Munyaradzi Musiiwa, Sunday News Reporter
The Zimbabwe Revenue Authority (Zimra) has warned business operators who have not been declaring sales made in foreign currency in order to short change the taxman by harvesting hard currency that they will not be issued with tax clearance certificates for 2021.
Speaking during the sponsored dinner at Institute of Chartered Secretaries and Administrators annual conference, ZIMRA Commissioner General, Ms Faith Mazani said some businesses were not recording transactions being tendered for in foreign currency and where transactions have been recorded, part or all the foreign currency tendered is not being declared for tax purposes.
Ms Mazani said all business trading in foreign currency but not declaring sales risk not being issued with tax clearances next year over and above the charging of penalties and interests, prosecution as well as naming and shaming non-compliant sectors.
“In line with SI 185 of 2020, ZIMRA issued a Public Notice No. 40 of 2020 addressing certain business malpractices. Among the observations made, ZIMRA noted that some businesses are not recording transactions being tendered for in foreign currency. Where transactions have been recorded, part or all the foreign currency tendered is not being declared for tax purposes. Transactions in foreign currency are being written in manual registers. Operators are receiving foreign currency from their customers and issuing them RTGS receipts.
“Today (Thursday) in his budget statement the Minister of Finance and Economic Development (Professor Mthuli Ncube) reiterated the concern for noncompliance with the law of paying taxes in the currency of trade. He has therefore announced more stringent measures in this respect – all registered operators who are not properly fiscalised will not be issued with a tax clearance certificate for 2021,” she said
Ms Mazani said some of the businesses were not banking foreign currency earned from sales thereby prejudicing Government of potential revenue.
“Foreign currency tendered is not being banked. Parallel manual invoicing is being used for recording transactions involving foreign currency, and such invoices are not declared for tax purposes. There are stand-alone tills, which are not configured to the ZIMRA fiscalisation system. Some traders have created back offices and banking halls where forex payments are being received but not receipted nor declared on returns. Offline separate systems are being kept for transactions involving foreign currency,” she said.