ZIMRA comes for companies that lie about forex income

Zimbabwe Revenue Authority (ZIMRA) said it has set a deadline of December 31, 2021 for all companies to voluntarily declare their inflows of foreign currency. After this date, the authority says that there will be severe penalties for the fugitives.

ZIMRA statement on forex statements is as follows

Falsification of Forex statements

The Zimbabwe Revenue Authority (ZIMRA) has noted with concern that there are traders who tamper with their financial records. ZIMRA therefore urges all companies to come forward and voluntarily disclose any underpayment or non-payment of tax by December 31, 2021 in order to avoid rigorous audits, prosecutions and sanctions which will be instituted shortly. time after the deadline. Taxpayers are encouraged to take advantage of this window by making voluntary withdrawals and payments afterwards.

Ongoing audits have revealed that:

a) Some businesses sell goods and services in foreign currencies but do not report any of their transactions in foreign currencies for tax purposes, as required by law.

b) Some companies transact in foreign currencies but convert these transactions into Zimbabwean dollars for tax purposes.

c) Some businesses transact in foreign currencies but report only a very small portion of their sales in foreign currencies when paying their taxes.

d) Some companies sell directly in foreign currency without receiving the received foreign currency and do not include these sales when paying tax.

e) Some businesses receive foreign exchange transactions manually when in fact businesses have the capability of the computer assisted system to receive in trade currency. The proceeds from these manual receipts are not reported for tax purposes.

f) Some companies that make sales in foreign currency using back-offices with stand-alone computers and the receipts that are received are not reported for tax purposes.

g) Some companies have outlets specifically designated for foreign exchange transactions which are hidden and sales recorded from these machines are not reported to ZIMRA.

For any clarification regarding the payment of the tax in foreign currency, please contact your new ZIMRA offices. Taxpayers are required to use this window period to come forward and make voluntary disclosures to avoid unnecessary penalties and possible prosecution if they are found on the wrong side of the law.

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