adminDid you know that all persons carrying out business in Zimbabwe are required by law in terms of Section 223 of the Customs and Excise Act [Chapter 23:02], Section 37B of the Income Tax Act [Chapter 23:06] and Section 57 of the VAT Act [Chapter 23:12] to keep and maintain records of business transactions and proper books of accounts?
The above legal provisions require the following to be observed:
That these records be kept in the English language unless dispensation to the contrary has been granted by the courts or the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA).
That these records be kept for a minimum period of six (6) years.
That these records be open and available for inspection by ZIMRA officers as may be required.
That they be available for retrieval, in the original form or copies, by ZIMRA officers as may be required.
That, where these records are kept on computer, the ZIMRA officer should have access to these records for inspection and/or retrieval from such computer or other computer related gadgets or media.
Books of accounts and related records to be maintained include:
Ledgers
Discount Vouchers
Cash-Books
Bank Reconciliations
Journals
Computer Records
Paid Cheques
Bills Of Entry
Bank Statements/Deposit Slips
Consignment Notes
Stock Sheets
Credit Notes
Invoices
Stock Sheets/Books
Goods Received Notes
Asset Registers
Proof Of ZIMRA Payments
Debit Notes
Delivery Notes
Purchase Requisites
Final Accounts
Stamped Returns Lodged With ZIMRA
What are the advantages of keeping and maintaining proper books of accounts to the tax payer?
Besides being a legal requirement, keeping and maintaining proper records;
Saves the tax payer time during ZIMRA audits and investigations, as verifications are done faster and easier.
Enables easier verification of ZIMRA audit findings by the tax payer.
Reduces the number of estimated assessments and tax payers will be taxed on actual and not estimated performance.
Reduces objections and administration expenses through representatives as accurate and supported returns are lodged to ZIMRA.
Simplifies preparation of accurate returns thereby reducing chances of penalties and interest charges.
Enables timeous submission of returns making the application for tax clearance easier.
Simplifies and speeds up the verification and processing of refunds to clients.
Enables internal control for the tax payer and helps deter and detect fraudulent activities.
Provides a bank of information for the taxpayer’s analysis and comparison of performance from one tax year to the other.
Penalties and prosecution
Record keeping forms the foundation and root of tax payer’s position. It also shapes and directs business processes for effective management of one’s business activities.
Our valued clients are reminded that it is a legal requirement to keep and maintain proper books of accounts. Failure to adhere to this requirement constitutes an offence which attracts penalties and possible prosecution.
Our valued clients are also hereby reminded that:
VAT for the month of August is due on the 25th of September 2014.
To contact ZIMRA: Visit our website: www. zimra.co.zw, Follow us on Twitter:.@Zimra_11, Like us on Facebook: www.facebook.com/ZIMRA.11, Send us an e-mail: [email protected], Call us (Head Office): 04 –758891/5; 790813; 790814; 781345; 751624; 752731
Online Reporter