Zimra swoops in on companies

Zimbabwe Revenue Authority (ZIMRA) has targeted corporate account holders at banking institutions in a move which analysts believe is calculated to make it easier for the tax collector to sweep funds from defaulting corporates.

ZIMRA last week wrote to some banks, asking them to provide details of all their corporate account holders including addresses and bank balances.

However, banking sector sources privy to the developments said that banks approached their regulator, the Reserve Bank of Zimbabwe to seek guidance before divulging customer information to a third party.

The RBZ is said to have told bankers not to respond to ZIMRA's request.

The move by ZIMRA, while supported by legislation in terms of the Income Tax Act, the Customs and Excise Act and the Value Added Tax Act, would have flown into the face of a centuries old tradition of banking secrecy, enshrined in the common law duty of confidentiality imposed on bankers.