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The Zimbabwe Revenue Authority (ZIMRA) has impounded more than 100 high-end and luxury vehicles illicitly imported into the country. The tax authority is currently conducting a nationwide operation to target vehicles that were undervalued at ports of entry and those suspected of being in the country without the proper temporary import permits. These illegal practices result in significant losses of potential revenue for the tax authority each year.
During the operation, 118 vehicles were intercepted for various offences in Bulawayo and Harare. The joint enforcement activity is focused on violations such as temporary import permit violations, motor vehicle undervaluation, immigrant rebate fraud, suspension of duty on immigrants’ motor vehicles fraud, and year of manufacture fraud to circumvent license requirements. Zimra is determined to crack down on all violations of the Customs and Excise Act related to vehicles.
Zimra’s head of corporate communications, Mr. Francis Chimanda, emphasized that this operation serves as a stern warning to individuals involved in fraudulent practices at the ports of entry. Chimanda told <a href="https://www.sundaymail.co.zw/zimra-cracks-down-on-undervalued-vehicles">The Sunday Mail</a>:
<blockquote>
Currently, we are utilising roadblocks and patrols in a joint operation with other law-enforcement agencies.
We are doing post-clearance verifications in the Automated System for Customs Data.
We are also improving the presence of enforcement officers on the ground to enhance compliance, penalising offenders and collaborating with security agencies like the Zimbabwe National Roads Administration and Central Vehicle Registry.
</blockquote>
The tax authority will intensify its efforts to identify and penalize entities and individuals who undervalue vehicles. They are utilising roadblocks, patrols, and post-clearance verifications to enhance compliance and collaboration with other law enforcement agencies and security agencies.
ZIMRA aims to restore confidence in the country’s revenue collection system and create a fair and just economic environment by impounding vehicles and imposing fines on offenders. The thorough assessment and valuation of impounded vehicles will determine the accurate customs duty and taxes owed. According to tax expert Mr Tafadzwa Chingoma, this crackdown on undervalued vehicles and other customs violations not only aims to recoup lost revenue but also acts as a deterrent for future attempts at undervaluation and promotes a culture of compliance within the importation process.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

ZIMRA Impounds Over 100 Luxury Vehicles Illicitly Imported Into The Country

The <a href="https://www.pindula.co.zw/Zimbabwe_Revenue_Authority/">Zimbabwe Revenue Authority (ZIMRA)</a> has reportedly lost tax records dating back to six years ago, raising concerns over potential revenue leakages and tax evasion. It is speculated that the records may have been lost due to a server crash or a lack of a reliable backup system.
ZIMRA has requested its clients to resubmit their Pay as You Earn (PAYE) P2 forms, Value Added Tax (VAT), and Income Tax (ITC) records stretching to 2017, citing them as “outstanding”, although some clients claim to have already submitted the records.
Zimbabwe heavily relies on taxation to fund the fiscus, with taxes contributing 97.6% to government revenue in 2022.
<a href="https://newshubzim.co.zw/2023/06/20/zimra-loses-tax-records/">NewsHub’s Sofia Mapuranga</a> reports that ZIMRA’s head of communications, Gladman Njanji, did not respond to questions. Another official in the same department, Francis Chimhanda, requested the questions in writing but did not respond despite repeated reminders.
Economist Prosper Chitambara allayed fears over the possibility of financial losses due to the systems crash, stating that many companies are likely up to date with their tax records, so the impact on the state would not be significant.
The loss of tax records has raised concerns that current tax evaders may take advantage, resulting in significant revenue leaks. Zimra has admitted that tax evasion is limiting its revenue collection efforts. In 2021, Global Financial Integrity reported that Zimbabwe lost US$1 billion through under-invoicing in the past decade. The Zimra commissioner general, Regina Chinamasa, has also acknowledged that fraudulent conduct has resulted in the state being prejudiced of taxes and levies.
A consultant handling the financial services of over five companies has expressed concern over the risk of firms indicating arbitrary figures to satisfy compliance, potentially prejudicing the state. Tax-related corruption, such as direct tax evasion and under-declaration, is common in Zimbabwe.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

ZIMRA Lost Tax Records Triggering Fears Of Revenue Leaks And Tax Evasion

The Zimbabwe Revenue Authority (ZIMRA) is owed $4.5 billion in tax arrears by companies, some of which are owned by top politicians and business people with links to high ranking officials, a Zim morning Post report claims. A ZIMRA official who spoke to the Post had this to say:
<blockquote>ZIMRA is losing a lot of money and some companies opt to ZIMRA losing billions to tax evaders pay bribes to some officials just to avoid paying hefty tax fees.</blockquote>
ZIMRA has also called upon Small to Medium business enterprises to pay up their dues. A ZIMRA official said:
<blockquote>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.</blockquote>
Tax evasion is said to be rampant in Zimbabwe as it is committed especially by the top brass who are part of the political/business complex.
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<h4>More: <a href="https://zimmorningpost.com/zimra-losing-billions-to-tax-evaders/" rel="noopener noreferrer" target="_blank">Zim Morning Post</a></h4>

ZIMRA Loses $4.5 Billion To Tax Evasion - Report

Prophetic Healing and Deliverance (PHD) ministries has been charged for breaching Value Added Tax (VAT) regulations on nearly $29 million. The State says the money was generated from the sale of church wares over four years.
Magaya was absent from the Harare Magistrates’ Courts yesterday where the matter was remanded to February 28 for trial. The complainant in the matter is the Zimbabwe Revenue Authority (Zimra) which was represented by its chief investigations officer, Tinashe Madakadze.
The State says PHD raises revenue from selling church regalia, anointing oil and holy water, as well as from a guest house which is widely known as Yadah Hotel. Prosecutor Peter Kachirika alleged that sometime in October 2018, Zimra had conducted tax investigations on PHD and recovered financial statements from the church for the period 2013 to 2017. Zimra had also recovered financial statements from the Commercial Bank of Zimbabwe, which were submitted by PHD for a loan application.
The statements showed that PHD had allegedly made sales amounting to $28,7 million between 2013 and 2017. It was further alleged that during the same period, PHD had paid remuneration amounting to $950 522 to the clergyman’s wife, Tendai Magaya. The State also accused PHD of also transferring remuneration of US$2,4 million to Magaya’s own bank account without paying the due Pay As You Earn (Paye) tax.
More: <a href="https://www.dailynews.co.zw/articles/2019/02/17/the-popular-preacher-paid-a-700-fine-for-the-offence-magaya-s-phd-in-court-over-29m-vat">Daily News</a>

Magaya's Church In Court Over $29 Million Tax Evasion

According to the UK newspaper MailOnline, the foreign office recently named and shamed 23 foreign embassies and diplomatic organisations which owe more than £1.5 million in unpaid tax.
Top of the list of shame is the embassy of Sudan, with Iran and Zimbabwe in second and third place respectively. According to the MailOnline, diplomatic missions are exempt from national, regional or municipal taxes. They are however, encouraged to pay a portion of their bill, equating to just 6 per cent of what a normal firm would fork out.
Zimbabwe’s embassy, which occupies a Grade 11-listed building in central London, reportedly owes £101,694 (about US$129,000) in business rates. Government officials in Harare had not responded to NewZimbabwe.com’s questions. The business rates should have been paid 12 months ago.
More: <a href="https://www.dailymail.co.uk/news/article-6543437/Foreign-Office-names-23-embassies-including-Iran-Sudan-Zimbabwe-owe-UK-1-5million-taxes.html">MailOnline</a>, <a href="https://www.newzimbabwe.com/uk-zimbabwe-embassy-shamed-for-dodging-tax-owes-us129000/">NewZimbabwe.com</a>

Zimbabwe Embassy Shamed For Not Paying Tax, Owes UK US$129,000

In a speech read on his behalf yesterday, Secretary for Finance and Economic Development George Guvamatanga directed the Zimbabwe Revenue Authority (Zimra) to widen revenue collection measures including pursuing individuals who evade paying taxes.
The speech was read by the finance ministry’s chief economist, Mr Kudakwashe Mudereri, during a media briefing on Zimra’s five-year strategy (2019-2023). Said Guvamatanga:
<blockquote>We cannot have a situation where a few rich individuals who do not pay taxes are sustained by hardworking individuals who religiously pay taxes. In Statutory Instrument 246 of 2018, the Government may issue an ‘unexplained wealth’ order in respect of properties with no full disclosure. We expect Zimra to aggressively carry out lifestyle audits to flush out individuals who acquire ill-gotten wealth and those who create wealth without paying taxes.</blockquote>
More: <a href="https://www.herald.co.zw/zimra-targets-ill-gotten-wealth/">Herald</a>

Zimra Directed To Target Rich Individuals Who Do Not Pay Taxes

The Zimbabwe Revenue Authority (Zimra) has shut down Veleez, a Chinese firm which manufactures blankets for evading paying duty and taxes. The firm and some other Chinese firms are accused of using wrong tariff codes as well understating and undervaluing goods in order to avoid paying duty. Zimra shut down the company after getting a tipoff from a whistleblower. A source told NewsDay,
<blockquote>They have a shop in town at the corner of Rezende and Bank [streets] and it was noted that they were selling blankets. As such, they were followed back to Southerton by the person who tipped-off Zimra, who spoke to some people and confirmed that the company makes blankets, bread and water, then Zimra was called.</blockquote>
More: <a href="https://www.newsday.co.zw/2017/06/16/zimra-shuts-chinese-firm/">NewsDay</a>

Zimra shuts down Chinese blanket company for evading taxes and duty

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