Zimbabwe’s tax agency says it will start attaching properties belonging to defaulters to recover up to $2.5 billion in unpaid taxes spanning back to 2009.
The Zimbabwe Revenue Authority (ZIMRA) acting commissioner, domestic taxes Regina Chinamasa, told journalists today that the authority was this year targeting to recover at least 20 percent of the tax debt.
“We try to create a balance in our debt recovery measures, in as much as government wants money we are also cognisant of the fact that companies need to survive. We ask them to come up with payment plans so that they liquidate their debt,” Chinamasa told a tax seminar.
ZIMRA Acting Commissioner General Happias Kuzvinzwa said: “We can only garnish you and we can attach moveable property but you have not heard of ZIMRA attaching property, all you have heard up to now is the garnishment. Our patience is soon running out, we will start attaching property for unpaid taxes”.
In 2016, ZIMRA collected $1.11 billion in outstanding debts.
The Corporate Income Tax debt last year went up to $751.49 million from $474.97 million in 2015 while the Pay as You Earn debt was $662.16 million from $591.89 million in 2015.
In October 2014, ZIMRA gave an amnesty to defaulters to allow them to regularize and catch up on tax payments but the authority said the response was underwhelming.
Last year annual gross collections amounted to $3.4 billion, falling four percent short of the $3.6 billion target.– The Source