January 14, 2020

Zimra tightens noose on tax defaulters

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Ndaka Majaka

THE Zimbabwe Revenue Authority (Zimra) says it is has put a stop to its tax moratoriums as some tax payers had started defaulting even more, taking advantage of the good gesture.

Zimbabwe’s tax collecting agency has been dolling out moratoriums since 2015 in the wake of economic challenges that have affected the country.

Zimra Commissioner General Faith Mazanhi said the tax collecting agency would come down hard on defaulters, amid indications that companies owed close to USD2 billion in outstanding company tax dues as of January 2019.

“Amnesties encourage those who don’t pay and discourage those who are willing to pay. We have done it in the past.

“It is not my decision, it is the minister’s decision but I am sure that he is not in favour of an amnesty (any longer) because it then encourages people to wait for an amnesty and not pay,” Mazanhi said.

Zimra issued a tax amnesty for defaulting corporate clients in 2015, who for the most part did not take advantage of the provision.

The Zimra-granted amnesty period lapsed in March 2016, with ZIMRA calling for defaulters to negotiate for payment plans so that obligations could be met.

Initially, the provision granted a limited tax amnesty for a period of six months, with effect from October 1, 2014.

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