Tax amnesty: Business asks for review

Ngoni Dapira
THE Zimbabwe Revenue Authority should review taxes in view of the unstable economic landscape and not just give tax amnesty, the Manicaland business community has said. This was highlighted during a Manicaland tax seminar in Mutare on Wednesday organised by international chartered accounting firm, Baker Tilly Gwatidzo. The remark by one of the captains of industry was a follow-up to a presentation by Zimra audit officer, Mr Shingirai Kamutanho, on the incumbent tax amnesty drive by Zimra to all businesses.

Mr Kamutanho said the Zimra tax amnesty drive that has been open for application since October 1, 2014 had a deadline until March 31 for all interested applicants. He said this came into effect as a 2014 Mid-term budget review initiative by the Finance and Economic Development Minister, Cde Patrick Chinamasa.

“The tax amnesty is basically a relief from paying taxes or incurring penalties and interests from the period ranging 1 February 2009 to 30 September 2014.
“The time for payment of tax under the tax amnesty programme was extended from six to 15 months with a discount of 5 percent per annum.
“Prospective applications to the Commissioner-General should, however, be no later than 31 March 2015.

“When the amnesty is granted a payment schedule determined by the Commissioner will be laid down on a date to be paid no later than 31 December 2015,” said Mr Kamutanho.

Last week Zimra Commissioner-General, Mr Gershem Pasi, revealed that only 1 472 applications had been received since October last year when the amnesty initiative was launched.

Mr Pasi revealed that Zimra would launch a blitz against all defaulting taxpayers immediately after the March deadline in April.
With support from many in the seminar, one participant said the tax amnesty initiative was not well received because companies did not have money and were afraid of shooting themselves in the foot by coming out in the open to Zimra.

“Is Zimra taking into account our economic landscape or it just wants money no matter at what expense?
“As business we have debtors who are not paying, we have outstanding salaries and a national liquidity crisis affecting us on a day-to-day basis, but this is not being factored in by Zimra.

“Even the tax amnesty, the reason why a lot of companies are not coming out is simple. There is no money. If you apply and tie yourself to the 31 December 2015 deadline where a payment plan is laid down, where will one get the money in a year?” said the participant.

Baker Tilly Gwatidzo tax expert, Mr Kizito Musekwa, encouraged all in business to make use of chartered accounting firms for sound business advice. Mr Musekwa said most businesses were collapsing due to limited financial options.

He said consulting international financial and accounting services firms was important, especially for start-up small to medium enterprises.
“To those in the export business we can advise you on the latest changes in Government policies like the export market development expenditure incentive or the extension in the late delivery of exports from 10 to 30 days . . .

“The success of business lies in a strong foundation and a strong foundation needs expert advice, especially in our harsh economic times,” said Mr Musekwa. Baker Tilly Gwatidzo Mutare manager Mrs Christine Hulley said they would soon start their market drive in Manicaland to give SMEs financial and accounting advice.

Mrs Hulley said most companies evade taxation because very few really understood the taxation benefits and benefits of formalisation.
She urged SMEs to make use of experts in accounting and financial services, especially the start-up businesses.