Zimra rides on regulator databases

Zimra rides on regulator databases
Published: 14 December 2017
ZIMBABWE'S tax collector, the Zimbabwe Revenue Authority (ZIMRA) has entered into an agreement with all regulatory authorities in the country to gain access into their databases.

ZIMRA's acting commissioner general, Happias Kuzvinzwa said the synergy will see regulatory bodies submitting names of their newly registered clients to the tax collection agency. ZIMRA will then make follow ups on these clients.

"As we try to collect more revenue, we have entered into an arrangement with regulatory authorities in the country for us to get information of those who have registered so that we can make follow ups on tax obligations. We know they are registered somewhere, so this arrangement will help us collect more," Kuzvinzwa said.

Kuzvinzwa also said ZIMRA has registered about 19 000 small to medium enterprises between January and November this year as part of efforts to broaden the tax base adding that the businesses have contributed about $15 million.

ZIMRA has also intensified tax audits and these are going as far back as six years.

The tax collector has also heightened efforts to force companies to fiscalise, a move which is expected to assist in curbing transit fraud, smuggling and illegal dumping of goods on the Zimbabwe market.

Zimbabwe's economy has become largely informal, making it difficult for ZIMRA to collect taxes.

Many companies have closed and many more continue to shut down due to operational challenges, reducing the tax base.

In the first half of the year, gross collections stood at $1,789 billion, some eight percent above the $1,656 billion target.

Zimbabwe is targeting $3,7 billion revenue inflows for year end, but ZIMRA said with increased levels of compliance, revenues have the potential to reach $6 billion annually.

The bulk of Zimbabwe's revenue collections come from individual tax, followed by excise duty.

Companies are the highest defaulters accounting for a huge chunk of the $3,12 billion tax debt as at June 30, 2017.
- fingaz
Tags: Zimra,


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