Companies default on corporate tax


ZIMBABWE’S tax collector is owed over $500 million by companies through taxes making it difficult for the tax collector to meet revenue targets. This has forced the tax collector to engage government on the issue, an official has said.

Victoria Mtomba,Business Reporter

Speaking at a workshop aimed at conscientising MPs on the operations of Zimbabwe Revenue Authority (Zimra), the authority’s commissioner-general Gershem Pasi said several companies owed the revenue authority money due to the fact that the government was not paying for services rendered.

“The Government owes companies money and the businesses are not able to pay Zimra on time. Companies owe us $500 million-plus in taxes, this is a reflection of the economy. If the government finds a way to pay the authorities, that will enable money to circulate in the economy. Money is not circulating because the principal debtor is not paying,” he said.

“We are in discussions with Treasury; the resources are inadequate for us to generate $4 billion for the year.

“The government is the biggest debtor on the domestic market and we are trying to talk to Treasury to pay businesses. We had reached a stage where we were not paying. Treasury should pay people on time because we will end up changing all the laws.”

Pasi said some of the parastatals and local authorities that were paying their bosses huge amounts of salaries were partially paying taxes to Zimra.

“Yes, some were paying partially. Some boards authorise that our laws be flawed, you find that the whole system allowed
for different books, but that will be approved by the boards,” he said. Zimra recorded a total net of refunds collections for the year 2013 of $3,43 billion against a $3,64 billion target.

In 2013, many companies closed shop, which makes 2014
a difficult year as the tax collector will not be able to meet the revenue target set by the government.


  1. State is failing to pay companies, so they may in turn pay thei taxes to the State! Ya, ndo inonzi vicious circle iyi, or is it cycle ….. kkkkkkkkkkikiest!!!!
    Anyway thanx for the openness Gershem, just laying it out as it is. State muriko here!!!

  2. If I owe the Government $5,000 I should be worried. But if I owe the Government a $1 million then the burden of worry should surely shift to the Government and the society as a whole.

  3. zimra and nssa have contributed to the meltdown of this country. All they do is collect and penalise comapnies and individuals and offer their staff loans and mega salaries and tell government that there is no money. I wonder how much Gershom earns comapared to Cashbert Dubes salary.

  4. We need to see the income tax returns for all ZBC management and PSMAS if they were paying income tax for all these fringe benefits. Otherwise Zimra haiziye zvainoita.

  5. zimra is not serious. late penaulties for submission of returns. surely these laws ar only relevant kuAmerica.

  6. Its quite simple really. The Reserve Bank issues Tax Bonds to Companies for the equivalent of the tax these owe represented by the debt due to them by Government. These bonds are then accepted by Zimra as a means of payment for tax arrears. Government pays its debt, Zimra achieves higher collections, and the IMF/World bank is happy.

  7. Nyandoro you are right. The issue of $30 per day pernalty for late submission of returns whether its NIL or not, is unethical and it promotes closures due to fear of garnish….

    Pasi should do the Chombo way of clearing all the debts owed by the corporate sector to enable smooth economic ( indegenisation ) revival kkkkk

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