The Zimbabwe Revenue Authority (Zimra) would like to advise the public that the Voluntary Disclosure Programme is still going on and will end on December 31, 2018.
Any persons that have failed to make voluntary disclosures on omitted income and other tax compliance obligations are encouraged to take advantage of the Voluntary Disclosure Programme, which is still open.
What is Voluntary Disclosure?
An incentive put in place by the Commissioner General of the Zimbabwe Revenue Authority (Zimra) through Public Notice 22 of 2018, where taxpayers and importers are granted full remission of penalties and fines as part of an ongoing programme, notwithstanding the expiry of Tax Amnesty on Voluntary Disclosure of any omitted income and other tax obligation. This was put in place to encourage compliance and to enable clients to regularise any outstanding obligations. Penalties, civil penalties and fines are waived in full and the outstanding debts are paid on agreed terms.
Who can Apply?
Any person can make a Voluntary Disclosure. This includes individuals, companies, associations, partners, partnerships, trusts, sole proprietors, small businesses, large businesses, local businesses, foreign business, and non-residents, among others.
Validity of Voluntary Disclosure
Applications for voluntary disclosure started from July 1, 2018 and will end on December 31, 2018.
Voluntary Disclosure items
Any person who omitted any amounts of income from returns submitted can make a Voluntary Disclosure. The returns are for the period June 30, 2018, going back to any such period the income was omitted;
Any person who failed to comply with tax obligations can also make a Voluntary Disclosure. The tax obligations include registration, submitting returns on time, making payments on time, maintaining records and information, fiscalisation of operations, among others;
Any person who failed to declare goods and or services for duty purposes can also make a Voluntary Disclosure;
Where the taxpayer is in doubt of the way they are treating transaction for tax purposes and require an opinion from Zimra.
Any issues that are already known by Zimra should not be included in the Voluntary Disclosure;
The disclosure does not include refunds not claimed;
Any person who is under audit or investigation and has passed the stage of an initial interview.
Requirements for making Voluntary Disclosure
A full disclosure should be made in the application form. Where information is not fully available estimates can be made and explanations/justifications given;
A Voluntary Disclosure Form should be completed and submitted to the nearest Zimra offices stating the omitted income and other compliance obligations not complied with;
Voluntary Disclosures should be made before the Initial Interview is carried out for persons notified of an audit or investigation;
The application shall include a proposed payment plan with justification for the proposal;
Outstanding registration, returns or information should addressed by December 31, 2018.
Zimra shall consider applications and respond within 30 days;
Clients are permitted to provide any additional information during processing;
Clients shall pay the tax due over the agreed payment plan period.
Penalties, civil penalties, fines and additional tax shall be waived in full;
Outstanding tax debts are paid on agreed payment terms;
Business is free from the burden of non-compliance;
Access to tax clearances is opened for compliant taxpayers;
Business managers and owners can focus on running their businesses thereby reducing costs of compliance.
NB: The interest on outstanding debts remains due and payable.
Assurances to Applicant
The information voluntarily disclosed shall not trigger an audit, investigation or prosecution;
The Voluntary Disclosure benefits shall be withdrawn where the client fails to honour payment arrangements agreed on with Zimra, without seeking for alternative agreement payment arrangements.
For more information, please approach your nearest Zimra Office.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.