The Domestic Taxes Department (DTD) was formed in 2011 with the main objective of simplifying tax administration and making it easier for taxpayers to comply with their tax obligations. Over the last few years, the NRA modernization programme has focused on effective “Customer Service Delivery” and the formation of the DTD was instrumental to that principle.

Since the main focus of DTD is “Customer Service Delivery”, the department is structured along functional lines instead of tax type under the old system.

Each operational area has four main functions:

1. Taxpayer Registration and Services
2. Returns and Payment Processing
3. Compliance and Debt Enforcement
4. Audit and Assessment

These functions ensure that we can provide better in-house services to our taxpayers in terms of taxpayer services and returns processing; but also ensure that compliance increases under our self-assessment system by monitoring debt and filings.

In forming DTD, both the administration of Income Tax and Goods and Services Tax (GST) were combined. The advantage of this combination for the customer was that it made it easier for them to comply as they only had to deal with one tax office for all their tax issues; and for the NRA it made us more effective as we will continue to have a holistic view of the taxpayer.

The DTD is segmented into different tax offices. The Large Taxpayers Office (LTO) deals with the largest taxpayers and mainly includes Multinationals, Extractive & Mining Operators, Telecommunication Companies, Banking & Finance Players, Large Importers and Major Contractors. We strive to provide first class services for all our large taxpayers as they are small in number but contribute more than 80% of revenue generated.

The other operational tax office under DTD is the Small and Medium Taxpayers Office (SMTO) that manages all other taxpayers that are not large taxpayers. The SMTO has its SMTOHQ in Freetown that deals with Medium Taxpayers—three tax districts in Freetown (Freetown East, Freetown Central and Freetown West) that manage small and micro taxpayers; and four provincial offices in Bo, Makeni, Kono and Kenema servicing taxpayers in those regions.

There is also the Design and Monitoring (D & M) Unit of the DTD. D & M prepares all procedures, practice notes, forms, guidance etc. for operations. They also monitor operations to ensure that procedures are similarly implemented across operations.

The HR Department provides personnel and logistics support to operations and support departments by recruiting, developing and retaining competent human capital. It is also responsible for performance management and the introduction of compensation schemes for high performing staff. This department thus plays a major role in helping the Authority meet revenue aspirations and provide quality service to its customers.

The HR Department further carries out the following functions:

• Prepares technical plans and programs for the development and implementation of office policies, procedures and guidelines in all areas of Human Resource Management/Development.
• Develops /recommends programs that foster better employee relations, staff welfare benefits, career development, staff discipline and other related aspects.
• Provides support to the various organizational units on staff related issues and technical/professional advices through collaboration with other institutions to implement capacity building programs.
• Enforces/monitors the implementation of Human Resource policies and procedures across the Authority and forward regular report to Management and Board for appropriate consideration
• Collaborates with other comparator agencies/institutions and government in respect to H R related matters.
• Processes personnel transactions, administers salaries/payroll and maintains personnel records in the Authority

The Finance and Budget Department is responsible for the financial management of the Authority. It controls budget spending and ensures that the institution’s liquidity position is secured. This department further aids the flow of revenues to the government and accounted for all revenues being collected and transferred to the Consolidated Fund.

Functions of the Finance & Budget Department Includes:

• Collection of revenue for the NRA which is deposited in the Consolidated Revenue Fund (CRF).
• Revenue reconciliation with Commercial banks.
• Participation at Cash Management meetings.
• Issuance of securitized receipts to outstations to ensure accountability of funds.

The Monitoring Research and Planning department (MRP) is charged with the responsibility of conducting revenue enhancement research, monitoring all reform projects and revenue collection processes and procedures as well as leading the planning activities of the Authority.

Functions of the MRP Department include:

• Conducting research to enhance domestic revenue collection.
• Monitoring of key performance indicators & operational procedures of the Authority.
• Leading the planning process of the Authority.
• Processing duty free concession applications and advising Management based on regulations.
• Collecting, collating and regularly updating tax and non-tax revenue data base from which reports and publications are produced.
• Preparing revenue reports and contributing to the general publications of the Authority.
• Responding to data/ information requests on Domestic Revenue and Economic Performance by Development partners—MDAs, ECOWAS, DFID. IMF and World Bank. 
• Monitoring and evaluating bilateral and multilateral agreements (such as the ECOWAS Common External Tariff) relating to taxes and customs duties.

• Representing the Authority in meetings as scheduled by the Director and or the Commissioner-General’s office.

Revenue Intelligence and Investigation Units

To be recognised as the premier provider of quality and timely tax intelligence, investigation and risk management service that fosters optimum revenue collection within the National Revenue Authority.

To enhance taxpayer voluntary compliance by detection and proactive investigation of tax evasion whilst maintaining confidence in the integrity of Sierra Leone’s tax system by a dedicated and professional workforce, this in turn will maximize revenue collection.

To enhance revenue collection by the authority through investigation of all detected cases of tax fraud/evasion and apply all the preventive measures at the disposal of the respective tax legislation.

Functions:

• To support effectiveness and efficiency of Revenue departments audit programs through provision of intelligence summaries and risk profiling.
• To support the Revenue departments through providing specialized investigative services into tax frauds and crimes, determining the method of operation, identifying the sponsors or perpetrators, and prosecuting them to enhance compliance.
• To detect areas of willful negligence and graft by NRA staff and make recommendation, after full investigations, for necessary disciplinary action.

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

Sierra Leone Value Chain Analysis Narrative Report