The Extractive Industry Revenue Unit (EIRU) was established by the National Revenue Authority (NRA) to manage the handling of all extractive-industry related taxes. To date, the administration of extractive industry has been the responsibility of the large tax office of the Domestic Tax Department (DTD). Because of the need for specialized knowledge of the sector, this responsibility was shifted to the EIRU. The Unit facilitates the assessment, collection, audit and timely recovery of revenue from the extractive industry.
SPECIFIC OBJECTIVES OF THE EIRU
1. Maximizing revenues from the extractive industry
Once a tax base and tax rate are established in line with the tax legislation and mining lease agreements, we focus on increasing voluntary compliance through:
• establishing a professional and trust-based relationship with EI taxpayers.
• educating taxpayers on the tax system, laws, policies and regulations.
2 . Developing and implementing an extractive industry strategy
Governance of the extractive industry sector goes far beyond issues of taxation and revenue collection. Among others, it incorporates environmental issues, the negotiating of mining lease agreements, and the relationships with other governmental and non-governmental agencies. To achieve the main objective of revenue maximization, we must navigate through these entities and issues.
3. Improving compliance in the extractive industry
We aim to ensure compliance based on the four pillars of compliance:
• Correct and timely registration of tax-payers
• Systematic filing of information
• Reporting of complete and accurate information
• Timely payment of tax obligations
Our Key Client Manager will improve the access to NRA information and services, especially for our largest clients. We will additionally publish guidance on various topics related to the tax system including a clear interpretation of the law.
4. Establishing an extractive industry forum
Our forum will engage stakeholders across the extractive industry including the chamber of mines. The forum will be a away to discuss concerns, share information about administrative developments and to facilitate improvement and arbitration.
5. Promoting collaboration with extractive-industry-related stakeholders
We collaborate with relevant government ministries and agencies to discuss technical issues relating to the industry for better understanding and the subsequent improvement of the administration of taxes. A task force has already been established to share information across various agencies with the view of maximizing revenue.
6. Monitoring revenue mobilization from the extractive industry sector
Our unit will forecast extractive industry tax revenues. This will ensure early reaction to changes in the revenue patterns and a better management of expectations. It will also allow us to understand compliance patterns.
7. Providing technical input on policies
We have a representative at the Minerals Advisory Board and take active part in the issuance of mining licenses. We recommend legislative changes in order to improve tax administration and compliance.
8. Auditing of extractive industry companies
We will develop and implement a compliance program to ensure that extractive companies pay the appropriate amount of tax. In the event were this does not happen, we will investigate and audit these taxpayers
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Sierra Leone Extractive Industry Transparency Initiative Reconciliation Report