Tax amnesty for companies
GOVERNMENT has gazetted provisions that allow businesses to be granted tax amnesty upon applying to the Zimbabwe Revenue Authority (Zimra) as part of efforts to encourage them to regularise their tax issues.
In a public notice, Zimra said the tax amnesty, which is a relief granted on penalty, interest and prosecution for non-compliance with a statutory obligation, was being introduced through the Finance Act No.1 of 2018.
“In an effort to encourage our valued clients to regularise their tax affairs, Government has, through the Finance Act No.1 of 2018, made provisions for the granting of a tax amnesty to persons on application.
“Persons include companies, corporate or unincorporated body of persons and trusts,” said the tax collector.
Zimra said any person who has unpaid tax or duty by December 1, 2017, is eligible to apply for the tax amnesty.
“This applies to tax or duty already known by Zimra and recorded on its systems or that which a person had not declared to Zimra but should have been paid by December 1, 2017.
“The tax or duty should have been due and payable before December 1, 2017.”
The tax amnesty covers the period before December 1, 2017, and all outstanding taxes and duties that accrued prior to the specified date would be covered by the reprieve.
Zimra said the amnesty covers taxes or duties such as those outstanding and mentioned in the Income Tax Act (Chapter 23:06), Value Added Tax Act (Chapter 23:12), Capital Gains Tax Act (Chapter 23:01), Customs and Excise Act, (Chapter 23:03) and Stamp Duties Act (Chapter 23:09), among others.
To apply for the tax amnesty, applicants must complete the Application Form TA01 in full and the document is attainable from Zimra.
As part of the prerequisites, applicants are also required to declare outstanding taxes or duties that are on the returns or assessment captured on Zimra systems by December 1, 2017, or outstanding taxes and duties not declared to the authority but unpaid by the 1st of December last year.
“A payment plan should be proposed by the applicant at the time of application and the outstanding taxes or duties should be paid up by June 30, 2018.
“It is important to note that tax amnesty is granted on the amount of outstanding tax or duty actually paid.
“Payments should be made while the applications are being submitted and processed, meaning there is no need to wait for approval as tax amnesty shall be granted to the extent of outstanding taxes or duties actually paid by June 30, 2018,” said the tax collector.
It said an application for tax amnesty shall not be considered where the application is in respect of any seizure, forfeiture or detention of any property or goods, the application is submitted after June 30, 2018, and when outstanding taxes or duties have not been paid by the above set June deadline. — @ okazunga.