Declaration of Taxes and Consequences of not Paying Taxes

Question 1

Explain the process of tax declaration in Cameroon.

Answer 1

• Anyone liable to pay taxes has to file for a taxation form within 15 days of starting a business, once this is done the taxation officials will hand them a taxpayer number-or card. Once they receive this card/number they shall be required to start paying taxes from that moment henceforth.
• Every taxpayer is required to file for tax returns on or before the 15th of the next month for the previous month, This is done using a taxation form provided by taxation officials along with any other required documents.
• Failure to file for tax returns shall lead to a reminder by tax officials and the taxpayer shall have 15 days as a deadline to file for their taxes, failure to do so shall lead to them facing the consequences of tax evasion.

Question 2

What is tax evasion?

Answer 2

It is the failure to pay or the underpayment of tax by a taxpayer.

Question 3

What are the consequences of tax evasion?

Answer 3

Mnemonic: So Fred Calls Idris Every Imprisonment
S - Seizure and sale of property
F - Freezing of accounts
C - Closure of business
I - Impoundment of movable property
E - Exemption from public contracts
I - Imprisonment

Question 4

How is the seizure and sale of property a consequence of tax evasion?

Answer 4

The law provides taxation officials the power to seize and auction the property of any taxpayer for fails to pay their taxes.

Question 5

How is the Freezing of accounts a punishment for tax evasion?

Answer 5

The law provides taxation officials and the court the power to freeze the business accounts of any tax payer that fails to pay their taxes, once this is done said taxpayer can only deposit money into the account but cannot withdraw money from it.

Question 6

How is the closure of business a consequence for tax evasion?

Answer 6

Taxation officials by law are provided the power to seal off the business premises of any taxpayer who fails to lay thier taxes, it can only be unsealed by a competent taxation official once the taxpayer pays thier taxes.

Question 7

How is the Impoundment of movable property a consequence of tax evasion?

Answer 7

Taxation officials are provided power by law, to impound the property of taxpayers who fails to pay thier taxes.

Question 8

How is the exemption from public contracts a consequence of tax evasion?

Answer 8

The Cameroonian public contract code states that contractors who fails to pay thier taxes shall not be awarded public contracts.

Question 9

How is imprisonment a consequence of tax evasion?

Answer 9

The Cameroonian penal code, provides two punishments for tax evasion including:
- 5 to 15 years of imprisonment for any tax payer found guilty of tax evasion

• 1month to 3years of imprisonment for tax payers that resist taxation officials or prevent them from entering thier business premises.