The Gambia Revenue Authority (GRA) has issued a firm ultimatum to employers and VAT-registered businesses, demanding immediate compliance with tax remittance rules or face prosecution, penalties, and personal liability.
In a strongly worded press release dated March 23, 2026, the GRA expressed serious concern over persistent non-compliance, stating that some employers are deducting Pay As You Earn (PAYE) from employees’ salaries but failing to remit the funds within the mandatory 15-day period after the end of each month. Likewise, certain VAT-registered entities are collecting Value Added Tax from customers but not remitting it to the authority as required by the Income and Value Added Tax Act 2012.
The GRA reminded both groups that they act only as agents of the government: PAYE deductions and VAT collections are public revenue held in trust, not business funds that can be retained or used for any other purpose.
“Employers and VAT registrants who withhold these amounts are committing a serious offence,” the statement read. It cited Section 95(1) of the Act, which makes any person who fails to remit withheld tax personally liable for the full amount.
Consequences for non-compliance include criminal prosecution, imposition of statutory penalties and interest, and personal financial responsibility for directors, managers, or other responsible officers.
The authority urged all defaulting parties to “immediately regularize their tax affairs” and cease further violations. It also announced plans for a nationwide verification exercise in the coming months to identify and take enforcement action against non-compliant employers and businesses.
The GRA emphasized that timely remittance of PAYE and VAT is essential to supporting national development and reiterated its commitment to promoting voluntary compliance while promising firm action against persistent defaulters.
Taxpayers needing assistance or clarification were encouraged to contact the GRA through its official channels.
The release comes as the authority continues aggressive domestic revenue mobilization efforts in 2026, following strong performance in the previous year and ongoing reforms aimed at improving tax administration and closing compliance gaps.
Under the Income and Value Added Tax Act 2012, employers act as agents of the government in collecting PAYE. They must remit the deducted amounts to the Commissioner General within 15 days after the end of the month in which the deductions are made. The GRA emphasized that these funds do not belong to employers and cannot be retained for any purpose.
For VAT registrants, the authority stressed that collected VAT represents public revenue held in trust—not business income. Businesses are required to account for and remit these amounts according to statutory deadlines.
The GRA advised all defaulting employers and businesses to regularize their tax affairs and to cease further violations urgently. It announced plans for a nationwide verification exercise in the coming months to identify non-compliant parties, with appropriate enforcement measures to follow.
This renewed enforcement push aligns with the GRA’s broader mandate to safeguard domestic revenue and promote voluntary compliance, especially as the authority targets significant revenue collection for 2026. Recent reports indicate the GRA aims to mobilize around D27 billion or more in domestic revenue this year, following strong performance in 2025 and ongoing tax modernization efforts, including proposals for mandatory e-invoicing to curb fraud and improve collection efficiency.
The authority reiterated its commitment to supporting taxpayers through education and assistance while warning that persistent defaulters will face consequences. Taxpayers seeking guidance are encouraged to contact the GRA via its official channels.
The GRA’s statement underscores the critical role of timely PAYE and VAT remittances in funding national development priorities. Employers and businesses are urged to act promptly to avoid legal repercussions and contribute to The Gambia’s fiscal stability.
