THE Zimbabwe Revenue Authority (Zimra) last week reportedly garnished several mining companies’ bank accounts with outstanding taxes in a reportedly desperate move to raise salaries and bonuses for civil servants.
PAIDAMOYO MUZULU SENIOR REPORTER
NewsDay has it on good authority that the country’s leading diamond miners, Mbada Diamonds, had its four bank accounts raided over tax arrears amounting to $12 million.
The latest raids came a week after government’s tax collector introduced a “carrot-and-stick” approach in dealing with defaulting or evading corporates and individuals. The authority has wielded the stick on diamond mining firms while dangling a carrot of amnesty to other corporates who can come clean on their arrears and provide a comprehensive payment plan.
A source in the diamond mining sector revealed that last week that Zimra issued a number of garnishee orders against bank accounts of diamond mining companies.
“All diamond mining companies at Chiadzwa were slapped with garnishee orders in an effort by the authority to shore up its revenues at this crucial phase when it needs to pay civil servants bonuses,” the source said.
Other firms that were affected are Marange Resources, Anjin and Gyan Nyame.
“The mines are struggling and some have since the beginning of the year restructured their wage bills by effecting salary and wages cuts to remain operational,” the source added.
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Diamond mines have since 2009 played a crucial role in sustaining government activities through advance tax payments despite the opaqueness of the industry. The action comes barely a week after Zimra boss Gershem Pasi confirmed the authority’s impending ruthless efforts in revenue collection.
Pasi told delegates business leaders at a breakfast meeting that the authority will become more stern after the expiry of the amnesty on tax defaulters and evaders ends in March next year.
The tax amnesty became effective on October 1, 2014 and expires on March 31, 2015.
The amnesty is in respect of tax non-compliance which occurred between February 1, 2009 and September 30, 2014. The amnesty is on penalties, interest and prosecution for non-payment and other irregularities in connection with all taxes administered by Zimra to all taxpayers who voluntarily acknowledge their tax obligations and make payment plans.
Pasi said: “In exchange for the information, the person will not be liable for penalty, interest or prosecution for the disclosed irregularity.”
Finance minister Patrick Chinamasa in September revealed that the government revenue collection was performing below target during the mid-term fiscal policy review statement.
Civil servants have had no fixed salary dates since June as revenue collection and general economic performance continued to miss the 2014 budget estimates.
