BY PRIVELEDGE GUMBODETE THE Zimbabwe Revenue Authority (Zimra) has launched an operation targeting companies not paying taxes in United States dollars despite selling their goods and services in foreign currency.
Section 4A of the Finance Act and section 38 (6) of the Value Added Tax Act requires traders to pay taxes in the currency of the transaction.
In a statement yesterday, Zimra said it had noted with concern that some businesses were paying taxes in local currency while they charged their goods and services in United States Dollars.
“Zimra has noted with concern that some traders are still not accounting for tax in the currency of transactions,” read the statement.
“Some sale points designated for forex transactions and sales from such machines are not declared to Zimra,” the statement said.
Zimra urged whistle-blowers to report companies for giving local currency receipts for forex payments.
“Zimra is urging traders to issue receipts on all transitions done with their customers. Taxpayers are urged to come forth and make voluntary disclosures of all undeclared, under-declared and or unpaid taxes to ensure they comply with tax laws to avoid inconveniences associated with non-compliance.”
Zimra also warned airtime traders, spirit rebate users and excise manufacturers to pay their excise returns on the 10th, 14th and 20th of this month respectively or risk penalties, possible suspension penalties and cancellation of licenses.
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