News / National
Zimra will not extend six-month tax amnesty
26 Jun 2018 at 07:01hrs | Views
THE Zimbabwe Revenue Authority (Zimra) has said it will not extend the six-months tax amnesty granted to businesses which expires on Saturday and will descend heavily on tax evaders soon after the expiry of the moratorium.
The tax amnesty was extended to all businesses or persons who had unpaid tax or duty by December 1, 2017 and those with outstanding taxes and duties that accrued prior to the specified date. In March, Government gazetted provisions that allow businesses to be granted tax amnesty upon applying to Zimra as part of efforts to encourage them to regularise their tax issues.
The tax amnesty, which is a relief granted on penalty, interest and prosecution for non-compliance with a statutory obligation, was introduced through the Finance Act No.1 of 2018. In an interview yesterday, Zimra acting head of corporate communications, Mr Taungana Ndoro, said the tax collector would soon be clamping down on errant tax evaders.
"We have not had any directive to extend it any further but we will only know who has taken up the amnesty soon after it has expired. If they (businesses) had not applied for the tax amnesty, it's back to business as usual," he said.
"There are no more reprieves because a tax amnesty means we are allaying penalties and maybe interest for the period that is in the tax amnesty."
In an effort to encourage clients who are yet to regularise their tax affairs, the revenue collector has come up with incentives such as full remission of penalties and voluntary disclosure. Under full remission of penalties, any person who had unpaid tax or duty by December 1, 2017 and has made his application by 30 June 2018, is eligible to be granted full remission of penalties.
The full remission also covers clients who have already made their applications and had partly paid the principal tax by June 30, 2018. Under the voluntary disclosure, Zimra said in order to encourage taxpayers to come forward and volunteer disclosure of omitted income and other tax compliance obligations, the authority was granting full remission of penalties as part of an ongoing programme notwithstanding the expiry of the amnesty on June 30, 2018.
Government has said the tax amnesty presented an opportunity for all persons and businesses to disclose incomplete or unreported information relating to the payment of tax and to settle the principal tax, duties or amounts due.
The tax amnesty was extended to all businesses or persons who had unpaid tax or duty by December 1, 2017 and those with outstanding taxes and duties that accrued prior to the specified date. In March, Government gazetted provisions that allow businesses to be granted tax amnesty upon applying to Zimra as part of efforts to encourage them to regularise their tax issues.
The tax amnesty, which is a relief granted on penalty, interest and prosecution for non-compliance with a statutory obligation, was introduced through the Finance Act No.1 of 2018. In an interview yesterday, Zimra acting head of corporate communications, Mr Taungana Ndoro, said the tax collector would soon be clamping down on errant tax evaders.
"We have not had any directive to extend it any further but we will only know who has taken up the amnesty soon after it has expired. If they (businesses) had not applied for the tax amnesty, it's back to business as usual," he said.
"There are no more reprieves because a tax amnesty means we are allaying penalties and maybe interest for the period that is in the tax amnesty."
In an effort to encourage clients who are yet to regularise their tax affairs, the revenue collector has come up with incentives such as full remission of penalties and voluntary disclosure. Under full remission of penalties, any person who had unpaid tax or duty by December 1, 2017 and has made his application by 30 June 2018, is eligible to be granted full remission of penalties.
The full remission also covers clients who have already made their applications and had partly paid the principal tax by June 30, 2018. Under the voluntary disclosure, Zimra said in order to encourage taxpayers to come forward and volunteer disclosure of omitted income and other tax compliance obligations, the authority was granting full remission of penalties as part of an ongoing programme notwithstanding the expiry of the amnesty on June 30, 2018.
Government has said the tax amnesty presented an opportunity for all persons and businesses to disclose incomplete or unreported information relating to the payment of tax and to settle the principal tax, duties or amounts due.
Source - chronicle
