A further two Zimbabwe Stock Exchange-listed companies have been dragged into a blazing dispute with the Zimbabwe Revenue Authority (Zimra) over retrospective tax assessments, with Masimba Holdings and Zimplow recently receiving combined backdated tax bills of nearly US$4 million.
The assessments add to a long list of tax disputes involving major companies.
It highlights growing tensions between corporates and the tax collector over the interpretation of tax laws during Zimbabwe’s turbulent multi-currency period between 2019 and 2022.
Masimba disclosed in its 2025 annual report that Zimra completed a five-year audit covering value-added tax (VAT) and income tax for the period under review and subsequently raised an assessment amounting to US$2,47 million and ZiG2,71 million.
“In March 2026 Zimra concluded a five -year tax review of 2019 to 2022 tax periods for Masimba Holdings Limited for the tax heads of Value-Added Tax and Income Tax. Zimra upon completion of the audit raised a bill of US$2 474 790 and ZiG2 708 056 being principal, interest and penalty for VAT and Income Tax for the period under review,” the company said.
“The bill raised by Zimra provided evidence of a liability that existed as at year end and therefore management adjusted the results for 2025 to reflect the liability in the December 2025 financial results.”
Zimplow was also assessed for additional taxes amounting to US$1,4 million and ZiG231 616 following disagreements with Zimra over the currency of tax settlement and tax computation methods.
“Differing interpretations of the law with Zimbabwe Revenue Authority regarding currency of settlement for tax and approach in tax computations; Zimra raised an additional income tax and VAT assessment for the period 2019 to 2022,” Zimplow chairman Benjamin Kumalo said.
- Inaugural Zim investor indaba highlights
- Stop clinging to decaying state firms
- ZB explores options to tackle inflation
- War over super car stuck in river
Keep Reading
“From the assessment, Zimra raised an additional tax obligation of US$1,4 million and ZiG231 616. The tax assessment was received in January 2026 and engagements with Zimra for a review on the assessment are underway.”
The developments have intensified debate around Zimra’s controversial “pay now, argue later” principle, which requires taxpayers to settle assessments before disputes are fully resolved.
Business leaders and tax specialists argue that the approach can place severe pressure on working capital, disrupt investment plans and create uncertainty for firms already operating in a challenging economic environment.
Legal experts have also expressed concern over the growing use of retrospective assessments, particularly in relation to VAT and tax obligations arising during Zimbabwe’s complex multi-currency era.
Critics contend that some assessments are based on interpretations that were not clearly established in legislation at the time taxpayers complied.
Several major companies have faced similar disputes in recent years, including Delta Corporation, Innscor Africa, Inamo Investments and Zimplats.
Zimplats is among the few firms to have successfully challenged a major assessment after securing a favourable ruling in January this year relating to historical royalty claims.
Despite the tax dispute, Masimba remains optimistic about its growth prospects.
The construction group ended 2025 with an order book valued at US$278 million and has approved capital expenditure of US$6,15 million for the current year, almost double the US$3,31 million authorised in 2024.
“Looking ahead, we remain confident in the fundamentals that support Masimba’s long-term growth. Demand for infrastructure across mining, energy, housing, transport, water, industrial and private sector developments remains significant,” chief executive officer Fungai Matahwa said.
“These opportunities align well with the group’s capabilities and strategic priorities. We are also mindful that the operating environment will continue to be challenging and will require careful management.”
Matahwa said the group would continue focusing on maintaining a strong balance sheet, prudent capital allocation, revenue diversification and disciplined project execution.
“Masimba enters the new financial year with a strong order book, an experienced leadership team, enhanced operational capacity and a more diversified project portfolio. These factors provide a solid platform for sustainable growth and continued value creation for shareholders,” he said.
At Zimplow, the tax assessment comes as the agricultural equipment manufacturer seeks to consolidate a recovery that saw its loss narrow by 77,34% in 2025, with key units, Mealie Brand and Farmec, returning to profitability.
The company said it had challenged the assessment and was engaging Zimra through formal channels.
“Zimplow disputes the basis of assessments and has engaged Zimra for an appeal. The matter is currently under review by the Zimra Legal Office,” the group said.
“Notwithstanding the ongoing dispute, management has entered into a payment arrangement with the Zimra Debt Office to mitigate enforcement risk and ensure continued compliance with statutory obligations.”
The group added that it remained financially sound and capable of meeting its obligations while pursuing its appeal.
