We will not destroy companies through tax collection, says Zimra

THE Zimbabwe Revenue Authority says it is not bent on destroying ailing companies by employing rigid tax collection measures if companies fail to fulfill their tax obligations.

The revenue board said, however, that it will continue to use garnishee orders as a last resort to collect tax from truant clients.
Zimra commissioner general Gershem Pasi said the authority will first exhaust every other avenue to collect outstanding tax obligations.

"We will, however, continue to support survival of companies and we will only use garnishee orders as a last resort to collect from truant clients. We know times are hard," said Pasi.

Pasi was speaking at the 3rd edition of the Taxpayer Appreciation Day commemoration yesterday. The commemoration ran under the theme; "Realising Zim-Asset goals through tax compliance".

"We don't want to close businesses. We want them to grow so that Zimra continues to surpass its targets year after year. Because if we close you down then next year what do we do?"

"Others which are spreading a cancer of absconding paying tax obligations will, however, be closed down.

"But of course we've always said there are one or two which we would not hesitate to close because their behaviour will be like a cancer which would need to be taken out but I am glad to say that those are few," said Pasi.

Officially opening the Second Session of the 8th Parliament of Zimbabwe on Tuesday President Mugabe said Government is aware of concerns of around implementation of tax collection systems which are said to be smothering business growth.

ZIMRA launched the inaugural Taxpayer Appreciation Day in 2011 to recognise taxpayers who consistently pay their taxes on time and in full.