19 Aug 2025

About 80 per cent of small and medium enterprises (SMMEs) incur penalties due to late or non-filing of tax returns.

Speaking during a one-day women empowerment workshop in Francistown recently, Absa Bank Botswana’s tax manager, Mr Oreeditse Matheope underscored the importance of meeting tax returns filling deadlines, not just to evade penalties, but to establish credibility and discipline within their financial practices.

He pointed out that companies facing delisting often had a history of tax payment defaults, urging business owners to prioritise maintaining valid tax clearance certificates.

He further pointed out that higher tax contribution was a reflection of a thriving business, rather than a cost to be avoided.

“Many business owners attempt to evade tax, mistakenly believing it to be a drain on their resources. They overlook the fact that these taxes are public funds essential for driving national development,” he said  In light of Botswana’s current financial challenges, he asserted that tax revenue played a pivotal role in the country’s recovery efforts.  He also stressed the necessity of diligent record keeping for business survival.

Mr Matheope also advised against mixing business funds with personal expenses, highlighting how some owners might use business capital to cover family groceries.  This practice, he said, undermined financial discipline and accountability.

In addition to tax matters, Absa’s legal advisor, Mr Keletso Tebele, encouraged participants to familiarise themselves with relevant laws.

He noted that legislation such as the Copyright Act was designed to protect their business interests, though many owners often overlooked such protections.

“The Copyright Act provides both moral and economic rights that you hold as creators,” he explained, urging those who lacked understanding to seek the expertise of legal professionals in drafting their copyright frameworks.

Mr Tebele also covered other legislations pertinent to business owners, including regulations on personal data and the newly implemented family responsibility leave within the Trade and Dispute Act. ENDS