Tough times loom for tax offenders Mr Gershem Pasi
gershem pasi

Mr Pasi

Harare Bureau
TOUGH times loom for tax offenders post the amnesty, which lapses end of this month as the Zimbabwe Revenue Authority, disappointed by a paltry 1,471 applications for tax amnesty will launch a blitz against the abundant “evidence of wealth” to recover what belongs to the government.

Zimra boss Gershem Pasi told journalists on Friday that only 1,471 applications have been received since October last year when the amnesty was launched.

Of the applications 159 were rejected mainly because of incomplete information and where declarations were made on amounts that

would have already been assessed.

“We’re somewhat disappointed. I expected taxpayers to come out in their thousands not just one thousand by this time. There’s a lot of evidence of wealth in the country. From that evidence when we compare it with what we’ve on our books as taxpayers, there’s a lot of under declarations. At this point in time things could be better,” said Pasi.

The tax amnesty covers offences committed during the period from February 1, 2009 to September 30, 2014. The period within which persons can apply for tax amnesty is from October 1 last year to the end of this month.

Zimra has opened the amnesty to all classes of taxpayers.

Post the tax amnesty, Zimra will not be as lenient with offenders in arranging payment terms. Penalties and interest, suspended in line with tax amnesty will be back on board. Garnishee orders, although being the last resort will be considered.

The tax amnesty also offers non-prosecution to defaulters who voluntarily apply for pardon.

“Come April we’ll not be as lenient in arranging payment terms. We’ll seek to recover our money more expeditiously. We’ve capacity through our ICT development to have all the information and process it. We’ll appeal to our Minister (of Finance and Economic Development) for sterner penalties for truant tax payers after the amnesty because government has said come clean. It’s also our recommendation that there be no more tax amnesties in future,” said Pasi.

The chief government tax collector says the idea of inviting people to come forward is not aimed at strangling economic growth  through closure of companies in default of tax obligations but to grow the authority’s tax database in order to “move together going forward”.

Zimra’s tax amnesty has found support from the recently formed Black Business Forum which welcomed the move.

In a statement Black Business Forum Media and Public Relations Executive William Chaitezvi said the macro-economic environment severely affected many black-owned businesses in the last five years and continues to take its toll on the few remaining businesses.

In many instances non-compliance on tax remission was caused by exogenous factors which were beyond the control and management of businesses.

“This reprieve will enable black-owned businesses to file returns and comply with the country’s tax laws without the burden of penalties and interest.

“We commend Zimra for this gesture. Flexibility on the application of tax laws is vital to ensure that the current existing businesses do not collapse due to burdensome tax obligations,” said Chaitezvi.

Black Business Forum however appealed to Zimra to extend the repayment period to 2018 so as to ease pressure on the already poor performing cash flows.

The Black Business Forum is a pan African non-governmental and non-racial organisation that seeks to promote and protect the business and economic interest of black Zimbabweans who were previously disadvantaged.

The group provides capacity through training, market linkages and lobbying for enabling business environment and legislation.

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