Today I thought business insights should be on ZIMRA Public Notice 7 of 2021. Kindly share this insight with your acquaintances.

A lot of individuals & small to medium businesses are not worried about taxes and books of accounts. I bet if you have a tax clearance without supporting books of accounts done by a competent accountant ,you are not doing it right somewhere.

The only time you will realize is when you have that one big transaction that will put you on a spot light followed by a ZIMRA call to congratulate you and audit you simultaneously. I guess this is the day you will call an accountant like me(0718 080 008) or someone of similar competence.

Well lets diagnose why you are in a potential tax mess :

A tax clearance simply means all your tax affairs are in order. You have prepared books of accounts ,competently assessed all your tax heads i.e. PAYE,VAT,CGT,WHT & IT , filled returns and paid taxes due on time, in the  correct amounts and currencies.

If the above is not the case ,you may have registered a company through an agent who helped you to get a ZIMRA BP number and your first tax clearance without telling you what it means going forward.

The burden of proof on tax clearance issuance is on the tax payer and it should be readily available for ZIMRA  inspection for at least 6 years. Visit the link below to see for yourself.

https://www.zimra.co.zw/domestic-taxes/corporate/new-businesses

Stop the short cuts and do things right. Your taxes your responsibility. You don’t deserve backdated penalties and interest charges. Do it right the first time. Question yourself if ,your business is fit to have that tax clearance you hang on your wall and show around.

I hope this article will help you guys. In God we trust. Get in touch with me on 0718 080 008 or on www.shaphat.com if you need help.

Please note that Holderness writes in his own capacity. These are my opinions .

Article by : H Magaragada CA(Z),RPAZ