Business / Economy
Zimra to raid nostro accounts
17 Jun 2014 at 06:56hrs | Views
Government tax-collector, the Zimbabwe Revenue Authority (Zimra), is in consultations with the Reserve Bank of Zimbabwe and the ministry of Finance to demand tax from nostro accounts, Commissioner General Gershem Pasi said Monday.
Pasi told journalists on the side-lines of a Zimra one day conference on investigations and international affairs that discussions were at an advanced stage to make effect the garnishees.
"There is dialogue between us and the new Central Bank Governor (John Mandugya) and the Finance ministry," said Pasi.
"All we are saying is if there is money made in Zimbabwe and its sitting in an account somewhere, whether it is earning interest or not ,we should deem it to be earning interest so that we start taxing that amount, or that amount should be brought back so that it can help in the banking sector."
A nostro account is a bank account held in a foreign country by a domestic bank, denominated in the currency of that country. They are used to facilitate settlement of foreign exchange and trade transactions.
Pasi said the matter required efforts from all concerned stakeholders if it has to be effective.
Zimra used the conference to discuss with the heads of public enterprises issues that were un-earthed during the authority's tax audits in government entities.
"Some of the issues picked up by the audits include benefits not being taxed, which people consider them as being in-kind but even in-kind benefits should be quantified by accountants, they put a monetary value and then deduct the pay as you earn (Paye) and that was not happening in some instances.
"Sometimes there are cases where Paye has been deducted but not paid over either due to some lapses in the accounting systems or in a few cases, blatant non-compliance," the Zimra chief said.
Meanwhile, Zimra and parastatals workshop commissioner for customs and excise duty Happias Kuzvinzwa, told the same conference that the country's border sline were too porous allowing even people to be smuggled.
With only 15 legal crossing points, Zimbabwe according to Zimra has not less than 32 illegal border points for use in smuggling by well-orchestrated by syndicates
"Goods on high demand, such as clothing, shoes, blankets, cooking oil, soap and general groceries for imports and cigarettes for export are often smuggled through these undesignated entry or crossing points," said Kuzvinzwa.
He said Zimra was now looking at opening of new border posts to reduce the smuggling scourge and has prioritised Mlambapele (Matabeleland South), Cashel Valley (Manicaland), Chinake (Mashonaland East) and Binga (Matabeleland North) besides existing infrastructure upgrades currently underway.
Pasi told journalists on the side-lines of a Zimra one day conference on investigations and international affairs that discussions were at an advanced stage to make effect the garnishees.
"There is dialogue between us and the new Central Bank Governor (John Mandugya) and the Finance ministry," said Pasi.
"All we are saying is if there is money made in Zimbabwe and its sitting in an account somewhere, whether it is earning interest or not ,we should deem it to be earning interest so that we start taxing that amount, or that amount should be brought back so that it can help in the banking sector."
A nostro account is a bank account held in a foreign country by a domestic bank, denominated in the currency of that country. They are used to facilitate settlement of foreign exchange and trade transactions.
Pasi said the matter required efforts from all concerned stakeholders if it has to be effective.
"Some of the issues picked up by the audits include benefits not being taxed, which people consider them as being in-kind but even in-kind benefits should be quantified by accountants, they put a monetary value and then deduct the pay as you earn (Paye) and that was not happening in some instances.
"Sometimes there are cases where Paye has been deducted but not paid over either due to some lapses in the accounting systems or in a few cases, blatant non-compliance," the Zimra chief said.
Meanwhile, Zimra and parastatals workshop commissioner for customs and excise duty Happias Kuzvinzwa, told the same conference that the country's border sline were too porous allowing even people to be smuggled.
With only 15 legal crossing points, Zimbabwe according to Zimra has not less than 32 illegal border points for use in smuggling by well-orchestrated by syndicates
"Goods on high demand, such as clothing, shoes, blankets, cooking oil, soap and general groceries for imports and cigarettes for export are often smuggled through these undesignated entry or crossing points," said Kuzvinzwa.
He said Zimra was now looking at opening of new border posts to reduce the smuggling scourge and has prioritised Mlambapele (Matabeleland South), Cashel Valley (Manicaland), Chinake (Mashonaland East) and Binga (Matabeleland North) besides existing infrastructure upgrades currently underway.
Source - Zim Mail
