Tax Amnesty 2018

The Manica Post - - Business News -

IN AN ef­fort to en­cour­age our val­ued clients to reg­u­larise their tax af­fairs, Gov­ern­ment has, through the Fi­nance Act No. 1 of 2018 pub­lished on 15 March 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.

Tax amnesty is re­lief granted on penalty, in­ter­est and pros­e­cu­tion. 1. Who should ap­ply for Tax Amnesty?

Any per­son who has un­paid tax or duty by 1 De­cem­ber 2017 is el­i­gi­ble to ap­ply for 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 1 De­cem­ber 2017. The tax or duty should have been due and payable be­fore 1 De­cem­ber 2017. 2. What pe­riod is cov­ered by the tax amnesty?

The pe­riod cov­ered by the amnesty is the pe­riod be­fore 1st De­cem­ber 2017. All out­stand­ing taxes and du­ties that ac­crued be­fore the spec­i­fied date will be cov­ered by the tax amnesty. 3. When should a per­son ap­ply for the tax amnesty?

Ap­pli­ca­tions for tax amnesty should be sub­mit­ted from now until 30th June 2018. 4. Which taxes are cov­ered by the tax amnesty?

The amnesty cov­ers all out­stand­ing taxes or du­ties men­tioned in the In­come Tax Act (Chp.23:06), Value Added Tax Act (Chp. 23:12), Cap­i­tal Gains Tax Act (Chp. 23:01), Cus­toms and Ex­cise Act (Chp. 23:02) and Stamp Du­ties Act (Chp. 23:09). Bet­ting and To­tal­iza­tor Con­trol Act (Chap. 10:02), Tax Re­serve Cer­tifi­cates Act (Chap­ter 23:10).

This in­cludes the fol­low­ing: Em­ploy­ees Tax (PAYE), In­come Tax, Value Added Tax, With­hold­ing Taxes, Pre­sump­tive Tax, Cap­i­tal Gains Tax, Cus­toms and Ex­cise Du­ties, Stamp du­ties.

Tax­pay­ers are en­cour­aged to check for the fol­low­ing, which may be a ba­sis for out­stand­ing taxes or du­ties:

◆ Non- or un­der-dec­la­ra­tion of sales or Cap­i­tal Gains re­sult­ing in less taxes be­ing paid.

◆ Un­der­val­u­a­tion of im­ported goods.

◆ Non-pay­ment of duty on im­ported goods.

◆ Non-pay­ment of In­come Taxes, Pre­sump­tive Tax, VAT and Cap­i­tal Gains Tax as well as fail­ure to re­mit any taxes with­held.

◆ Fail­ure to ad­here to con­di­tions of the op­er­a­tion of a bonded ware­house or pri­vate sid­ing

◆ Non-sub­mis­sion of re­turns.

◆ In­cor­rect dec­la­ra­tion of cus­toms or ex­cise in­for­ma­tion which re­sult in less du­ties be­ing paid. How and where do you ap­ply for the tax amnesty?

Per­sons who wish to ap­ply for the amnesty must:

Com­plete the ap­pli­ca­tion Form TA01 in full. The form is ob­tain­able from the ZIMRA web­site www. zimra.co.zw.

De­clare out­stand­ing taxes or du­ties that are on re­turns or as­sess­ments cap­tured on ZIMRA sys­tems by 1 De­cem­ber 2017 or out­stand­ing taxes and du­ties not de­clared to ZIMRA but un­paid by 1 De­cem­ber 2017.

En­sure the form is com­pleted leg­i­bly in in­deli­ble ink.

Sub­mit the ap­pli­ca­tion to their near­est ZIMRA of­fice or send scanned copies us­ing the fol­low­ing email ad­dresses:

LCO & MCO amnestyl­comco@zimra.co.zw for clients in Large &

Medium Client Of­fices

Re­gion1

amnestyRe­gion1@zimra.co.zw <mailto:amnestyRe­gion1@zimra. co.zw> for clients in Re­gion 1

Re­gion2 amnestyRe­gion2@zimra.co.zw for clients in Re­gion 2

Re­gion3 amnestyRe­gion3@zimra.co.zw for clients in Re­gion 3

Cus­toms cus­tom­samnesty@zimra.co.zw for clients with ap­ply­ing tax amnesty on cus­toms issues.

Out­stand­ing re­turns or bills of en­try should be sub­mit­ted on-line for VAT, In­come Tax, Paye, Cus­toms and Ex­cise, and man­u­ally for With­hold­ing Taxes and Cap­i­tal Gains Tax

How does one pay the tax? 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 30th June 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 30 June 2018.

Un­der which cir­cum­stances will tax amnesty ap­pli­ca­tions not be con­sid­ered?

An ap­pli­ca­tion for 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 30 June 2018;

◆ The out­stand­ing taxes or du­ties have not been paid by 30 June 2018;

Do not be left out. Grab the op­por­tu­nity and be debt free!

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