via Govt won’t stop tax raids: Chinamasa – DailyNews Live 29 July 2014
HARARE – The Zimbabwe Revenue Authority (Zimra) will continue issuing garnishee orders to companies that evade tax, Finance minister Patrick Chinamasa has said.
He told Parliament last week that “Zimra’s mandate is tax collection and the revenue collector will do all it can to fulfil this mandate.
“Although Cabinet has not deliberated on Zimra garnishee orders, Zimra is given a mandate in terms of the statute that sets it up and that mandate is to collect revenue,” the Treasury chief said.
This comes as Zimbabwe is hard pressed after failing to secure budgetary support, and is footing its wage bill and recurrent expenditure from tax collections.
“Unless Zimra collects taxes, there will be no budget,” Chinamasa said.
“What we should say is not to discourage Zimra from collecting taxes, but to encourage them and also to give advice that when doing so, while being firm, they should be friendly,” he said.
The former Justice minister was responding to a question by Gweru legislator Amos Chibaya about the tax collector’s garnishee orders that are seemingly leading to company closures.
“We all know from Biblical times that tax collectors are never a liked class. They are always despised and you can read that throughout the Bible. I understand the concerns of people who are being levied taxes. Generally, people do not like to pay taxes,” Chinamasa said.
Early this year, the Gershem Pasi-led Zimra descended on companies defaulting on their tax obligations, imposing garnishee orders on their bank accounts.
Of these defaulting companies, over ten have dragged the taxman to the Fiscal Court of Appeal over the orders.
Despite some companies voluntarily disclosing their arrears to the tax collector and proposing payment plans, they were not spared the garnishee orders.
Other companies have approached the High and Constitutional Courts after the filing of their appeals at the Fiscal Court of Appeal failed to bar Zimra from garnishing their accounts.
Recently, Pasi said garnishee orders were only used as a “last resort” for “truant and noncompliant clients”, and was not the modus operandi of Zimra in collecting revenue.
He also said Zimra will soon launch a scheme to issue garnishee orders to State enterprises.
COMMENTS
Chinamasa’s reference to tax collectors very clever, except when you delve into the reasons for the dislike of tax collectors. From the beginning of time the people known as tax collectors or Publicans have gone around an in ignorance, collected sums of money from people and businesses not understanding or caring how the collection affects the person or business. In good times more is collected and if everyone is prosperous then there is not to much aggravation. However in hard times there has never been a tax collector that has adapted,they carry on like they always have. Not understanding that in doing so they literally kill the goose that lays the golden egg. Exactly the situation that is being faced by Zimbabwe, and as more businesses close more pressure will be applied to the remaining companies making it even harder to survive. How about the Government adapting get rid of some of the dead wood those that sit and play cards on the computer replaced with a multi tasking driven personality. ministers portfolios cut down and merged. Ministers without Portfolios given the boot as they are just hangerson for the pay. And for god sake replace these Ministers with people that have the country of Zimbabwe at heart instead of there pockets!!!
One way to increase foreign investment would be to reduce taxes,I know this would reduce revenue in the short term, but in the long term it would actually increase revenues as more companies would their head offices to Zimbabwe to take advantage of the tax benefits.
You think any of these thickheads understand a word you say?
Must understand people and business paying tax are paying to have the country run. if it is not run properly why should they pay Tax.
Money in exchange for service!!! Even if you not a voter and you don’t dabble in politics if you pay tax you have a right as to how the country is to be run!
The number one tax dodger in the country is Robert Gabriel Mugabe closely followed by the likes of Gono, mnangagwa, Mujuru, Chombo. Let us see these robbers pay their fair share. Garnishing their bank accounts would be a good start followed by prosecuting them for illegal externalisation of funds. Short of this Zimra is conducting a witch hunt, practicing punitive punishment against those who are already the victims of ZANU criminality.
Why not arch fraudsters kaukonde chiyangwa mliswa koumides
ZIMRA (and NSSA) MUST be required to obtain a court order to garnishee money from private and company accounts.
This will allow companies to contest Zimra garnishee orders where legitimate differences of opinion exist.
Without the requirement of court saction, Zimra (and Nssa) garnishee orders are just a form of theft.
It amazes me that Zimbabwe has these ministers like Obert Mpofu who claim to be such clever business men and buy banks, hotels etc. and pay little or no Tax. No wonder no one likes to pay tax.
I would also like to see tax remittance of the self declared million”rich” Obert Mpofu. People why we dont just not bank the money. lets store our monies in singapore,malasia,hong kong etc and everytime we want to make a withdrawal we go for medical check ups period.The next thing following is just to garnishee everyone’s bank account,cause according to ZANU everyone owes taxes.Dont bank your usd
May the Lord uncover every single theft and plunder among this lootocracy. Zimra should be starting at the top and working down.