The Zimbabwe Revenue Authority (ZIMRA) encourages churches and other religious organizations to review their tax affairs and make voluntary disclosures where there is any income omitted from returns submitted or where there are any tax obligations that the taxpayer may not have complied with.  The intention is to encourage voluntary compliance from churches and other religious organizations and avoid being charged penalties, which affects business operations.

Churches and other religious organisations who omitted or failed to declare any amounts of income on returns submitted should make a voluntary disclosure. The following circumstances require churches and religious organizations to pay tax.

Income Tax on business profits

This tax is payable on business profits, that is, income derived from or deemed to be from a source within Zimbabwe. The receipts and accruals of church or religious organizations are exempt from Income Tax only to the extent of donations, tithes, offerings or other contributions by its members. Incomes from other activities such as selling of items such as reading materials, wristbands, renting out properties and others are subject to Income Tax.

Employees’ Tax (PAYE)

Every person who becomes an employer is required to register for Pay As You Earn (PAYE) within 14 days of becoming an employer. A church may qualify as an employer if it pays any type of remuneration such as salary, wage, allowance, among others, to its employees who administer church activities. In this case the organisation is required to deduct the correct PAYE every month according to the tax tables and remit it by the 10^th of the following month.

Value Added Tax (VAT)

This is an indirect tax levied on goods and services. Churches or religious organisations may qualify to register for Value Added Tax (VAT) if the total value of taxable supplies made in the period of twelve months exceeds $60, 000.  VAT payable should be remitted to ZIMRA by the 25^th of the following month. Church organisations are not exempt from the payment of VAT when they purchase goods or services which are subject to VAT.

Withholding Taxes

There are a number of Withholding Taxes chargeable in terms of the Income Tax Act. Examples are Non-Residents Tax on Fees, Non-Residents Tax on Royalties, Non-Residents Tax on Remittances and Withholding amounts payable under contracts. A church or its paying agent is expected to withhold the tax and remit it to ZIMRA in cases where a payment is made. Withholding taxes are supposed to be remitted by the 10^th of the following month after payment or a deemed payment is made.

Reminder for VAT Due Date

Our valued clients are hereby reminded that the VAT for the month of October 2018 is due on or before the 25th of November 2018.

This article covers the Voluntary Disclosure programme that is running until December 2018 in as far as it refers to offences relating to the Customs and Excise provisions. ZIMRA has recorded a number of various offences under Customs and Excise. Based on this background, the Authority is encouraging any individuals who either have knowingly or unwittingly committed or omitted acts that are against the provisions of the Customs and Excise Act to voluntarily disclose such acts.

 Common Offences under the Customs and Excise Act

Wrong application of Customs Procedure Code (CPC)

Customs Procedure Codes are designed to enable importers to distinguish their importations for purposes of benefiting from specific rebates or duty waivers and suspensions. For example, if goods were entered for home use by the government, they would use the full CPC 4000 403 whilst if goods were re-imported after previous temporary exportation for repair under guarantee they would use the full CPC 6021 602. The effect of both CPCs would be to suppress customs duty. Incorrectly applying a CPC can lead to an irregularity that can lead to underpayment of duty. This can be formalised by way of utilizing the Voluntary Disclosure facility. Where a disclosure is made in respect of such irregularities any duties that should have been paid at the time of entry become payable whilst there will not be any penalties raised and payable. Interest due on the duties will however be payable.

Undervaluation of goods

There can be cases of importations that were made using values that are less than the price actually paid or payable for the goods. Some of the instances include importations made using false invoices or making false representations and forgery that lowers the values of the imported goods. Whilst these are serious commissions, ZIMRA will waive penalties that would be payable if the importer has disclosed the transactions voluntarily. Interest and additional duties will however be collected. Importers who voluntarily disclose transactions involving these acts of non-compliance will not be subjected to any scrutiny as a result of the disclosure.

Incorrect Tariff Classification

Importers may have knowingly or unknowingly used incorrect tariff classifications resulting in underpayment of duties. Such underpayments can be regularised through using the voluntary disclosure programme. Any fines which would have been payable due to the incorrect tariff classification will be dispensed of and only the duty and interest on the duty will be payable.

Other Offences

Other offences include undue claim of preferential treatment where the origin of goods is falsified, production of illicit alcoholic beverages that are subject to excise duty, smuggling where ZIMRA has no record of the importations, warehousing irregularities including Excise manufacturer’s understatements of production figures, etc. All these irregularities qualify for waiver of penalties if the importers and Excise Manufacturers voluntarily disclosure subject transactions.

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

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My taxes, my duties – building my Zimbabwe!

Registered Occupational/Industrial Psychologist

M.Sc. in Occupational Psychology University of Zimbabwe (2005)

Post Graduate Diploma in Occupational Psychology University of Zimbabwe (2001)

B.Sc. (Psychology) Honours - Upper Second Class (2.1) University of Zimbabwe (1996)

Diploma in Labour Relations IMPZ (1996)

CURRENT BOARD APPOINTMENTS AND EXPERIENCE 

1. Non-Executive Director – Schweppes Zimbabwe- July 2015 to date
2. Board Member(Part-time) – Health Services Board – July 2018 to date
3. Non- Executive Director – Zimbabwe Revenue Authority January 2019 to date

EXPERIENCE RECORD

1. Industrial Psychology Consultants (Pvt) Ltd (March 2004 to date) Managing Consultant
2. Rapid Financial Holdings, Zimbabwe (Dec 2002 to Feb 2004)

Group Human Resources Manager

3. Ernst & Young, Harare, Zimbabwe (July 2001 to Nov 2002)

Senior Human Resources Consultant

4. Ernst & Young, Harare, Zimbabwe (1999 - June 2001)

Human Resources Consultant

5. B H P Minerals Zimbabwe, Selous, Zimbabwe (1997 – 1999)

(Graduate Learner/Human Resources Officer)

6. Turnall Fibre Cement (Pvt) Ltd, Harare, Zimbabwe (1997)

(Personnel Assistant)

SUMMARY OF KEY HANDS ON EXPERIENCE (21 years of experience)

Memory has extensive experience in strategic planning and human resources management in both line function and consultancy services. He has assisted clients in the private, state enterprises and NGO sectors in Zimbabwe, Zambia, Malawi, Tanzania, Botswana, Mozambique, amongst others. He is currently focusing on helping clients:

• Develop robust business strategies that can help them remain competitive in a dynamic operating environment
• Identify the best talent for current and future positions
• Measure productivity and develop productivity enhancement mechanisms 
• Analyse human resources data and use the same data to predict company performance
• Design workforce plans that survive economic cycles (downturn and upturns)
• With the assistance of statistical models use historical human resources data in the client organisation to predict which employees will succeed and fail, which employees are likely to leave the organisation, which employees are likely to commit disciplinary offences, which employees are likely to behave unethically, which employees are prone to accidents, which human resources process drive revenue growth and customer satisfaction. He assists the same clients come up with sustainable interventions to mitigate identified risks.
• Lay the foundation for building productive work teams using such methods as the MBTI and Team Climate Inventory
• Develop training programs for clients and assess the effectiveness of these programs in assisting client organisations succeed