April 23, 2010

Should Successful Companies in Somaliland Pay Their Share of The Taxes……….Continued

After a recent article by this author decrying the failure of several successful companies in Somaliland to pay decent taxes after reporting staggering profits, the feedback from the article has been very encouraging. The feedback fell into three general categories; those who agreed with the author that Somaliland companies are not paying their fair share of taxes, and the government and lawmakers need to do more to make sure that these companies obey the financial regulations in Somaliland; those who opposed the author´s arguments and stated that Somaliland companies, such as Dahabshiil and Somtel are international entities and therefore should not pay taxes in Somaliland.

By the way, the article was entitled “Can Dahabshiil Be Considered A Somaliland Company Anymore” and finally, those in the third category, a smaller minority, who were just incoherent and made weak arguments.

But, returning to the main thesis of the previous article, the failure of Somaliland´s most successful companies, such as Dahabshiil, Somtel, Qaran Express, and several others, to pay the appropriate amount taxes, is crippling the nation´s ability to develop.

For the last twenty years Somaliland has survived and thrived mainly on remittances from its wonderful citizens across the globe, and every single one of the companies mentioned in the above paragraph has benefited greatly from this large injection of cash into the country. But, it is now time for these companies to invest some of their record profits back into the country.

Several responders to the previous article pointed out some of the charitable work carried out by these Somaliland companies, activities such as building bridges, the odd hospital ward, etc. That is well and good, but if these companies paid regular and appropriate taxes, the government would be able to use the funds to rehabilitate and improve the infrastructure of the nation, such as, roads, hospitals, schools, etc which will in turn create employment for many of Somaliland´s unemployed which will in turn create more customers with spending powers for these companies.

The people of Somaliland both at home and abroad have contributed mightily to the nation´s development and progress, from the ashes of late 80´s Somaliland has risen like a phoenix through the hard work and sacrifice of its people. Surely, it is not too much to ask that these companies growing richer each day should invest some of that money back into the country.

The services these companies provide for the people of Somaliland is not in question, what is in question, is whether these companies are willing pay the right amount in taxes and therefore contribute to the development of the nation and reinvest in the people of Somaliland.

On a final note, the author would like to congratulate Edna Aden Ismail, of Enda Hospital in Hargeisa, Somaliland for being made a Chevalier of Legion d’ Honneur, France’s highest civilian award for services to humanity. An example to not just Somalilanders, Africans, Arabs, but to the whole world.

By Ahmed Kheyre

Email: ruraledcomm@yahoo.co.uk

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