ZIMRA losing billions to tax evaders

Zimbabwe Revenue Authority (ZIMRA) is losing billions of dollars in revenue to companies who are evading tax, Zim Morning Post can reveal.

This publication is reliably informed that ZIMRA is owed $4.5 billion in tax arrears by companies who are reluctant to pay tax.

Some of the companies are owned by government ministers, top politicians and   business people with strong links to the high ranking officials.

“ZIMRA is losing a lot of money and some companies   opt to ZIMRA losing billions to tax evaderspay bribes to some officials just to avoid paying hefty tax fees,” said an insider at ZIMRA.

Small enterprises and co-operatives have also being caught in the dragnet as they evade tax by not registering.

“Small enterprises and co-operatives should register with ZIMRA and desist from tax evasion by virtue of their not being registered. Such practices are illegal and once ZIMRA catches up with you there will be a lot of penalties involved which could result in the closure of some organisations,” warned a top ZIMRA official.

The official ZIMRA website also confirms the massive tax evasion and payment of bribes.

“The Zimbabwe Revenue Authority (ZIMRA) is encouraging members of the public to be tax compliant citizens who proudly pay taxes on time and in full, Paying taxes and duties promotes the economic development of our beautiful nation, paying bribes, tax evasion, corruption, smuggling and all forms of underhand dealings curse and destroy the nation,” reads a message on the website.

ZIMRA is mandated by an Act of Parliament to clamp down on tax defaulters.

Efforts to contact ZIMRA commissioner general Faith Mazani hit a snag as her mobile phone was not reachable at the time of writing on Wednesday.

NB: Zim Morning Post will publish a list of the companies fingered in tax evasion on Thursday.