GOVERNMENT has agreed to extend the tax amnesty window for companies to the end of June, hoping that more businesses would declare their tax liabilities.
This followed a request from professional accounting bodies who wrote to Finance Minister, Patrick Chinamasa, a fortnight ago seeking extension of the tax amnesty period which expired last month.
The accountants had said that many delinquent taxpayers were anxious to have the tax amnesty period extended.
The Financial Gazette revealed a fortnight ago that accounting bodies had requested the extension on behalf of troubled firms.
Now, we can report that this request has been granted.
The tax amnesty allows delinquent tax payers to settle their tax debts without having to pay penalties or interest on account that they voluntarily inform the tax collector of their obligations.
A senior official with the Zimbabwe Revenue Authority (ZIMRA) confirmed the development on the sidelines of an accountants conference organised by the Public Accountants and Auditors Board last week.
“The Minister of Finance and Economic Development has kindly accepted to extend the tax amnesty to June 30, 2015,” said Robert Mangwiro, ZIMRA’s director for finance, corporate planning and modernisation.
“We received very few applications. Companies should now take advantage of the tax amnesty window period extension and come forward in large numbers,” he said.
Government had originally set March 31 as the deadline for delinquent taxpayers to come forward and declare their obligations.
But there was poor response to the amnesty, and analysts said this could have been due to insecurity.
ZIMRA introduced the tax amnesty late last year, hoping to collect millions of dollars from tax evaders through voluntary submission on account of forgiveness for a tax delinquency.
The amnesty, the first of its kind in this country, covers tax offences committed during a six-year period between February 2009 and September 2014.
Taxpayers granted amnesty would only pay the principal sum owed, free of interest, surcharges and penalties and agree on a payment plan up to December 31, 2015.
Many companies are either on the verge of collapse or have closed completely, rendering thousands of workers jobless and adversely affecting revenue collection.
Apart from company closures that claimed thousands of jobs, the country’s frail economy has suffered knocks from retrenchments.
Furthermore, it remains difficult for the remaining few companies that are still operating to comply with tax demands.
ZIMRA offered the tax amnesty in an effort to persuade tax evaders to come forward with undeclared tax liabilities.