Civil Aviation Authority Flagged for Le710 Million Withholding-Tax Anomalies
By: James Kamara-Manneh
The Public Accounts Committee (PAC) has uncovered significant withholding tax irregularities at the Sierra Leone Civil Aviation Authority (SLCAA), involving a combined total of over Le710 million in unaccounted and unremitted taxes.
According to the PAC report published in February 2016, withholding taxes amounting to NLe454,795.28 (four hundred and fifty-four million, seven hundred and ninety-five thousand Old Leones) were not deducted from payments made to suppliers, contrary to established financial regulations.
In addition, the Committee discovered that NLe255,354.10 (two hundred and fifty-five million, three hundred and fifty-four thousand Old Leones) had been deducted from supplier payments as withholding tax but that no evidence of remittance to the National Revenue Authority (NRA) was provided during audit inspection.
The PAC report noted that the anomalies raise concerns about compliance with public financial management rules and tax laws governing government institutions.
Management of the SLCAA informed the Committee that due to financial constraints, the Authority had engaged the NRA and agreed on a structured payment plan to settle the outstanding tax liabilities.
However, the PAC strongly advised the Director General and the SLCAA management team to strictly adhere to the agreed payment schedule and ensure full compliance with tax regulations going forward.
The Committee emphasized the need for improved financial discipline and accountability within public institutions to safeguard public funds and maintain transparency in revenue administration.
