Zimra to con­duct life­style au­dit

Chronicle (Zimbabwe) - - Business Chronicle - Busi­ness Re­porter

THE Zim­babwe Rev­enue Author­ity (Zimra) plans to con­duct a life­style au­dit in the coun­try as part of mea­sures to en­force com­pli­ance with tax pay­ment reg­u­la­tions.

While the coun­try is go­ing through a rough eco­nomic patch ev­i­denced by job losses and pay cuts in some en­ti­ties, the tax author­ity says lev­els of non­com­pli­ance are still high.

“The posh houses be­ing built and flashy cars be­ing driven around Zim­babwe do not tally with the de­cline in in­di­vid­ual taxes recorded,” Zimra board chair Mrs Wil­lia Bony­ongwe said in a rev­enue per­for­mance re­port for the first quar­ter of 2016 re­leased at the week­end.

“In this re­gard Zimra will con­tinue to con­duct life­style au­dits to en­force com­pli­ance.”

She said Zim­babwe’s econ­omy was in se­ri­ous dis­tress and re­quired ur­gent so­lu­tions and unity of pur­pose in­clud­ing tack­ling cor­rup­tion to move for­ward.

Apart from the crip­pling ef­fects of sanc­tions, Mrs Bony­ongwe sin­gled out cor­rup­tion as a dev­as­tat­ing fac­tor to the econ­omy.

“While sanc­tions are ex­oge­nous, cor­rup­tion is en­doge­nous and within our con­trol to deal with as a de­lib­er­ate pol­icy. The cul­ture of cor­rup­tion has de­stroyed good busi­ness strat­egy, ev­ery good Gov­ern­ment pol­icy and ef­forts to re­vive the econ­omy.

“Cor­rup­tion de­stroys le­git­i­mate busi­nesses. It has per­me­ated all ar­eas of our so­ci­ety. It is no longer time to talk about it, we just have to deal with it de­ci­sively,” she said.

The coun­try recorded a 12 per­cent in­crease in in­di­vid­ual tax in the sec­ond quar­ter of this year to June com­pared to the first quar­ter.

“Col­lec­tions un­der this rev­enue head amounted to $355.77 over H1:2016, which is 9,24 per­cent be­low tar­get and 6.26 per­cent down from $379.5 mil­lion col­lected in H1:2015,” said Zimra.

Mean­while, the Pay As You Earn (PAYE) debt as at the end of the first half of the year stood at $679.8 mil­lion, up from $555 mil­lion at the be­gin­ning of the year.

e tax head is ex­pected to re­main un­der pres­sure ow­ing to the pre­vail­ing eco­nomic en­vi­ron­ment and the new struc­ture of eco­nomic units, said the author­ity.

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