adminNelson Gahadza Business Correspondent
Companies should take advantage of the tax amnesty to offset, in workable terms, taxes due to the Zimbabwe Revenue Authority, a tax expert has said.
Speaking at a tax seminar, Mr Nigel Forsgate, a tax leader for Ernst & Young central region which comprises Zimbabwe, Zambia and Malawi said companies can negotiate for payment periods which will not financially constrain company operations.
“Make good of it, but do not make rushed decisions as any irregularity will disqualify you from the amnesty,” he said.
He said the process requires full disclosures and companies need to do a thorough job before submitting the forms.
“To apply for an amnesty, you give everything but proceed carefully.”
Mr Forsgate however said there is need for Zimra to consider extending the amnesty period as the time-line has now shrunk.
The amnesty period will run until 31st March 2015 and the defaults being covered span from February 2009 up to February 2014.
“It also requires that companies take time to settle the form and agree.
“Zimra should consider some extension to the period as the process has been delayed,” he said.
According to Mr Forsgate, companies that Zimra is investigating are not eligible for the amnesty as the tax authority is still continuing with investigations.
Speaking at the same event leading industrialist Mr Jimmy Psillos said the country’s economy will continue to limp and the challenges will take a lot of time and political will.
He said Zimbabwe’s economy will remain vulnerable to external shocks such as commodity prices, weakening of the rand and others factors.
“The country is operating with a strong currency in a region of weak currencies.
“The region is the future of Zimbabwe and therefore the country should strive to grow in line with regional countries,” he said.
He said companies need to be viable and utilise the domestic market which already has the foreign currency they were seeking outside.
“There are no viable business that are bankable which financial institutions are keen to finance without much risk,” he said.
Mr Psillos said country risk will remain high unless various business and policy irregularities are addressed.
Online Reporter