With each passing month, Zimbabwe’s macroeconomic environment becomes harder and harder for businesses to operate. This has forced businesses to look for ways to reduce costs however they can. One expense businesses are choosing to default on is taxes.
According to one ZIMRA official the tax collection agency is owed close to $4.5 billion in unpaid taxes. A lot of businesses that are blatantly refusing to pay their taxes are allegedly owned by top politicians and business people with links to high ranking officials.
ZIMRA is losing a lot of money and some companies opt to ZIMRA losing billions to tax evaders pay bribes to some officials just to avoid paying hefty tax fees.
Tax evasion is quite widespread in Zimbabwe and a lot of self employed people do not pay taxes. ZIMRA has also called upon Small and medium enterprises (SMES) to pay their tax dues:
Small enterprises and co-operatives should register with ZIMRA and desist from tax evasion by virtue of their not being registered.
Such practices are illegal and once ZIMRA catches up with you there will be a lot of penalties involved which could result in the closure of some organisations.