Brief: In Cameroon, if you are caught carrying out any illegal or prohibited business activity, you would have to pay a 100% business license penalty for the length of time you have been engaged in the said activity.
In my last post, I elaborated on the business license contribution in Cameroon and how people still confuse it for income tax. I also promised to share with you some business license penalties or sanctions that come as a result of late payment, non-payment or failure to display the license. In addition to the aforementioned, there is one sanction that many people are not aware of. I am talking of those carrying out illegal or forbidden activity.
If you know you are carrying out an illegal or prohibited activity in Cameroon, note that you are liable to pay not just for the business license, but also an additional 100% penalty. If you may think that’s all, then you are mistaken. You will pay for the the number years you have been carrying out the activity. The fun about this is that you will not be issued the license. How does that make you feel?
A report on such illegal or prohibited activity is drawn up by a tax officer with the rank of a controller or any sworn-in law enforcement officer. This is then forwarded to the appropriate quarters. After all is done with the taxpayer, the law can then follow it’s course. Paying the business license when caught carrying out illegal or prohibited activities in Cameroon doesn’t exonerate from the hands of the law. It’s a two way thing
– it’s either the law enforcement officers hand you to the tax authorities to get what is due the state coffers or
– the tax authorities get what they are due and deliver you to the law enforcement officers. Either way, you will have to pay the license with a 100% penalty addition.
The list of illegal or prohibited activities are so many and its calculation is at the discretion of the tax administration. In the case of “Feymen” or scams, their known wealth is calculated and evaluated on the basis of their standard of living. Your luxury car can determine your class which maybe used by the tax office. Something like “you need to earn this amount of income to drive such a car or live in such a house”. From that, your annual turnover is determined and multiplied with the suspected number of years that you have been carrying out the said activity. This serves as the basis for calculation with a 100% business license penalty slammed on it.
It should be noted that measures concerning the impounding of vehicles or closure of businesses are still being carried out by the tax office. In the case where the taxpayer fails to pay the outstanding amount within the period provided, the business is immediately sealed with no prejudice elsewhere for the provided penalties.
For those having a transport business license, the authority in charge of carrying out the control is empowered to impound the vehicle concerned to be released only upon payment of the full amount due.
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This content has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, accounting or legal advice. You need to consult your own tax, accounting or legal advisors before engaging in any transaction.