In an effort to encourage our valued clients to regularise their tax affairs, Government has, through the Finance Act (No 2) of 2014 published on 17 October 2014, made provisions for the granting of a tax amnesty to persons on application.

Persons include companies, corporate or incorporated body of persons and trusts. Tax amnesty is relief granted on penalty, interest and prosecution.

What period is covered by the tax amnesty?

The period covered by the amnesty (which is referred to as the “amnesty period”) is from the 1st of February 2009 to the 30th of September 2014. Only offences that were committed within the specified dates will be covered by the tax amnesty. Any offences committed outside the specified period will not qualify for the tax amnesty.

When should a person apply for the tax amnesty?

A person who is or may become liable for interest, penalty or prosecution for offences committed within the amnesty period as defined above can apply for tax amnesty any time from the 1st of October 2014.

Which taxes are covered by the tax amnesty?

The amnesty covers taxes and irregularities.

Examples of taxes are:

Employees Tax (PAYE),

Income Tax,

Value Added Tax,

Withholding Taxes,

Presumptive Tax,

Capital Gains Tax,

Customs

Excise Duty, licences for Bonded Warehouses and Private Sidings, Royalties and other fees.

Examples of irregularities are:-

Non- or under-declaration of sales or capital gains resulting in less taxes being paid

Undervaluation of imported goods

Non-payment of duty on imported goods

Non-payment of Income Taxes, Presumptive Tax, VAT and Capital Gains Tax as well as failure to remit any taxes withheld

Failure to adhere to conditions of the operation of a bonded or private siding

Non-submission of returns

Who qualifies for the tax amnesty?

Any person who is or may become liable for any interest, penalties or prosecution in respect of any tax irregularities for offenses which occurred during the amnesty period is eligible for the amnesty when he makes full disclosure and makes application for tax amnesty.

However, persons will not qualify for amnesty in respect of issues already covered in completed or ongoing audits and investigations or other enforcement activities by ZIMRA not covered by this amnesty.

How and where do you apply for the tax amnesty?

Persons who wish to apply for the amnesty must:

Complete the application Form TA01, obtainable from the ZIMRA website www.zimra.co.zw.

Ensure the form is completed legibly in indelible ink and not pencil

Submit the application to their nearest ZIMRA office

Where payment may be involved, the application must be submitted well in time to enable the Commissioner to examine the returns and issue any assessments for taxes payable.

Payment of the covered tax due

Where an application has been approved and tax amnesty has been granted, the applicant shall be required to complete a Payment Schedule Form (TA02) indicating how he/she wishes to settle the amount owed, taking into consideration that full payment should be made by the 31st of March 2015.

Circumstances where the amnesty application will not be considered

An application for amnesty shall not be considered:-

Where the application is in respect of any seizure, forfeiture or detention of any property or goods.

Where the application is in respect of any tax irregularities already known to ZIMRA for which the applicant had been notified.

Circumstances where the amnesty will be withdrawn

Amnesty granted may be withdrawn for the following reasons:-

Failure to adhere to the payment terms as agreed on the payment schedule.

Where it is established that the applicant submitted any false information in the application.

To contact ZIMRA: Visit our website: www. zimra.co.zw, Follow us on Twitter: @Zimra_11, Like us on Facebook: www.facebook.com/ZIMRA.11, Send us an e-mail:[email protected], Call us (Head Office): 04 –758891/5; 790813; 790814; 781345; 751624; 752731