Zimra to pounce on clubs, players

Sikhumbuzo Moyo Senior Sports Reporter
THE Zimbabwe Revenue Authority (Zimra) last week held a one day workshop for Castle Lager Premier Soccer League affiliated clubs where it was discovered that only Highlanders was remitting tax.The revenue authority who took the opportunity to explain the importance of ensuring that all taxes due to the authority was remitted, ordered the clubs to pay all the outstanding taxes.

Premiership chief executive officer Kennedy Ndebele referred questions to the revenue authority.

“We held a meeting with clubs last week where we discussed their tax obligations. I would not want to say whether they are compliant or not,” said an official at the Zimra Head Office who asked not to be named.

Highlanders chief executive officer Ndumiso Gumede confirmed that his club attended the meeting and was represented by its treasurer Jerry Sibanda.

“Sibanda told us that from the meeting, it emerged that only three clubs had the potential of meeting tax obligations and we were singled out as the only club making efforts to pay its taxes.

“The clubs were also told that their players pay income tax which should be backdated to the day the  season started,” said Gumede.

Last year in November, Highlanders were fined $300 for failing to account for VAT as well as not submitting income tax returns to Zimra.

Gumede said clubs asked Zimra to hold meetings with players to explain the issue of income tax.

“I think in the next few days we might see authorities from Zimra visiting clubs and talking to their players,” said Gumede.

The Income Tax Act [Chapter 23:06] specifies what elements of an employee’s remuneration or earnings are subject to tax and at what rate.

The tax-free threshold for individual taxpayers was raised from $225 to $250 from January 2012.

A majority of Premier League players earn salaries ranging from $600 to $1,300 a month excluding bonuses and other perks.