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Hundreds of unregistered small businesses are yet to pay tax

Radio & TV Tonga, Nuku’alofa ,31/07/2018

The Ministry of Revenue has identified more than three hundred unregistered businesses in the Nuku’alofa Area and they are yet to pay tax to the Government.

Senior Officer from the Ministry – Taniela Sila says these businesses were identified during an operation by the Ministry’s task force who is currently currently collecting data from the public based in the Nuku’alofa Area.

Most of the unregistered businesses are private construction companies and rental businesses.

Sila says the construction businesses include, private builders and rental cars.

The main concern from the Ministry is that many small businesses are earning huge amount money from their services but they are not paying any tax.

For instance, some rental houses in the Nuku’alofa, the rental fees are paid directly to overseas accounts with tax exemption.

The operation is aiming to collect as much information on businesses as possible and categorize them according to the amount of tax that they should be paid.

This operation is also an opportunity for the staff of the Ministry to explain to the people first-hand on how they operate.

Small businesses are required to pay tax starting from $100 pa’anga annually depending on how much money they earn a year.

The operation started two weeks ago and has been conducted by more than 10 staff.

Data is collected through one-on- one interview with the people.

© Radio and Television Tonga News