The Namibia Revenue Agency (NamRA) has reiterated its call for taxpayers to comply with tax obligations or risk enforcement measures, including the appointment of third-party agents to collect outstanding debts.

This follows a landmark High Court ruling in Trustco Group Holdings Ltd. v. Namibia Revenue Agency, which upheld NamRA's actions and affirmed the constitutionality of section 91 of the Income Tax Act.

The case, heard by a full bench of the High Court, was centred on NamRA's demand for Trustco to pay N$593 million in outstanding taxes and its decision to appoint First National Bank as an agent to recover funds from Trustco's bank accounts. 

The court ruled in favour of NamRA, confirming that the tax authority was within its rights to enforce collection without giving prior notice to the taxpayer.

At the heart of the judgement lies the principle of "pay now, argue later", which the court described as entrenched in Namibia's tax system. 

The judges emphasised that taxpayers cannot delay payment by launching objections or litigation. 

According to the ruling, the applicants are not entitled to be heard before the tax authority took action to collect the tax due and payable.

Trustco challenged the legality of NamRA's actions on multiple grounds, including alleged violations of their constitutional rights to property, access to courts, and administrative justice. 

It also sought to have section 91 declared unconstitutional, arguing that it allowed NamRA to act without first hearing the taxpayer in default. 

However, the court dismissed these arguments, finding that the urgency of securing tax revenues justifies swift action, especially in situations where assets may be dissipated.

NamRA's rejection of Trustco's proposal to reduce its monthly repayment from N$2 million to N$1.5 million and its demand that each of Trustco's defaulting companies pay 30% of capital tax debt within seven days were also upheld. 

The court noted that Trustco had failed to honour its previous payment arrangement, and thus NamRA was not functus officio, meaning "legally barred from revising its decision".

The court also confirmed that NamRA officials have the authority to withdraw or amend decisions within two years, in line with tax legislation, further weakening Trustco's claim of administrative finality.

In response to the judgement, NamRA urged all taxpayers with outstanding liabilities to settle their debts or formalise payment plans to avoid drastic measures.