Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
The Zimbabwe Revenue Authority recovered over US$540,7 million and ZiG4,63 billion (US$178m) in unpaid taxes through audits and investigations in 2025, a senior official said.
The figures highlight the magnitude of attempts by economic agents to evade tax and the success of the tax authorities’ measures in plugging potential tax leakages.
Plugging and countering tax evasion is critical because it secures public revenue, ensures market fairness and stabilises the economy by ensuring that the Government collect their rightful revenue.
ZIMRA’s director of finance and administration, Ms Ethel Chitanda, revealed this while presenting the tax authority’s annual report during its 9th Annual General Meeting in Harare on Friday.
The bulk of the recoveries came from targeted sector-based investigations, which generated US$386,85 million and ZiG2,77 billion, while routine audits accounted for ZiG1,86 billion and US$153,89 million.
According to the report, ZIMRA completed 7 162 audit cases and 398 sector-based investigation cases during the year, making 2025 one of its most active enforcement years on record.
The report attributes the success to greater use of technology and intelligence gathering.
“The use of data analytics, sector-based business intelligence and systems review resulted in data-driven intelligence being used for smart audits and investigations,” she said.
“The implementation of the strategies Detect, Disrupt, Deter has helped ZIMRA plug revenue leakages in the hidden economy.”
This comes as Zimbabwe continues efforts to contain tax leakages linked to informality, underdeclaration of income and non-compliance across several sectors of the economy.
Tax experts have long argued that strengthening compliance enforcement is one of the fastest ways to increase domestic resource mobilisation without introducing new taxes.
The latest figures suggest the extent of potential tax leakages that may be lost without regular investigations and audits.
ZIMRA’s intensified enforcement drive also resulted in a sharp rise in assessed tax debt.
Outstanding debt increased by 35,53 percent, rising from ZiG22,98 billion in 2024 to ZiG31,15 billion in 2025.
The authority linked the increase directly to aggressive audit and investigation activities.
“The increase in debt is on account of intensive audits, investigations and routine compliance checks, which resulted in assessments being raised from non-compliant taxpayers,” Mrs Chitanda said.
“This shows that Auditors and Investigators are doing their work of unearthing undeclared income.”
The report suggests that many businesses and individuals identified during investigations are yet to settle their obligations, explaining the growth in assessed debt despite strong recovery efforts.
To reinforce compliance, the authority pursued several criminal prosecutions against tax offenders.
“Prosecutions are a deterrent tool used to plug revenue leakages. The prosecutions signal a message to discourage tax offenders from non-compliance,” she said.
“A total of two hundred and ninety-nine offenders were successfully prosecuted after investigations and audits, demonstrating the Authority’s thrust to fight tax evasion.”
While the recovery figures point to stronger enforcement, ZIMRA’s report also reveals challenges in converting tax declarations into actual payments.
The authority reported that remittance performance weakened significantly during the year.
Total remittances received stood at 867 946 against expected remittances of 1 509 631, resulting in a remittance rate of 57,49 percent, down from 75,44 percent recorded in 2024.
The decline suggests that a considerable number of taxpayers who file returns are still failing to fully settle their tax obligations.
“ZIMRA remittances are the actual payment of taxes after filing returns, essential for sustaining revenue collection, maintaining compliance and avoiding penalties,” Mrs Chitanda said.
The report also highlighted progress in tax dispute resolution, an area increasingly viewed as important in maintaining confidence in the tax administration system.
Last year, ZIMRA received 155 objections, 38 appeals and five applications for advance tax rulings.
Of these, 174 cases were finalised, representing an impressive resolution rate of approximately 88 percent.
“ZIMRA is open to objections and appeals in a formal, legally structured way, balancing taxpayer rights with the need to maintain compliance,” she said.
“Dialogue and education are encouraged, but taxpayers must follow proper procedures and timelines are to be considered.”
The authority said the high resolution rate demonstrates the effectiveness of its dispute resolution framework and ensures taxpayers receive timely outcomes on contested assessments.
However, the headline figure from the report remains the massive revenue recovered through investigations and audits.
Recoveries exceeding US$540 million and ZiG4,6 billion illustrate both the magnitude of tax non-compliance within sections of the economy and the growing sophistication of ZIMRA’s enforcement capabilities.
As the Government intensifies efforts to mobilise domestic resources and broaden the tax base, the figures suggest audits, investigations and data-driven intelligence will remain central tools in the fight against tax evasion and revenue leakages.
