There is need to continuously review
strategies and strengthen fiscal laws in order to plug leakages that
deprive the government of much needed revenue, a cabinet Minister has
said.
Finance and Investment Promotion Professor Mthuli Ncube said this in a
speech read on his behalf by the Information, Communications Technology
Board chairperson Paradza Paradza during the launch of the Tax
Inspectors Without Borders – Criminal Investigation (TIWB-CI)
Partnership by the Zimbabwe Revenue Authority (ZIMRA).
The partnership of ZIMRA with several partners that include the World
Bank, the United Nations Development Programme (UNDP), South African
Revenue Services (SARS) and the Africa Tax Administration Program is
aimed at capacitating ZIMRA and its sister law enforcement agents in the
fight against tax crime.
Ncube said impermissible tax planning and outright tax evasion schemes
are real threats to Government ability to mobilize enough resources
needed for the attainment of economic and social prosperity for the
country.
He said the government was confident that the program will sharpen
ZIMRA`s teeth in the fight against tax evasion and many other tax
offences with the ultimate objective of an improved voluntary compliance
culture within the tax ecosystem.
“I am advised that this is a unique program in which the Tax Inspectors
Without Borders has only conducted this program in very few countries
across the globe.
“The program is also unique in that it adopts the Learning by Doing
Approach. I am told that it is going to run for the next 18 months from
today. ZIMRA officials and selected officials from other Law Enforcement
Agents shall be exposed to both in-class and on the field training.
“The importance of Domestic Revenue Mobilization cannot be
over-emphasized. It is from these resources that the Government is able
to finance national strategic projects and stabilize the economy for the
benefit of everyone.,” he said.
Ncube added that the modern economic environments are characterised by
global competition, socio-economic uncertainties in the midst of
complicated impermissible tax planning and tax evasion schemes.
He urged tax administrators to be innovative, agile, client-centric and
results oriented as they are required to achieve more with limited
resources while at the same time guarantee an efficient and effective
service to the tax paying community.
The launch, he said, fitted into the country’s economic blueprint, the
National Development Strategy 1, which talks of “Strengthening revenue
collection through reviewing and streamlining tax incentives,
formalizing the informal sector, upgrading of the audit and tax services
of large taxpayers, as well as linking ZIMRA systems with other
agencies.”
“This can only be achieved through concerted and focused efforts
together as citizens of this country. We need to be innovative in our
revenue mobilization strategies.
“Partnering with international expert entities and other tax
jurisdictions such as the South African Revenue Service (SARS) is a sure
way of ensuring skills and technological transfers. The primary
objective is to create a culture of increased and sustainable voluntary
compliance with our fiscal laws. It is common cause that Zimbabwe`s tax
compliance levels are low such that robust initiatives and strategies to
turn the tables must be continuously developed,” said Ncube.
He said one of the impacts of tax evasion as a crime can be demonstrated
through a person who acquires property using illegal “savings” from tax
evasion.
“This person does not only violate the fiscal statutes but also violates
provisions of the Money Laundering and Proceeds of Crime Act. Property
or assets acquired using proceeds is therefore tainted and should be
dealt with in accordance with the provisions of the Money Laundering and
Proceeds of Crime Act,” he said.
New Ziana
