Tax Trouble at Trustco: Court Backs NamRA in N$136 Million VAT Clash

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A recent High Court ruling has delivered a firm message to businesses with tax disputes: you’ll need more than a strong opinion to beat the taxman.

Trustco Group Holdings took the Namibia Revenue Agency (NamRA) to court over what it claimed were N$136 million in VAT credits. The company argued that these should be used to reduce interest on its unpaid taxes. But NamRA wasn’t buying it—and neither was the court.

The tax agency had demanded payment of outstanding tax liabilities going back to 2019, warning Trustco to pay up by May 2023. Trustco challenged this demand, calling it unconstitutional and accusing NamRA of being unfair.

But the court wasn’t convinced. It found that NamRA had followed proper procedure, gave Trustco enough time to respond, and made no legal errors. Notably, Trustco’s overall tax bill had ballooned to nearly N$593 million by the end of 2023—raising eyebrows and urgency.

In a final blow, Trustco’s attempt to have sections of the Income Tax and VAT Acts declared unconstitutional was also thrown out.

Why it matters for accountants

This case is a powerful reminder to keep tax affairs in order, ensure proper recordkeeping for VAT credits, and avoid relying on informal “understandings” with revenue authorities. It also signals that NamRA is stepping up enforcement—and the courts are backing them.

📌 Key takeaway: If your client has a tax dispute, focus on documented evidence, legal process, and proactive communication with NamRA—court battles are costly and rarely go well without it.

Source: article in Windhoek Observer