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Gift Mavezere
BRANDING when executed properly will legitimise businesses in the minds of clients as it builds good will towards them. Branding is the sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their mindset based on perceived emotional and functional benefits.

So we can say in short that a brand is a name, term, sign, symbol, design, or some combination that identifies the products of a firm. Brands are a means of differentiating a company’s products and services from those of its competitors.

Yet it should be noted that legitimacy is more important than flamboyancy, which is more like the biblical “obedience is better than sacrifice”. This article treats legal compliance as an aspect of branding, which is a conspicuous pursuit for perfection and a strong desire to put in place quality assurance systems, which is a much needed paradigm departure from the legendary “Museyamwa” business outfit, whose metaphor has poignantly ceased to absolutely represent a good business but has now become a derogatory trope for business brands whose operations are below the expected standard and are seemingly comfortable in the stupor of business mediocrity.

A brand (company) inherently has a myriad of brand layers that much like organisations, is important for strategic communication professionals to notice and satiate in their communication practices that absolutely purport to poise the brands they are patrons for as legitimate entities in the minds of their assorted and invaluable stakeholder base and clientele.

Fiscal obedience is a vital metaphor of legal compliance for brands, more so because the Zimbabwe Revenue Authority (Zimra) has probably sharpened the scrutiny of one’s current and potential clients by urging small to medium enterprises (SMEs) to formalise their businesses and pay tax as this provides the necessary funding for the country’s development.

This might mean all legit clients will inquire their suppliers’ or service providers’ fiscal obedience or at least need to see their tax clearance certificate or their tax compliance profile before entering into deals with them that is checking for their obedience before accepting their offerings. Sometimes clients may use one company’s non-compliance to bully them or even underpay them. In the same vain it is important to note that companies are also under the obligation to withhold tax thereby collecting taxes due to the Government. This will definitely affect the cash flow on one’s business yet compliance will help business enjoy some protection or benefits.

Tax compliance will therefore become a prerequisite, unless if a business is aiming to settle for less, which might explain why some businesses remain girded with a long worn and unkempt “Museyamwa” business outfit. Speaking at a technology workshop held in Bulawayo, early this year , Zimra’s client care service officer, Mr Bothwell Muguto, said SMEs have an obligation to pay tax as required by the law.

“As long as one is in business it’s required to register and pay tax. This helps to ease pressure that is associated with managing (national) cash flows and helps the SMEs to get loans from, say Sedco, he said. Mr Muguto said both small and established businesses should cooperate with the authorities in submitting required tax information and complying with tax regulations.

“Every registered employer is required to submit returns of all people employed detailing the salaries, wages, allowances, benefits and pension deductions,” he said.

Speaking at the same event, founder of Techfest Mr Takunda Chingozoh said it was important for young entrepreneurs to formalise their businesses.

“Zimra has made it easy for young people to understand ways of doing business and open their eyes to see the right way of registering their businesses.

“They now understand all the formalities wanted and it is good they heard from them (Zimra) rather than relying on hearsay,” he said.

It is commendable for (Zimra) to be proactive and clarify fiscal issues to the business community as it contributes to the growth of the entire economy. Cognisant of the truisms that Zimra has put to the fore, it is, however, important for Zimra patrons to go further than emphasizing tax compliance as a requirement and instead, in addition pinpoint the benefits of tax compliance to the tax payer, for example, what Muguto points out, it ‘helps the SMEs to get loans from, say Sedco’.

It is also a truism that businesses that do not pay tax probably erroneously presume (paying tax) will suffocate their struggling businesses. Strides should be taken in showing businesses how tax compliance benefits them rather than placing it as a requirement that needs to be fulfilled. Meanwhile, captains of industry and commerce have expressed their willingness to comply with fiscal laws for the development of the nation.

Zimra Acting Commissioner General, Mr Happias Kuzvinzwa, has also highlighted the benefits of voluntarily complying with fiscal laws, and urged business to avoid incurring unnecessary penalties and interest which are levied on late or non-payment of taxes.

“I urge you to avoid penalties and interest by paying your taxes, customs and excise duties on time and in full. Penalties are an unnecessary and avoidable cost to business and can affect the cashflows of an enterprise,” added Mr Kuzvinzwa.

The key, as CZI president Mr Busisa Moyo said, is to “benchmark ourselves against regional peers and global best practices in order to grow the cake. We therefore need to strike a balance between tax compliance and survival of industries”.

Recently, Zimra called upon SMEs to understand their tax rights and obligations as well as to voluntarily comply with fiscal legislation for the development of the nation. — @sirmavezere

l Gift Mavezere, is a marketing entrepreneur, who holds a Bachelor of Arts Honours Degree in English and Communication.