Armed with credit information from transUnion, the country’s credit reference center, Rwanda Revenue Authority-RRA will be able to recover tax arrears as well as track down defaulters.
In an agreement signed between the tax body and TransUnion on Wednesday, the tax body will obtain credit information from the TransUnion and its subscribers which will act as a basis for recovering the taxes owed by a particular taxpayer.
“Some of the bank information for taxpayers has not been traceable due to lack of a systematic tracking process,” said Richard Tusabe, commissioner general of Rwanda Revenue Authority.
The TransUnion, formerly Credit reference Bureau-CRB keeps all credit information of bankable population in the country.
Aimable Nkuranga, country manager, TransUnion said that the agreement will help the tax body to understand the causes of defaulting.
“The move should not be looked at as a negative deal-the other side of deal it will allow our subscribers to negotiate to pay their taxes in installments,” he noted.
He adds, “The tax administration, however is to maintain adequate security measures to protect the integrity and security of any data received”
With such information shared between banks, bad loans moved to 5.9 percent in the first half of 2015 from 6.0 percent recorded in last quarter of 2014, according to statistics from Central bank.
There is optimism, with such initiatives that the tax body is likely to increase its revenue collections. In the year 2014/2015 results, the body recorded short fall collecting Rwf 871.4 billion in both tax and non-tax below the targeted Rwf 888.2 billion.