THE Zimbabwe Revenue Authority (Zimra) has put small scale mining syndicates in Masvingo under scrutiny in a bid to ensure voluntary compliance with the tax laws.
A letter addressed to mining syndicates and signed by the Zimra Masvingo branch manager, Mr Makambanga, said:
“The revenue collecting arm of Government is auditing the level of tax compliance among small scale miners in the province.
“I am conducting a review of your tax affairs for the period from January 2015 to December 2017 and kindly requesting that you avail the following records for the same period”.
The letter further indicates mining syndicates should explain the reason why they are not registered with Zimra when they are generating income from their operations.
“You should avail invoices of expenditure for the given period.
“Provide excel schedules of expenditure and purchases indicating the date, invoice number, supplier and amount. Show sales book, daily sales schedules on excel indicating the date and amount, copies of ITF 16, lease agreements and financial statements,” it reads.
According to the letter, the tax authority intends to complete the review within a period of two weeks from the receipt of the letter and demands that all syndicates co-operate.
“You are, therefore, being requested to attend the initial interview on Friday, 12 April at 9am in office number 517, 5th floor Zimre centre building.”
Contacted for comment a member of Zimbabwe Mining Federation, Mr Rodrick Mumbire, said it was not bad for Zimra to “audit” small scale miners’ tax compliance levels but said Government should not demand too much.
“While Zimra is doing its job of collecting revenue, we are not happy with the way those faithful miners are being ‘punished’. Small scale miners’ proceeds are being overestimated because if we go on the ground they get little in terms of returns,” said Mr Mumbire.
He said syndicates were already paying royalties to Government and meeting other financial obligations.
“We think small scale miners are heavily taxed. While we are exempted from paying presumptive tax, we should pay income tax, mineral royalties and for Environmental Impact Assessment fees, among other payments,” Mr Mumbire said.
“I think Zimra should also approach those syndicates which do not sell their gold to Fidelity Printers and Refineries so that we are all taxed. They must not kill the goose that lays the golden egg, instead we deserve more incentives for our growth.”
Small scale miners have also expressed concern over Government’s decision to reduce the rate of foreign currency retention from 70 percent to 55 percent. – –chronicl.co.zw