The Zimbabwe Revenue Authority (Zimra) has disclosed that it would soon get tougher in dealing with non-tax compliant entities following revelations that despite 50 percent of business transactions being in foreign currency, many companies still remit their tax obligations in the local currency.
Zimra, which has in the past been involved in running battles with corporates over non-tax compliance has gone to the extent of garnishing accounts in order to recover what is owed.
Speaking during a virtual press conference on tax in forex organised by the tax collector, Zimra commissioner-general, Faith Mazani, appealed for compliance from companies, adding failure to do so would leave them with no other option but to take tough corrective measures.
“These (measures) include charging of penalties and interests, prosecution as provided for in the different statutes, naming and shaming non-compliant sectors or individual businesses,” she said.
“Our valued clients are therefore encouraged to avoid attracting the above sanctions and do the honourable by correctly declaring all their tax in full, on time, all the time.”
Mazani added: “This is an appeal that we are making in order to collect all the revenue wanted by the government and society in order for us to improve the economic development of our country.”
Speaking at the same conference, Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, said the importance of compliance could not be over emphasized.
“I have felt many times in this country that one of the areas of weakness is about compliance,” said Mangudya.
“Tax should be in the currency of the transaction. We are aware that some businesses are not even banking the cash that they are getting as sales. They now pay the money to Zimra in Zim dollars as opposed to the currency of the transaction.”
Mangudya added: “We need to ensure that we insist on compliance. If you look at this economy, about 50 percent of the transactions are in foreign currency and 50 percent are in local currency, that’s the way we see it and we expect the revenues to also show the same.”