imageSão Tomé and Príncipe | Decree-Law No. 18/2016, of 17 November 2016

Extension of tax base to reduce tax fraud and tax evasion

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GOVERNMENT Decree-Law No. 18/2016 Facing the need to boost the process of tax revenue collection by broadening the tax base, with the aim, on the one hand, of reducing the risk of tax fraud and evasion and increasing the level of revenue collection and, on the other, of achieving greater tax justice by making all taxpayers pay taxes to the extent of their ability to pay; Whereas, in order to combat fraud and tax evasion more effectively, on the one hand, and, on the other, to create the conditions for including in the tax base, alongside traditional economic activities, new forms of income-generating activities, such as the operation of greengrocery stores, traditional centers for the manufacture of drinks and medicines, itinerant sale of clothing, food and other, sales of trinkets and knick-knacks, and considering that the operation of such activities requires a proper licensing by the competent authorities, the Tax Directorate must avail itself of the cooperation of the licensing entities which, by the nature of the services they offer, are in a position to provide privileged information to the tax administration; Facing the need to give legal sustainability to such a procedure so that public services can legitimately collect, provide, and demand certain information of fiscal interest; Thus, it shall be therefore necessary to legislate in accordance with legislative authorization No. 5 published in Official Gazette [Diário da República] No. 84, of 15 July 2016, granted by the National Assembly; Accordingly, in the use of the powers granted by subparagraph (d) of Article 111 of the Constitution of the Republic, the Government hereby decrees as follows: