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Lovemore Zigara Midlands Correspondent
THE Zimbabwe Revenue Authority (Zimra) says very few companies have come forward to apply for the tax amnesty that the government put in force in October last year.
The government announced the waiver of penalties, prosecution and interest for non-payment and irregularities of all taxes covering the period from February 2009 to September 2014 in a bid to bring relief on financially strained firms and encourage compliance.
With only a month before the lapse of the initial six-month amnesty, which has been extended by nine months, only a handful of firms have applied.
Speaking during a Shipping and Forwarding Agents Association of Zimbabwe business workshop in Gweru yesterday Zimra Midlands provincial head of audits domestic taxes, Agnes Huvaya said the response for the amnesty facility was disappointing.
“We’ve made so much noise about issues to do with tax amnesty and it’s even being publicised in the media but to our surprise the response has been lukewarm. We’re however, encouraging corporates to take advantage of this tax amnesty because after the deadline if your books aren’t in order there would be consequences in this respect,” she said.
The meeting was meant to unpack the 2015 national budget in relation to customs issues.
Huvaya said the tax amnesty will not apply to those firms who are already under probe.
Contributing during discussion at the event, the chief executive officer for Makiman Cargo, Felix Mandishona, said due to slow uptake of the amnesty provision the state revenue collector should consider extending the window period by another six months.
“Most businesses especially small to medium enterprises (SMEs) don’t trust Zimra and they think it’s a ploy to net them hence the low uptake of the facility. There’s a need for proper engagement with Zimra and SMEs so that you allay such fears,” he said.
“Now we’re three months into the tax amnesty and my recommendation will be to engage small businesses and then extend this facility by another six months may be there would be a change in fortunes.”
Finance and Economic Development Minister, Patrick Chinamasa extended the waiver period in his 2015 budget which he presented late November last year.
Due to depressed economic climate, tax evasion had been rampant over the years, prejudicing the government of revenue it so much craves.
The initial tax amnesty, which became effective on October 1, 2014, will expire on March 31, 2015.
The regulation known as Finance Act (Tax Amnesty) Regulations was published on November 21.
The government is of the view that 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.
A public notice by Zimra said issues already covered in incomplete or on-going audits and investigations and other enforcement activities by Zimra were not covered by the amnesty.
“Zimra would like to urge its valued clients to take full advantage of this rare opportunity and regularise their tax affairs,” the notice said.
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