News / National
Zimra engage more measures to increase tax base
11 May 2017 at 06:30hrs | Views
The Zimbabwe Revenue Authority has indicated that it is engaged in several measures to increase the tax collection base so as to improve the fiscas coffers.
This was revealed by the acting Zimra Commissioner General Happias Kuzvinzwa.
"Several measures are in place to increase the tax base. One such initiative, as you recall, was announced by the Minister of Finance and Economic Development in his 2017 National Budget Statement granting six months' special dispensation with effect from 1 January 2017 for Small to Medium Enterprises to voluntarily approach ZIMRA and register for VAT purposes," he said.
"SMEs are urged to take advantage of this opportunity to register with no questions asked and no retrospective collection of taxes that were due. The deadline for the dispensation is 30 June 2017. It is a common adage that money leaves footprints and in this regard the taxman continues to follow the foot prints of money through lifestyle audits. The Authority continues to engage companies which owe Taxes, Customs and Excise Duties and to the majority of debtors, payment plans to liquidate their debts have been agreed upon."
He said it is important to note that ZIMRA places garnishee orders as a last resort and this is in instances where taxpayers fail to cooperate with the Authority in meeting their tax obligations or breaching the agreed payment plan.
"It has been observed that tax debt consists mainly of non-remittance of VAT and PAYE, which would have been paid or accrued to the taxpayer in the course of the business in the tax period. It should be noted that VAT and PAYE do not constitute an income to the business and should not be accounted as such. VAT would have been paid by the generality of citizens when they consume goods and services which attract VAT, while PAYE would have been withheld from the worker after selling his labour," said Kuzvinzwa.
"It would, therefore, be a betrayal of trust vested by the people and Government to the VAT registered operator and employer when they then fail to remit such tax in full and on time."
This was revealed by the acting Zimra Commissioner General Happias Kuzvinzwa.
"Several measures are in place to increase the tax base. One such initiative, as you recall, was announced by the Minister of Finance and Economic Development in his 2017 National Budget Statement granting six months' special dispensation with effect from 1 January 2017 for Small to Medium Enterprises to voluntarily approach ZIMRA and register for VAT purposes," he said.
"SMEs are urged to take advantage of this opportunity to register with no questions asked and no retrospective collection of taxes that were due. The deadline for the dispensation is 30 June 2017. It is a common adage that money leaves footprints and in this regard the taxman continues to follow the foot prints of money through lifestyle audits. The Authority continues to engage companies which owe Taxes, Customs and Excise Duties and to the majority of debtors, payment plans to liquidate their debts have been agreed upon."
He said it is important to note that ZIMRA places garnishee orders as a last resort and this is in instances where taxpayers fail to cooperate with the Authority in meeting their tax obligations or breaching the agreed payment plan.
"It has been observed that tax debt consists mainly of non-remittance of VAT and PAYE, which would have been paid or accrued to the taxpayer in the course of the business in the tax period. It should be noted that VAT and PAYE do not constitute an income to the business and should not be accounted as such. VAT would have been paid by the generality of citizens when they consume goods and services which attract VAT, while PAYE would have been withheld from the worker after selling his labour," said Kuzvinzwa.
"It would, therefore, be a betrayal of trust vested by the people and Government to the VAT registered operator and employer when they then fail to remit such tax in full and on time."
Source - Byo24News
