By Forum staff writer
The Public Accounts Committee has raised serious concerns over withholding tax management at the Sierra Leone Civil Aviation Authority following findings contained in a report released this month.
According to the report, the Public Accounts Committee uncovered significant irregularities involving withholding taxes at the Sierra Leone Civil Aviation Authority, amounting to a combined total of Le710 million in old leones.
The Committee disclosed that withholding taxes valued at NLe454,795.28, equivalent to four hundred and fifty four million seven hundred and ninety five thousand old leones, were not deducted from payments made to suppliers. This failure, the PAC noted, represents a breach of tax administration requirements and undermines government revenue mobilisation efforts.
In addition, the report revealed that withholding taxes amounting to NLe255,354.10, or two hundred and fifty five million three hundred and fifty four thousand old leones, were deducted from supplier payments by the Authority. However, auditors were unable to verify whether these funds were subsequently remitted to the National Revenue Authority, as no supporting documentation was provided during the audit process.
The PAC expressed concern that the absence of proof of remittance raises questions about compliance with statutory tax obligations and the effectiveness of internal financial controls within the Authority. The Committee emphasised that withholding taxes deducted at source are public funds and must be promptly transferred to the NRA in accordance with existing financial regulations.
The report further noted that management of the SLCAA attributed the irregularities to financial constraints faced by the institution. In response, the Authority reportedly engaged the NRA and entered into an agreed payment plan aimed at settling the outstanding tax obligations.
While acknowledging the effort to address the issue through dialogue with the revenue authority, the PAC stressed that financial difficulties do not justify non compliance with tax laws. The Committee strongly advised the Director General and the management team of the SLCAA to strictly adhere to the payment schedule agreed with the NRA to avoid further sanctions or accumulation of penalties.
The PAC also called for improved financial oversight and stronger internal controls at the Authority to prevent a recurrence of similar issues. It urged the management to ensure that all future withholding taxes are correctly deducted, accurately recorded and promptly remitted to the NRA.
The Committee reaffirmed its commitment to holding public institutions accountable for the management of public resources and ensuring that revenue due to the state is fully protected in the interest of national development in Sierra Leone.
