via Mutare City Council implicated in tax evasion scam | The Source. 20 June 2014
MUTARE, June 19 (The Source) – Mutare City Council is spending about $2,4 million in allowances designed to hide earnings from the taxman since 2012, an audit has shown.
The audit was conducted by the Urban Development Corporation (UDCorp) and presented to councillors on last month. The report, seen by The Source on Thursday, showed that 11 managers pocketed over 200,000, in non-taxed monthly allowances, which amounted to $2,4 million in 2012.
Town clerk Obert Muzawazi reportedly receives $32,252 in non-taxed monthly allowances, while the human resources manager Aaron Chemvura and acting health officer Simon Mashavave are reportedly pocketing $22,867 and $19,480, respectively.
“Audit examination revealed that the following benefits were not disclosed on payroll for tax purposes; holiday allowances, rentals, school fees, electricity allowance and housing benefits,” said UDCorp in the report.
“Council is violating a statutory requirement and this is a tax evasion. Prejudicing the tax authority results in the accrual of a tax liability that will negativity affect the council’s cash resources as the Zimbabwe Revenue Authority (ZIMRA) can garnish the organisation to recover the debt accrued in the form of unremitted on tax fringe benefits.”
UDCorp said the council was violating the Chapter (23:06) section 8 of the Income Tax Act that binds the employer to disclose all the fringe benefits accruing to the employees, noting that Zimra had carried out an audit on the council last year and made a similar observation.
Mayor Tatenda Nhamarare said the council has yet to discuss the report.
“I cannot comment on the report until it has been discussed by the full council meeting. It was presented to the council’s committee meeting which is still deliberating on it,” he told The Source.
Last year, the council recorded a budget overrun of 63 percent, spending nearly $30 million against the projected $19 million while missing its revenue collection target, which Nhamarare blamed on overstaffing and debts.
COMMENTS
I am surprised that i am the first to comment on this, these local authorities need very close scrutiny….
Ho Ho HO – there was an article on this site as follows:-
Thursday 12th June 2014 headed ZIMRA Raid Bulawayo businesses
Zimbabwe Revenue Authority (Zimra) Bulawayo branch has launched a tax blitz on city firms and closing tax evaders.
Close to 30 officials raided Parkade Centre today demanding tax from shop operators.
Shops found wanting are being shut down but alert shop owners closed before officials arrived.”
“They are demanding tax forms and they are telling us to shut down if we don’t have or face arrest. We don’t keep the forms here.” said one salon owner.
Presence of Zimra officials has attracted a huge crowd of onlookers.
These must be small business that were affected
are they going to close this authority down ho ho ho ho
Bet you the geriatic and his wife and all those buffoons at top who own vast businesses they have started and grabbed are not paying their taxes
Mutare City council should be serious in service delivery rather than concentrating in shaddy deals. Residents are facing harsh problems which are not being addressed, the water situation is worse. Residents are neglected. We are not getting water yet the city authorities ignores. If we raise a complain, they just ignore, yet they are charging an estimated water charge monthly and we pay, what for, just to line their pockets. Corruption is their order of the day, if you near a council employee, they will make sure to block other water pipes inorder to supply their counterparts with plenty of water right round the clock disadvantaging other residents. This is happening in Dangamvura suburb. Some areas in Dangamvura are not getting water supply because of these deals. The middle grade are too corrupt, some who are responsible in allocating the water are even receiving bribes inorder to supply individual houses and block other areas, if we complain they just lie telling us of the high ground, even if houses are on high ground they should devise a plan inorder to serve all residents fairly, that is the duty of engineering to find a solution not just ignoring people. What do they expect people to do. They waste time and money even resources achieving nothing, they are there because of residents they are suppose to serve. Please the responsible authorities do something about this situation.