The Zimbabwe Revenue Authority (Zimra) has given persons or representative taxpayers who were registered for trade an August 17 deadline to submit tax returns for the year ended December 31 or face censure.
BY TATIRA ZWINOIRA
The revenue authority said those with income from trade (persons not on self-assessment), employment, or persons registered for trade or income tax, but were not trading and those under capital gains tax must submit their tax returns by that date.
“The Zimbabwe Revenue Authority (Zimra) hereby gives notice in terms of Section 37 of the Income Tax Act (Chapter 23:06) to all persons or representative taxpayers who were registered for trade, or who received income, or to whom income accrued from a source within or deemed to be within Zimbabwe,” Zimra said.
“That they are required to submit income tax returns for the tax year ended December 31 2014.”
Details of the notice revealed that all persons in trade who had not been specified as being on self-assessment were required to submit their Income tax returns.
Persons in receipt of income from employment who, during the year 2014 terminated employment, changed employers, started employment, received income from more than one employer, or received pension, should submit returns.
All other persons registered for trade, being specified in this notice in terms of Section 37 of the Income Tax Act (Chapter 23:06) and were not trading (dormant persons/companies) were also reminded that they were required to submit their nil income tax returns.
It said persons under capital gains tax who disposed of specific assets (immovable property, shares, securities) during the year were also liable to submit the capital gains tax returns.
“Civil penalties of $30 are chargeable for each day the return remains outstanding from the first day when the return becomes due in terms of Statutory Instrument 97 of 2013. (Civil Penalty for late submission of returns) Regulations 2013,” Zimra said.
Companies and individuals have been defaulting with Zimra saying that it was owed over $1 billion.
In his Mid-Term Fiscal Policy Review statement, Finance minister Patrick Chinamasa said government would amend the Income Tax Act to regularise the extension of tax amnesty that had already been implemented.
Chinamasa proposed to further extend the tax amnesty by an additional four months to October 30.
A tax amnesty is a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or periods and without fear criminal prosecution.
Zimra is currently battling challenges such as liquidity constraints, limited lines of credit from financial institutions, power shortages, retrenchments and company closures which affected economic performance.