under the VDP for people who will come forward voluntarily and make full and honest disclosure of their tax transgressions.
The VDP covers all tax types excluding the customs duties and clients are expected to voluntarily come forward and declare any tax non-compliance fully and honestly; and pay all taxes due within agreed time. There are quite number of benefits under the VDP for which Clients stand to gain and these include:
- Amnesty on additional taxes and penalties;
- Non-pursuance of prosecution upon satisfaction of terms and conditions that are applicable; and
- Opportunity to regularise tax affairs and have good standing with the LRA.
The sources of income that may be disclosed under VDP include business income, income generated outside Lesotho, employment income, Property income, Interest from investments, capital gains, commercial farming income or any other income.
After the disclosure, clients are expected to pay the taxes due and clients are furthermore encouraged to make use of the Payment Referencing Portal accessible on the LRA website to generate a reference that will allocate their payments to the correct tax type and correct payment period.
