ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title.
2. Interpretation.
3. . . . . . .
PART II
SALES TAX
4. Sales tax.
5. Persons liable for tax.
6. Registered operators to include tax in price and not to represent that no
tax payable.
7. Certain transactions deemed to be sales.
8. Exemptions from sales tax.
9. Sale value of leased goods.
PART III
REGISTRATION
10. Registration of traders, auctioneers, motor dealers and finance agents.
11. Stock in hand free of tax.
12. Form and duration of certificates.
13. Quotation of certificates on certain sales.
14. Cancellation of certificate.
PART IV
CANCELLATION OF REGISTRATION OF REGISTERED TRADERS
15. Cancellation of registration.
16. Duties of trader on cancellation of registration.
PART V
RETURNS, PAYMENT AND ASSESSMENTS
17. Returns and payment.
18. Estimated assessments of tax.
19. Power to appoint agent.
19A. Interest on unpaid tax.
PART VA
SPECIAL PROVISIONS APPLICABLE TO SALES OF MOTOR VEHICLES
TITLE 23 19B. Sales tax to be paid before change of ownership of motor vehicle
registered.
19C. Value of motor vehicle on which sales tax payable.
PART VI
TAX ON IMPORTS
20. Tax on imports.
21. Entry and payment of tax.
22. Exemptions from tax on imports.
23. Refunds and remissions of tax on certain imports.
24. Officers may endorse customs documents.
25. Terms defined in Customs Act.
PART VII
REFUNDS OF TAX
26. Refunds generally.
27. Refunds in respect of capital goods.
28. Refunds to certain purchasers or clients.
28A. Refunds in respect of debts.
29. Form of applications for refunds.
30. Refunds to be drawbacks.
31. Refunds to specified persons.
32. Calculation of refunds.
PART VIII
GENERAL
33. Additional tax in event of default or omission.
34. Onus of proof.
35. Objections.
36. Classification of goods for tax purposes.
37. Liability of manager, etc.
37A. Public Officers of companies.
38. Change, transfer, etc., of business to be notified.
39. Recovery of tax and penalties.
40. Preservation of secrecy.
41. Regulatory powers.
42. Resolutions of Parliament in respect of statutory instruments.
43. Contract price may be varied according to tax.
44. Rate of tax in relation to time of importation or entry.
45. Records.
46. Delegation of functions of Controlling Officer.
47. Powers of entry, search, etc.
48. Offences and penalties.
49. Imposition of fine by Controlling Officer.
50. Payment by instalments.
51. Tax avoidance generally.
52. Withholding of amounts payable under contracts with State or
statutory corporations.
AN ACT to provide for the imposition, assessment and collection of a tax on the sale
or hire of goods, the provision of services and the importation of certain goods; and to
provide for matters incidental thereto and connected therewith.
[Date of commencement: 1st October, 1963.]
PART I
PRELIMINARY 1 Short title
This Act may be cited as the Sales Tax Act [Chapter 23:08].
2 Interpretation
(1) In this Act-
"auctioneer" means a person who carries on the business, whether exclusively or not,
of selling goods by auction, whether he sells such goods on his own account or on
behalf of other persons;
"bread" means plain bread and includes plain buns and plain rolls;
"certificate" means the certificate referred to in section ten;
"client" means any person to whom a service has been supplied;
"Controlling Officer", in relation to-
(a) the tax imposed by Part II, means the Commissioner in charge of the
department of the Zimbabwe Revenue Authority which is declared in terms of the
Revenue Authority Act [Chapter 23:11] to be responsible for assessing, collecting
and enforcing the payment of the taxes leviable under the Income Tax Act [Chapter
23:06];
(b) the tax imposed by Part VI, means the Commissioner in charge of the
department of the Zimbabwe Revenue Authority which is declared in terms of the
Revenue Authority Act [Chapter 23:11] to be responsible for assessing ,collecting
and enforcing the payment of duties under the Customs and Excise Act [Chapter
23:02.];
"Customs Act" means the Customs and Excise Act [Chapter 23:02], and includes any
regulations made thereunder;
"factory" means premises which are-
(a) registered in terms of the Factories and Works Act [Chapter 14:10] or
in respect of which a provisional factory permit is in force in terms of that Act; or;
(b) used as a factory for the manufacture of explosives, the owner of
which holds a licence issued in terms of the Explosives Act [Chapter 10:08] to
manufacture explosives on those premises; or
(c) intended to be used, when completed, in such a manner as to require
such registration or licensing;
"finance agent" means a person who carries on the business, whether exclusively or
not, of discounting private sale agreements;
"financial lease" means a written agreement for the letting and hiring of capital goods
to be used by the purchaser for the purposes of his trade, where the seller is-
(a) a commercial bank; or
(b) an accepting house; or
(c) a discount house; or
(d) a finance house;
registered or required to be registered under the Banking Act [Chapter 24:20];
"goods" means corporeal, movable property of any description and includes goods
sold as food, whether after preparation or otherwise;
"hotel" means any premises in or on which the business of supplying lodging and
meals for reward is or is intended to be conducted, and includes a motel or boatel;
"Minister" means the Minister of Finance or any other Minister to whom the
President may, from time to time, assign the administration of this Act;
"motor dealer" means a person who carries on the business or trade, whether
exclusively or not, of selling motor vehicles and additionally, or alternatively,
services involving the repair and maintenance of motor vehicles, whether he sells
such motor vehicles or services on his own account or on behalf of other persons;
"motor vehicle" means a motor vehicle as defined in subsection (1) of section 2 of the Road Traffic Act [Chapter 13:11];
"private sale agreement" means an agreement under which goods are sold by a person
other than a registered operator;
"registered operator" means a trader, motor dealer, finance agent or auctioneer who is
registered and, in the case of a partnership which is so registered, each member of the
partnership shall be regarded as a registered operator;
"revenue officer" means-
(a) any person who is a proper officer as defined in section 2 of the
Customs and Excise Act [Chapter 23:02];
(b) every officer in the department referred to in paragraph (a) of the
definition of "Controlling Officer", including the Commissioner in charge of that
department;
(c) the Commissioner and every tax officer in the Department of Taxes;
and the "revenue officer", in relation to any duty or right imposed or conferred, as the
case may be, on any person, means the revenue officer of the district in which that
person carries on business;
"sale" includes barter, exchange and hire and the supply of a service, and the terms
"seller", "purchaser" and "price" and any grammatical variations and parts of speech
of, and expressions cognate with, such terms shall be construed accordingly;
"sale value", in relation to goods that have been sold or a service that has been
supplied, means the total sum payable by the purchaser or client under the agreement
for the sale of the goods or the supply of the service, as the case may be, and includes
-
(a) any amount that may be charged to the purchaser or client in respect
of tax payable; and
(b) any sum payable by the purchaser or client by way of a deposit or
other initial receipt or credited or to be credited to him under the agreement on
account of any such deposit or receipt, whether that sum is to be or has been received
by the seller or supplier or by any other person or is to be or has been discharged by
the receipt of money, the transfer or delivery of goods, the receipt of a service or by
any other means;
but does not include-
(i) any sum-
A. payable outside Zimbabwe in relation to any service; or
B. paid in foreign currency by a non-resident person visiting Zimbabwe
by way of a credit card, cheque drawn on a foreign bank, foreign travellers cheque or
foreign draft in relation to accommodation to a hotel or boarding-house inside
Zimbabwe;
or
C. paid for transport by air to and from Zimbabwe;
(ii) any sum payable by the purchaser or client in respect of any of the
following-
A. as compensation for damages for breach of the agreement; or
B. for the payment of licence or registration fees; or
C. for the payment of any insurance premium to insure the goods sold or
the supply of the service, as the case may be, under the agreement; or
D. such costs as may be prescribed;
or
(iii) any sum payable by the client in respect of connection fees, capital
contributions or other charges incidential to the supply of electricity where such
charges are not calculated directly on the quantity of electricity consumed; "service" means any service whatsoever supplied by one person to another, including
the provision of accommodation at a hotel, but does not include a sale of goods;
"supplier" means any person who supplies a service to a client;
"tax" means any tax imposed by this Act;
"trader" means a person who carries on the business or trade, whether exclusively or
not, of selling goods or supplying a service, whether he sells such goods or supplies
such service on his own account or on behalf of another, either directly or through an
agent, but does not include an auctioneer, finance agent or motor dealer in relation to
his business as such.
(2) Nothing in subsection (1) shall be construed as in any way derogating from the
Interpretation Act [Chapter 1:01].
3 . . . . . .
[Repealed by s.36 of, and para 2 of Part VII of the Third Schedule to the Revenue
Authority Act [Chapter 23:11].]
PART II
SALES TAX
4 Sales tax
(1) Subject to this Act, there shall be charged, levied and collected, for the benefit of
the Consolidated Revenue Fund a tax at such rate as may be fixed by Parliament on
the sale value of-
(a) goods sold or services supplied by registered traders in their normal
course of business as such; and
(b) goods comprising stock-in-trade sold by registered traders otherwise
than in the normal course of their business as such;
(c) goods or services sold by auctioneers in the course of their business as
such, whether by way of an auction sale or otherwise; and
(d) motor vehicles and other goods or services sold by motor dealers,
whether on their own account or on behalf of other persons; and
(e) goods or services sold under a private sale agreement that is
discounted by a finance agent;
less any amounts referred to in subsection (2) or (3).
(2) In calculating, for the purposes of subsection (1), the sale value of goods or
services referred to in that subsection, there shall be deducted-
(a) any amounts allowed by the seller or supplier in respect of-
(i) cash or settlement discounts relating to such goods or services; or
(ii) defects in such goods or services; or
(iii) the return of containers;
(b) the sale value of such goods or services where the full amount thereof
has been returned to the purchaser or client on the cancellation of the sale or contract
for the supply of the service, as the case may be, and the restoration of the status quo
ante:
Provided that no deduction in terms of this subsection shall be made in respect of
goods, services or containers which are exempt in terms of section eight from tax or
in respect of which a refund has been granted in terms of section thirty-one.
(3) In calculating, for the purposes of subsection (1), the sale value of goods sold
under a financial lease, there shall be deducted the difference between the total sum
payable for the goods by the purchaser and the cost to the seller of the goods.
(4) Where goods are sold in a container the ownership of which does not pass to the
purchaser of the goods upon the sale thereof, such container shall be deemed, for the
purposes of this Act, to have been sold to the purchaser of the goods at the time of
such sale. (5) The tax payable in terms of subsection (1) shall be reduced by an amount
determined by applying the formula-
in which-
A represents the rate per centum of tax fixed by Parliament for the
purposes of subsection (1);
B represents the tax payable in terms of this Part before determining the
amount referred to in this subsection.
5 Persons liable for tax
(1) The tax mentioned in section four shall be payable-
(a) in the case of goods sold by an auctioneer in the course of his business
as such-
(i) where the auctioneer is the agent of the seller, by the auctioneer on
behalf of the seller;
(ii) where the auctioneer is the seller, by the auctioneer;
(b) in the case of a motor vehicle or other goods sold by a motor dealer-
(i) where the motor dealer is the agent of the seller, by the motor dealer
on behalf of the seller;
(ii) where the motor dealer is the seller, by the motor dealer;
(c) in the case of goods sold under a private sale agreement that is
discounted by a finance agent, by the finance agent on behalf of the seller;
(d) in the case of goods not referred to in paragraphs (a) to (c) sold by a
registered trader-
(i) where the registered trader is the agent of the seller, by the registered
trader on behalf of the seller;
(ii) where the registered trader is the seller, by the registered trader;
(e) in the case of services, by the registered trader.
(2) Where an auctioneer, motor dealer, finance agent or registered trader pays the tax
in terms of subsection (1) on behalf of the seller, he shall be entitled to recover the
amount so paid from the seller as a debt, together with the cost of recovery, or to
retain or deduct that amount out of any money in his hands belonging or payable to
the seller.
6 Registered operators to include tax in price and not to represent that no tax
payable
(1) Tax payable under section five shall not in any manner whatsoever be quoted,
shown, marked or in any other manner whatsoever represented separately by the
seller or supplier but shall be included as an element of the price charged or to be
charged to the purchaser or client:
Provided that, in circumstances which seem to him to be appropriate, the Controlling
Officer may authorize a seller or supplier to depart from this subsection either wholly
or in part.
(1a) Any seller or supplier who contravenes subsection (1) shall be guilty of an
offence and liable to a fine not exceeding level four.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002.]
(2) Except in respect of sales upon which, in terms of section eight, no tax is payable,
a registered operator who sells goods or supplies services shall not represent orally,
by written or pictorial advertisement or in any other manner whatsoever, whether
expressly or by implication, that no tax or a lesser rate than that fixed by or in terms
of this Act is included in the price charged.
(2a) Any registered operator who contravenes subsection (2) shall be guilty of anoffence and liable to a fine not exceeding level five or to imprisonment for a period
not exceeding six months or to both such fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002.]
7 Certain transactions deemed to be sales
(1) Where a registered operator disposes of, otherwise than by sale, or applies to his
own use or for the use of any other person, otherwise than in the circumstances
described in subsection (2), (3) or (4), goods acquired by him in the normal course of
his business as such, including any goods acquired by him under subsection (1) of
section thirteen-
(a) for the purposes of this Act, such disposal or application shall be
deemed to be a sale in the normal course of his business as such; and
(b) for the purposes of the assessment of tax, the sale value of any such
goods shall be the cost of such acquisition by the registered operator:
Provided that this subsection shall not apply in relation to goods which have become
unsaleable by reason of obsolescence, damage or deterioration and are discarded by
the registered operator.
(2) Where any goods acquired by a registered operator in the normal course of his
business as such are fitted to other goods under any agreement by which the
ownership of such first-mentioned goods passes from the registered operator to some
other person otherwise than by way of sale-
(a) for the purposes of this Act such transfer of ownership shall be
deemed to be a sale in the normal course of his business as such; and
(b) for the purposes of the assessment of tax the sale value of such first-
mentioned goods shall be calculated as if they were sold by the registered operator in
the normal course of his business as such.
(3) Where any goods acquired by a registered operator in the normal course of his
business as such are fitted to other goods which are subsequently sold, in such a
manner that on the sale of such other goods the ownership of such first-mentioned
goods passes from the registered operator to the purchaser-
(a) for the purposes of this Act such first-mentioned goods shall be
deemed to be sold with such other goods in the normal course of his business as such;
and
(b) for the purposes of the assessment of tax the sale value of such first-
mentioned goods and such other goods shall be calculated by reference to sale value
of such other goods.
(4) Where any goods acquired by a registered operator in the normal course of his
business as such are fitted to immovable property and the ownership of such goods
passes from the registered operator to the owner of such property-
(a) for the purposes of this Act such goods shall be deemed to have been
sold in the normal course of his business as such; and
(b) for the purposes of the assessment of tax the sale value of such goods
shall be calculated as if they had been sold by the registered operator in the normal
course of his business as such.
(5) For the avoidance of doubt it is hereby declared that any sale which by virtue of
any provision of this section is deemed to be made shall be a resale for the purposes
of paragraph (a) of subsection (1) of section thirteen or paragraph (a) of subsection
(1) of section twenty.
(6) Whenever any goods mentioned in paragraph (e) of subsection (1) of section
eight, subsection (1) of section thirteen or paragraph (a) or (b) of section twenty-two
are diverted to some use other than that intended at the time of purchase, they shall bedeemed to have been sold by the purchaser and subsection (1) shall apply, mutatis
mutandis, to the purchaser, whether or not he is a registered operator.
(7) Where a motor vehicle is sold to a person who is introduced to the seller by a
motor dealer and the buyer or the seller pays a commission to the motor dealer in
respect of that sale, the motor vehicle shall be deemed for the purposes of this Act to
have been sold by the motor dealer on behalf of the seller.
8 Exemptions from sales tax
(1) No tax shall be payable in terms of this Part in respect of-
(a) the sale of goods exported from Zimbabwe by a registered operator; or
(b) the sale, by a farmer who is licensed in terms of the Farmers Licensing
and Levy Act [Chapter 18:10] or who farms land in Communal Land, of any of the
following-
(i) crops, including horticultural produce and timber;
(ii) livestock, including poultry and bees;
(iii) the produce of any kind of animal husbandry, including carcasses,
hides or wool of animals;
(iv) bacon or ham;
(v) cheese, butter or other dairy produce;
(vi) eggs, honey, seeds or any other kind of agricultural produce;
produced by such farmer and sold in a state normally required by the
appropriate agricultural market, but excluding anything sold by him or on his behalf
which has been subjected by him or on his behalf to any further process of
manufacture; or
(c) the sale by the holder of a registered mining location of minerals as
defined in the Mines and Minerals Act [Chapter 21:05], including limestone; or
(d) the sale of goods or the supply of services in accordance with
subsection (1) of section thirteen;
(e) the sale of such goods or the supply of such services as may be
prescribed, which are intended for-
(i) manufacturing or industrial purposes in a factory; or
(ii) use by a miner for mining purposes on a registered mining location as
defined in the Mines and Minerals Act [Chapter 21:05]; or
(iii) the production of such goods or the supply of such services as are
referred to in paragraph (b); or
( f ) such other sales or services as may be prescribed.
(2) No tax shall be payable by a registered operator in respect of a service, where the
registered operator-
(a) receives the service for the benefit of his client or on his client's
behalf; and
(b) has charged or will charge the sales value of the service to his client.
(3) A registered operator who exports goods referred to in paragraph (a) of
subsection (1) shall give to the revenue officer in such manner as may be prescribed
details of the export of such goods.
(4) Where a person who is not-
(a) a miner; or
(b) a farmer who is licensed in terms of the Farmers Licensing and Levy
Act [Chapter 18:10] or who farms land in Communal Land;
represents himself to be a person referred to in paragraph (a) or (b) as the case may
be, he shall be liable to pay in respect of his purchase of any goods or service referred
to in paragraph (e) of subsection (1)-
(i) the tax which would have been payable in respect of the sale or supplythereof had he not made the said representation; and
(ii) any penalty which may be due in relation thereto in terms of section
thirty-three;
as if he were the seller or supplier thereof, and the registered operator from or through
whom he purchased those goods or that service, as the case may be, shall not be
required to pay tax upon the sale of those goods or that service.
9 Sale value of leased goods
Where rent for the lease of goods or payment for any service is payable at intervals
during the subsistence of the lease or while the service is supplied, the sale value of
the goods or service shall be deemed, in respect of each period for which a payment is
due, to be the rent or amount payable, as the case may be, in respect of that period.
PART III
REGISTRATION
10 Registration of traders, auctioneers, motor dealers and finance agents
(1) Every-
(a) trader, other than a trader referred to in paragraph (c), who, in any
period of twelve months commencing on the 1st January, transacts or, in the opinion
of the revenue officer, will transact sales of goods other than such goods as may be
prescribed,3 the aggregate sale value of which amounts to two million five hundred
thousand dollars or more; and
(b) auctioneer, motor dealer or finance agent;
(c) trader who, in any period of twelve months commencing on the 1st
January in any year, provides or, in the opinion of the revenue officer, will provide
one or more services, other than such services as may be prescribed3, the aggregate
sale value of which amounts to five hundred thousand dollars or more;
shall apply to the revenue officer for a certificate of registration.4
[amended by Section 20 of the Finance Act No.27 of 2001 with effect from the year
of assessment beginning on the 1st January, 2002.]
(1a) Any trader, auctioneer, motor dealer or finance agent who fails to refuses to
apply for a certificate of registration when required to do so by subsection (1) shall be
guilty of an offence and liable to a fine not exceeding level six or to imprisonment for
a period not exceeding six months or to both such fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2201, with effect from the
10th September, 2002].
(2) A trader, other than a trader referred to in subsection (1), who produces goods for
sale by a process of manufacture or by the application of artistic or manual skills and
who, in any period of twelve months commencing on the 1st January, transacts or, in
the opinion of the revenue officer, will transact sales of goods other than such goods
as may be prescribed, the aggregate value of which amounts to two hundred and fifty
thousand dollars or more but is less than two million five hundred thousand dollars,
may apply to the revenue officer for a certificate of registration.
[amended by Section 20 of the Finance Act No.27 of 2001 with effect from the year
of assessment beginning on the 1st January, 2002.]
(3) Where a person who has made an application in terms of subsection (1) or (2)
carries on his business at more than one fixed place of business, he shall give the
revenue officer details of every such fixed place of business
(4) An application in terms of subsection (1) shall be made-
(a) in the case of a trader who falls within the provisions of paragraph (a)
of subsection (1), at any time during any period referred to in that paragraph, but not
later than thirty days after-
(i) the date the sales transacted amount to an aggregate value of two million five hundred thousand dollars; or
[Amended by s. 20 of the Finance Act 27 of 2001 from the 1 January 2002.]
(ii) the date of the notification to the trader of the revenue officer's
opinion;
whichever is the sooner;
(b) in the case of-
(i) an auctioneer who commences the business of an auctioneer; or
(ii) a motor dealer who commences the business of selling motor
vehicles; or
(iii) a finance agent who commences the business of discounting private
sale agreements;
not later than thirty days after he commences such business;
(c) in the case of a trader who falls within the provisions of paragraph (c)
of subsection (1), at any time during any period referred to in that paragraph, but not
later than thirty days after-
(i) the date the services provided attain an aggregate sale value of five
hundred thousand dollars; or
[Amended by s. 20 of the Finance Act 27 of 2001 with effect from the year of
assessment beginning on the 1 January 2002.]
(ii) the date of the notification to the trader of the revenue officer's
opinion;
(5) If the revenue officer is satisfied that the applicant is required or permitted by this
Act to be registered, he shall issue him with a certificate or, in the case of a person
mentioned in subsection (2), either with one certificate or with a separate certificate in
respect of each fixed place of business, as he thinks fit, having regard to the system of
accounting used by the applicant.
[Section 10(1)(a) and (c) and 10(2) amended by s 35 of the Finance Act 17 of 1997
with effect from 1 January 1998.]
11 Stock in hand free of tax
(1) Every trader referred to in paragraph (a) of subsection (1) of section ten or in
subsection (2) of that section who applies for a certificate in terms of that section
shall submit with his application a written declaration on the prescribed form stating
the sale value of any goods-
(a) which are owned by him at the date of his application; and
(b) which he intends to sell; and
(c) in respect of which tax was payable on the sale to him or importation
by him, as the case may be.
(2) If the revenue officer concerned is not satisfied that the sale value of such goods
is as declared he may make an estimated assessment of the sale value and the amount
assessed shall be the sale value for the purposes of this section.
(3) In the case of a trader referred to in subsection (1), no tax shall be payable by him
in terms of Part II in respect of any goods sold by him from the date of his
registration until the aggregate sale value of the goods sold by him equals the sale
value declared or assessed, as the case may be, in terms of this section.
(4) Subsections (1), (2) and (3) shall not apply to goods owned by a trader which are
or are intended to be used in connection with the provision of any service specified in
the Schedule.
12 Form and duration of certificates
(1) Every certificate shall be in such form and shall contain such particulars as may
be prescribed.
(2) In the event of the death, insolvency, liquidation, mental disorder or other legaldisability of a registered operator the executor, trustee, assignee, liquidator or curator,
as the case may be, shall be deemed-
(a) to be registered so long as he carries on the business of the registered
operator;
(b) for the purposes of the disposal of any stock on hand after the
cessation of the business of the registered operator, to be registered, and any goods
disposed of from the said stock on hand, otherwise than by auction, shall be deemed
to have been sold in the normal course of business as a registered operator, and any
tax due on the sale of goods disposed of from that stock on hand shall form an
administrative charge against the estate or an expense of the liquidation, as may be
appropriate in the circumstances.
(3) Every certificate issued to a trader shall remain in force notwithstanding that the
trader may at any time after the issue thereof transact sales of a lesser annual value
than that described in subsection (1) of section ten until it is cancelled in terms of
section fourteen or the registration of the trader is cancelled in terms of section
fifteen.
13 Quotation of certificates on certain sales
(1) Where a registered operator purchases from another registered operator or from
any person through a registered operator acting as the agent of the said person-
(a) goods intended for resale, including goods intended for resale as food,
whether after preparation or otherwise; or
(b) goods intended to be-
(i) so used or dealt with that those goods or some element thereof will
form a part of goods to be manufactured and will remain in the manufactured goods
as an element essential to them in their completely manufactured condition; or
(ii) used exclusively as an ingredient, catalyst or chemical processing
agent in a process of manufacture;
or
(c) goods intended to be used as containers, or for the packaging or
wrapping, of goods sold by him; or
(d) services, other than-
(i) services supplied by a hotel; or
(ii) . . . . . .
(iii) the supply of electricity by the Zimbabwe Electricity Supply
Authority;
whose price he will recover, wholly, or substantially, from a customer;
he shall declare that he holds a certificate, and the registered operator from or through
whom he purchases such goods or services shall record such declaration, in such
manner as may be prescribed.
(2) A registered operator who purchases from or through another registered operator
goods or services, other than goods or services in respect of which he is required to
make a declaration in terms of subsection (1), shall not declare in connection with the
purchase of such first-mentioned goods or services that he holds a certificate.
(2a) A registered operator who contravenes subsection (2) without reasonable
excuse, the proof whereof lies on him, shall be guilty of an offence and liable to a fine
not exceeding level eight or to imprisonment for a period not exceeding two years or
to both such fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002.].
(3) A person who is-
(a) a registered operator and who purchases goods or services, other thangoods or services in respect of which he is required to make a declaration in terms of
subsection (1), and declares, in connection with the purchase of such first-mentioned
goods or services, that he holds a certificate; or
(b) not a registered operator and who represents himself to be a registered
operator and declares, in connection with the purchase of goods or services, that he
holds a certificate;
shall be liable to pay in respect of those goods or services-
(i) the tax which would have been payable thereon by the seller or
supplier had he not made the said declaration; and
(ii) any penalty which may be due in relation thereto in terms of section
thirty-three;
as if he were the seller or supplier thereof, and the registered operator from or through
whom those goods or services were purchased shall not be required to pay tax upon
the sale value of those goods or services.
14 Cancellation of certificate
Any registered operator who ceases to carry on the business to which his certificate
relates shall forthwith notify the revenue officer in writing and shall present his
certificate to the revenue officer who shall cause it to be cancelled.
PART IV
CANCELLATION OF REGISTRATION OF REGISTERED TRADERS
15 Cancellation of registration
(1) Where a registered trader-
(a) expects that in any period of twelve months commencing on the 1st
January he will transact sales of goods or will supply services; or
(b) has, in the immediately preceding period of twelve months
commencing on the 1st January, transacted sales of goods or supplied services;
other than such goods or services as may be prescribed, the aggregate sale value of
which is less than the amount specified in-
(i) paragraph (a) of subsection (1) of section ten, in the case of a trader
who is required to be registered in terms of that paragraph; or
(ii) paragraph (c) of subsection (1) of section ten, in the case of a trader
who is required to be registered in terms of that subsection; or
(iii) subsection (2) of section ten, in the case of a trader who is permitted
to be registered in terms of that subsection;
he shall notify the revenue officer thereof.
(2) If in the opinion of a revenue officer a registered trader will, in any period of
twelve months commencing on the 1st January, transact sales of goods or supply
services, other than such goods or services as may be prescribed, the aggregate sale
value of which will be less than the amount specified in-
(a) paragraph (a) of subsection (1) of section ten, in the case of a trader
who is required to be registered in terms of that paragraph; or
(b) paragraph (c) of subsection (1) of section ten, in the case of a trader
who is required to be registered in terms of that paragraph; or
(c) subsection (2) of section ten, in the case of a trader who is permitted to
be registered in terms of that subsection;
he may notify that trader that he intends to cancel his registration in terms of this
section.
(3) If-
(a) after receiving a notification in terms of subsection (1) the revenue
officer considers that the registration of the trader should be cancelled; or
(b) a trader who has been notified in terms of subsection (2) of theintention to cancel his registration fails, within twenty-one days of the revenue officer
having sent that notification, to satisfy the revenue officer that his registration should
not be cancelled;
the revenue officer shall cancel the registration of the trader with effect from such
date as he thinks fit.
(4) The revenue officer shall forthwith notify a trader whose registration is being
cancelled in terms of subsection (3) of the date with effect from which his registration
will be cancelled and he will cease to be a registered trader and that trader shall return
to the revenue officer, within fourteen days of the said date, the certificate or
certificates which have been issued to him.
(5) The cancellation of the registration of a trader shall not affect any obligation
imposed on him by or in terms of this Act in respect of any period during which he
was a registered trader.
(6) A registered trader who contravenes subsection (1) or (2) without reasonable
excuse, the proof whereof lies on him, shall be guilty of an offence and liable to a fine
not exceeding level six or to imprisonment for a period not exceeding six months or
to both such fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002.]
16 Duties of trader on cancellation of registration
(1) A trader whose registration has been cancelled in terms of section fifteen shall,
within thirty days of the date on which he ceased to be registered-
(a) submit to the revenue officer a statement setting out the cost to him of
any goods which were owned by him immediately prior to the cancellation of his
registration and which, in the normal course of his business as such-
(i) he had purchased in accordance with subsection (1) of section
thirteen; or
(ii) he had imported and in respect of which no tax in terms of section
twenty had been charged or levied by virtue of paragraph (b) of subsection (1) of that
section;
and
(b) pay to the revenue officer an amount equal to the tax that would have
been payable by him on the cost to him of the goods referred to in the statement in
terms of paragraph (a) had they not been purchased by him as a registered operator.
(2) Any person who contravenes subsection (1) without reasonable excuse, the proof
whereof lies on him, shall be guilty of an offence and liable to a fine not exceeding
level six or to imprisonment for a period not exceeding six months or to both such
fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002.]
PART V
RETURNS, PAYMENT AND ASSESSMENTS
17 Returns and payment
(1) Every registered operator shall, on or before the last day of every month, submit
to the revenue officer or other officer authorized by the Controlling Officer to receive
payments of tax a statement on the form prescribed8 giving such particulars as may
be prescribed relating to all sales he has transacted, auction sales he has conducted or
services he has supplied, as the case may be, during the preceding month, including
sales or services exempted in terms of section eight:
['Controlling Officer' substituted for Commissioner by s. 36 of, and para 3 of Part
VII of the Third Schedule to the Revenue Authority Act [Chapter 23:11].] Provided that if the accounting records of a registered operator are completed on a
date earlier than the last day of each month, the revenue officer may, on written
application by such registered operator, permit such statement to relate to the period
ending on such date.
(2) Where a registered operator holds more than one certificate in accordance with
subsection (5) of section ten, a separate statement shall be submitted relating to each
shop, store or fixed place of business in respect of which a certificate is held.
(2a) A registered operator who contravenes subsection (1) or (2) without reasonable
excuse, the proof whereof lies on him, shall be guilty of an offence and liable to a fine
not exceeding level seven or to imprisonment for a period not exceeding one year or
to both such fine and such imprisonment.
[Inserted by the Criminal Penalties Amendment Act 22 of 2001, with effect from the
10th September, 2002, containing an obvious error by inserting this section as (2)
following the existing (1), and existing (2). - Editor.]
(3) Every statement shall be accompanied by the amount of tax payable in terms of
Part II in respect of the sales or services to which the statement relates.
(4) The revenue officer may, for sufficient reason, on payment of such amount as he
considers will be shown on any statement to be due as tax, grant an extension of time,
not exceeding sixty days, in which a registered operator shall comply with this
section.
(5) Any reference in this section to sales shall be construed as including a reference
to the discounting of private sale agreements by finance agents.
18 Estimated assessments of tax
(1) Where-
(a) any registered operator fails-
(i) to submit the statement referred to in subsection (1) of section
seventeen; or
(ii) to pay the whole or any part of the tax referred to in subsection (3) of
section seventeen;
(b) a revenue officer is not satisfied with any statement submitted by any
registered operator; or
(c) a revenue officer has reason to believe or suspect that any person is
liable to pay tax in terms of Part II, whether or not he is registered; or
(d) a revenue officer has reason to believe that a person who is or was
required to register in terms of section ten would have been liable to pay tax but for
his failure so to register;
the revenue officer may cause an assessment to be made of the amount upon which in
his judgment tax is payable:
Provided that no such assessment shall be made in respect of any sale which was
transacted or service which was supplied more than six years before the date of any
such proposed assessment unless the revenue officer considers that the operator or
any other person has, in relation to his liability under this Act, made use of any fraud
or misrepresentation or has wilfully failed to disclose any fact, in which case such
assessment may be made in respect of any sale or service to which the fraud,
misrepresentation or non-disclosure relates and which was transacted or supplied, as
the case may be, at any time thereafter.
[Proviso to section 18(1) amended by s 38(a) of the Finance Act 17 of 1997 with
effect from 28 November 1997.]
(2) The revenue officer shall give the person concerned written notice stating the
amount of tax payable and fixing a date on which the tax shall become payable, and
such person shall be liable to pay tax accordingly: [Proviso repealed by s.16 (a) of the Finance (No.2) Act No.21 of 1999 with effect
from the 1st January 2000.]
(2a) . . . . . .
[Subsection (2a) repealed by s.16 (b) of the Finance (No.2) Act No.21of 1999 with
effect from the 1st January 2000.]
(3) The payment by any person of tax in terms of this section shall not be a bar to the
prosecution of that person for any offence he may have committed in terms of this
Act.
19 Power to appoint agent
(1) A revenue officer may, if he thinks it necessary, declare any person to be the
agent of any registered operator, and the person so declared an agent shall be the
agent of such registered operator for the purposes of this Act, and, notwithstanding
anything to the contrary contained in any other law, may be required to pay any tax
due from any moneys in any current account, deposit account, fixed deposit account
or savings account or from any other moneys, including pensions, salaries, wages or
any other remuneration, which may be held by him for, or due by him to, the
registered operator whose agent he has been declared to be.
(2) or the purposes of subsection (1)-
"person" includes-
(a) a bank, building society or savings bank; and
(b) a partnership; and
(c) any officer employed by the State;
"tax" includes any fine, interest or penalty payable under this Act.
19A Interest on unpaid tax
(1) Where tax is not paid within the period fixed in terms of section seventeen or
eighteen, interest at the prescribed rate shall be payable on so much of the tax as has
not been paid.
(2) Interest referred to in subsection (1) shall be calculated from the date on which
the unpaid tax first became payable.
[Section 19A inserted by s.17 of Finance (No.2) Act 21 of 1999 with effect from the
1st January 2000.]
PART VA
SPECIAL PROVISIONS APPLICABLE TO SALES OF MOTOR VEHICLES
[Inserted by Finance Act 15 of 2002 with effect from the 1st December, 2002.]
19B. Sales tax to be paid before change of ownership of motor vehicle registered
No registering officer in terms of the Vehicle Registration and Licensing Act
[Chapter 13:14] shall register the change of ownership of a motor vehicle unless there
is submitted to the registering officer by the new owner of the motor vehicle a
certificate issued by the Controlling Officer stating that the seller of the motor vehicle
has paid the tax payable in terms of section four on the sale of the motor vehicle
(hereinafter in this Part referred to as "sales tax").
19C. Value of motor vehicle on which sales tax payable
(1) If the Controlling Officer is of the opinion that the sale value of the motor vehicle
is less than the fair value of the motor vehicle, he may determine the fair value of that
motor vehicle, and thereupon the sales tax shall be calculated in accordance with the
fair value as so determined or the sale value, whichever is the greater.
(2) In determining the fair value in terms of subsection (1), the Controlling Officer
shall have regard to any valuation of the motor vehicle concerned made on behalf of
the person liable to pay sales tax by a member of such institution or association of
motor dealers or valuers as is prescribed by the Commissioner by notice in the
Gazette. (3) If the fair value of a motor vehicle as determined by the Controlling Officer-
(a) exceeds the amount of the sale value by not less than one-third of such
sale value, the costs of any valuation made by a person referred to in subsection (2)
shall be paid by the person liable for the payment of the sales tax;
(b) does not exceed such sale value, the costs of such valuation shall be
borne by the Controlling Officer.
(4) Subsections (2) and (3) shall not apply in respect of the purchase of a motor
vehicle sold by public auction, unless the Controlling Officer is satisfied that the sale
was not a bona fide sale by public auction, or that there was collusion between the
seller and the purchaser or their agents.
PART VI
TAX ON IMPORTS
20 Tax on imports
(1) Subject to this Act, there shall be charged, levied and collected, for the benefit of
the Consolidated Revenue Fund, a tax on-
(a) goods imported by any person who is not a registered operator; and
(b) goods imported by a registered operator not being intended for resale
in the normal course of his business as such.
(2) Such tax shall be at such rate as may be fixed by Parliament on a sum determined
by adding-
(a) the value of the goods for customs purposes determined in terms of
the Customs Act; and
(b) the amount of any customs duty payable on the goods; and
(c) except in the case of any bona fide unsolicited gift, such amount as
may be prescribed, not exceeding sixty per centum of the total of the amounts
mentioned in paragraphs (a) and (b).
(3) Such tax shall be payable by the importer.
21 Entry and payment of tax
(1) Tax payable in terms of this Part shall be paid-
(a) in the case of goods which have been or are to be placed in a
warehouse, when the goods are entered for removal from the warehouse for
consumption; or
(b) in any other case, when entry of the goods is made;
in terms of the Customs Act:
Provided that, if the goods are entered at a custom house situated beyond the borders
of Zimbabwe, payment of tax may be deferred subject to the conditions prescribed in
terms of the Customs Act for the deferment of the payment of duty.
(2) Where entry of imported goods is made in terms of subsection (1) of section 40
or section 43 or 71, as the case may be, of the Customs Act, the person making entry
shall declare upon the bill of entry, in addition to any particulars required in terms of
the Customs Act-
(a) in the case of goods to which subsection (1) of section twenty applies,
the sum of the amounts mentioned in paragraphs (a) to (c) of subsection (2) of section
twenty, and the amount of tax payable in terms of this Part, in respect of such goods;
or
(b) in the case of goods imported by a registered operator and intended for
resale in the normal course of his business as such, the number of the certificate of
such registered operator.
(3) Where entry of imported goods is made in terms of subsection (2) of section 40
of the Customs Act and the presentation of a bill of entry is dispensed with, the
person making entry shall make such declaration as the Controlling Officer maydirect.
(4) Where a registered operator imports either through the post or as freight in
aircraft, goods intended for resale in the normal course of his business as such, he
shall cause the number of his certificate to be declared upon the form, label or other
declaration, as the case may be, mentioned in subsection (1) of section 45 of the
Customs Act.
(5) Where goods are imported as freight in any aircraft in terms of section 46 of the
Customs Act-
(a) the goods shall not be delivered until the tax payable thereon in terms
of this Part has been paid and all the requirements of this Act have been complied
with; and
(b) the licensee mentioned in subsection (2) of that section shall be
responsible for the collection of the tax payable thereon in terms of this Part, as
directed by an officer, from the importer and the payment thereof to the Controlling
Officer.
(6) Where a person making entry of any goods on behalf of an importer makes a
declaration in terms of this section such declaration shall, for the purposes of this Act,
be binding upon, and be deemed to have been made by the importer.
(7) Subject to this section, tax payable in terms of this Part shall be paid in such
manner as may be prescribed.
22 Exemptions from tax on imports
No tax shall be payable in terms of this Part in respect of-
(a) goods intended to be-
(i) so used or dealt with that those goods or some element thereof will
form a part of goods to be manufactured by a registered operator or in a factory and
will remain in the manufactured goods as an element essential to them in their
completely manufactured condition; or
(ii) used exclusively as an ingredient, catalyst or chemical processing
agent in a process of manufacture by a registered operator or in a factory;
(b) such goods as may be prescribed, which are intended for-
(i) manufacturing or industrial purposes in a factory; or
(ii) use by a miner for mining purposes on a registered mining location as
defined in the Mines and Minerals Act [Chapter 21:05]; or
(iii) the production of such goods as are included in paragraph (b) of
subsection (1) of section eight;
or
(c) goods mentioned in paragraph (b) of subsection (3) of section 73 of
the Customs Act; or
(d) goods, other than goods referred to in paragraph (c) of subsection (1)
of section twenty-three, which, prior to their importation, were sold in Zimbabwe by a
registered operator and on which tax has been or is to be paid in terms of Part II; or
(e) such other goods as may be prescribed.
23 Refunds and remissions of tax on certain imports
(1) The Controlling Officer may, under such conditions and restrictions as may be
prescribed,13 refund or remit the whole or part of the tax paid or payable in terms of
this Part in respect of-
(a) such personal or household effects and other goods as may be
prescribed, which are imported by a person who enters or has entered Zimbabwe for
the purpose of taking up residence or employment therein;
(b) the personal effects of any passenger which are contained within his
baggage or upon his person at the time of entry into Zimbabwe or are imported within such period after his entry as the Controlling Officer may allow;
(c) goods imported after having been exported from Zimbabwe, not being
goods-
(i) which were exported from bond; or
(ii) which were, in terms of paragraph (a) of subsection (1) of section
eight, exempted from tax payable in terms of Part II; or
(iii) in respect of which any tax paid in terms of this Part has been
refunded in terms of subsection (3);
(d) such other goods as may be prescribed.
(2) The Controlling Officer shall refund or remit the whole of the tax paid or payable
in terms of this Part in respect of-
(a) goods on which such rebate, refund or remission of customs duty as
may be prescribed has been granted;
(b) goods other than those referred to in paragraph (a) which have been
imported free of duty;
(c) goods which have been abandoned in terms of section 221 of the
Customs Act.
(3) The Controlling Officer may refund the whole or part of any tax paid in terms of
this Part in respect of unused goods which are exported within two years from the
date on which the tax was paid thereon subject to compliance by the person
concerned with such conditions as the Controlling Officer may fix.17
(4) The Controlling Officer may, at his discretion, remit the tax payable in terms of
this Part on the importation of any single consignment of goods when the total value
of such consignment, as determined in accordance with section 104 of the Customs
Act, does not exceed four dollars.
(5) The Controlling Officer may, under such conditions and restrictions as may be
prescribed,18 remit or refund the whole or part of the tax payable or paid in terms of
this Part in respect of such goods as may be prescribed19 if such goods are supplied
directly to or purchased by-
(a) a member of the diplomatic mission or consular post of any State for
the official use of such mission or post; or
(b) a person employed at a diplomatic mission or consular post of any
State who is designated by the Minister responsible for foreign affairs as being
entitled to privileges and immunities, and in so designating such persons the Minister
responsible for foreign affairs may specify different classes of persons for the
purposes of this subsection; or
(c) a member of an international or regional organization, body or agency
designated by the Minister responsible for foreign affairs as being entitled to
privileges and immunities by virtue of, or for the purpose of giving effect to,
customary international law and usage or any other law, and in so designating such
bodies the Minister responsible for foreign affairs may specify different classes of
such bodies for the purposes of this subsection.
24 Officers may endorse customs documents
An officer may, for the purposes of this Act, make any endorsement or inscription
upon any such bill of entry, declaration, form, label or other document as is required
or accepted in terms of the Customs Act for the purposes of the importation of any
goods.
25 Terms defined in Customs Act
For the purposes of this Part, any expression to which a meaning has been assigned in
the Customs Act shall, unless the expression is otherwise defined in this Act, have the
same meaning when used in this Part. PART VII
REFUNDS OF TAX
26 Refunds generally
(1) Subject to this section, if the Controlling Officer is satisfied that any person has
paid any tax which he was not liable to pay in terms of this Act, he shall authorize a
refund of such tax to be made to such person.
(2) Where a refund is made in terms of subsection (1) the Controlling Officer may
deduct from the amount to be refunded, as an administrative charge, the sum of one
dollar.
(3) No refund shall be granted in terms of this section unless an application therefor
is received by a revenue officer within a period of six years from the date when such
tax was paid.
27 Refunds in respect of capital goods
(1) Subject to this section, where a person produces proof to the satisfaction of the
Controlling Officer that he-
(a) has purchased from a registered operator or from any person through a
registered operator acting as the agent of that person, or
(b) has imported; or
(c) is deemed in terms of section seven to have purchased;
goods of a capital nature for his own use or goods which have been used in the
construction of permanent buildings or improvements and form part of such buildings
or improvements, the Controlling Officer shall authorize a refund to be made to such
person.
(2) Where-
(a) permanent buildings are acquired by a person or goods of a capital
nature are supplied and installed for use by the owner of immovable property in such
a manner that they accede to that immovable property otherwise than as a
consequence of a sale; and
(b) goods used in the construction of such buildings and forming part
thereof or such goods of a capital nature, as the case may be, have, prior to such
acquisition or supply and installation, as the case may be, been purchased from a
registered operator, imported or deemed in terms of section seven to have been
purchased;
the Controlling Officer shall authorize a refund to be made to the person referred to in
paragraph (a):
Provided that not more than one refund shall be so authorized in respect of the same
goods.
(3) The Controlling Officer shall not authorize a refund in terms of this section
unless the application therefor is received by him-
(a) in the case of goods of a capital nature, not more than six years after
the date of purchase, importation or installation, as the case may be;
(b) in the case of goods which have been used in the construction of
permanent buildings or improvements, not more than six years after the date on which
the buildings or improvements are first used;
[Sub-s. (3) amended by s. 40 of the Finance Act 17 of 1997 with effect from 28th
November 1997.]
(c) in the case of permanent buildings which are acquired, not more than
six years after the date of acquisition.
(4) An application for a refund in terms of this section shall be accompanied by-
(a) in the case of goods purchased from a registered operator, other than
goods purchased as described in paragraph (c), the relevant documents issued by theseller and proof of payment;
(b) in the case of goods imported, the relevant bill of entry or other
document acceptable to the Commissioner which establishes proof of payment of tax;
(c) in the case of goods purchased through a registered operator acting as
the agent of the seller, the relevant documents issued by the registered operator and
proof of payment;
together with such other relevant information as the Controlling Officer may require
and, in the case of goods used in the construction of permanent buildings or
improvements, a certificate from the applicant stating that the goods were used for
such purpose.
(5) Not more than one application for a refund or refunds in terms of this section may
be submitted by the same person during any calendar month.
(6) Where any person to whom a refund has been made in terms of subsection (1) or
(2) in respect of goods referred to in paragraph (b) of the definition of "goods of a
capital nature" in subsection (8) fails or omits to use such goods within a period
which, in the opinion of the Controlling Officer , is reasonable in the circumstances
for the purposes specified in that paragraph or first uses the goods for other purposes,
he shall repay to the Controlling Officer an amount equal to the said refund.
(7) For the purposes of this section-
"building" means-
(a) any building or structure which is constructed on a farm and used
exclusively for agricultural purposes by a farmer who is licensed in terms of the
Farmers Licensing and Levy Act [Chapter 18:10] or who farms land in Communal
Land;
(b) any building or structure which is constructed on a registered mining
location as defined in the Mines and Minerals Act [Chapter 21:05] and used
exclusively for mining purposes; or
(c) any building constructed and used mainly for the purpose of operating
machinery which is contained in the building and is worked by steam, electricity,
water or other mechanical power; or
(d) any building constructed and used mainly for the purpose of carrying
out industrial research or scientific experiments into improved or new methods of
manufacture; or
(e) any building constructed and used mainly for the storage of goods or
materials which-
(i) are to be used by the owner of the building in the manufacture of other
goods or materials, or
(ii) are subjected by the owner of the building in the course of a trade to
any manufacturing process; or
(iii) having been manufactured or subjected by the owner of the building
in the course of a trade to any manufacturing process, have not yet been delivered to a
purchaser;
or
( f ) any building constructed and used mainly for the purposes of a trade
that consists in the manufacture of goods and materials, including any building used
for the welfare of workers employed in that trade but excluding any building used
mainly as a dwelling-house, retail shop or showroom or for the storage of goods or
materials; or
(g) any building constructed and used mainly for a hotel business in
respect of which a hotel liquor licence or casino licence, not being a temporary casino
licence, has been issued, including ancillary buildings, structures and works whichare, in the opinion of the Controlling Officer , used mainly in connection with the
hotel business; or
(h) any works for the prevention of pollution; or
(i) any building constructed and used mainly for international data
capture operations and additionally, or alternatively, for the assembly of computers;
or
( j) any building or structure constructed in whole or in part from goods
which are eligible for a rebate or refund of tax in terms of or pursuant to an agreement
entered into between the Government and a holder or tributor of a special mining
lease;
and includes any fencing or permanent sealing of the ground area surrounding such
building;
"calendar month" means any one of the twelve parts into which a year is ordinarily
divided in the calendar;
"goods of a capital nature" means-
(a) such plant or machinery as may be prescribed which is used
exclusively-
(i) for mining purposes on a registered mining location as defined in the
Mines and Minerals Act [Chapter 21:05]; or
(ii) for agricultural purposes on a farm in respect of which the farmer is
licensed in terms of the Farmers Licensing and Levy Act [Chapter 18:10] or on land
which is part of Communal Land; or
(iii) for the purposes of the business of a trader, auctioneer, motor dealer
or finance agent, in any fixed place of business of such trader, auctioneer, motor
dealer or finance agent; or
(iv) by a local authority; or
(v) by a body corporate established by an enactment;
or
(b) such plant or machinery as may be prescribed which the
Commissioner is satisfied is or will be used exclusively for manufacturing or
industrial purposes in, on or in connection with a factory, other than motor vehicles
intended or adapted for use on roads or capable of being so used; or
(c) goods that are eligible for a rebate or refund of tax in terms of or
pursuant to an agreement entered into between the Government and the holder or
tributor of a special mining lease; or
(d) such other goods as may be prescribed;
"improvements" means any addition to or alteration of a permanent building;
"purchased from a registered operator" includes a transaction under which a private
sale agreement is discounted with a finance agent;
"special mining lease" means a special mining lease issued under Part IX of the
Mines and Minerals Act [Chapter 21:05].
(8) Notwithstanding anything contained in this section, its provisions shall apply
only in respect of purchases, deemed purchases, acquisitions or importations by-
(a) local authorities or statutory corporations; or
(b) persons who carry on agricultural, hotel, industrial, manufacturing,
mining, international data capture or computer assembly operations within a growth
point area or who let movable or immovable property to a company which carries on
such operations in the growth point area where the lessor owns, directly or indirectly,
at least twenty-five per centum of the shares in the lessee company, if such purchases,
deemed purchases, acquisitions or importations are effected-
(i) on or after the declaration of the growth point area concerned; and (ii) exclusively for the purposes of such agricultural, hotel, industrial,
manufacturing, mining, international data capture or computer assembly operations,
as the case may be;
or
(c) persons who carry on agricultural, mining, manufacturing or industrial
operations if such purchases, deemed purchases, acquisitions or importations are of
goods of a capital nature or of goods used in the construction of buildings, which the
Controlling Officer is satisfied are or will be used exclusively in a new project; or
(d) persons who carry on exploration operations, development operations
or mining operations as defined in the Income Tax Act [Chapter 23:06], if such
purchases, deemed purchases, acquisitions or importations are of-
(i) goods of a capital nature; or
(ii) goods used in the construction of building;
which goods the Controlling Officer is satisfied are eligible for a
rebate or refund of tax in terms of or pursuant to an agreement between the
Government and the holder or tributor of a special mining lease.
(9) For the purposes of subsection (8)-
"growth point area" means an area which the Minister, by notice in a statutory
instrument, declares to be a growth point area for the purposes of this section:
Provided that in any such notice the Minister may limit the declaration so that it
applies in relation to particular businesses or operations or for particular purposes;
"local authority" means-
(a) a city or municipal council, town council, local board or rural district
council;
(b) any body declared by the President to be a local authority for the
purposes of the Interpretation Act [Chapter 1:01] which is not a body or authority
referred to in paragraph (a);
"new project" means an agricultural, mining, manufacturing or industrial project
which the Controlling Officer has approved as such for the purposes of paragraph (c)
of subsection (8);
"statutory corporation" means a body, other than a private society, incorporated by or
in terms of an enactment for special purposes specified in any enactment.
['Controlling Officer' substituted for Commissioner wherever it appeared by s. 36 of
and para 3 of Part VII of the Third Schedule to the Revenue Authority Act [Chapter
23:11]
28 Refunds to certain purchasers or clients
(1) In this section-
"export processing zone" means any part of Zimbabwe declared in terms of the
Export Processing Zones Act [Chapter 14:09], to be an export processing zone;
"licensed investor" means the holder of an investment licence issued in terms of the
Export Processing Zones Act [Chapter 14:09].
(2) The Controlling Officer may, on compliance by the purchaser or client concerned
with such terms and conditions as may be prescribed,24 refund to that purchaser or
client an amount calculated in terms of section thirty-two on-
['Controlling Officer' substituted for Commissioner by s. 36 of and para 3 of Part
VII of the Third Schedule to the Revenue Authority Act [Chapter 23:11].]
(a) any goods which are purchased by or services which are supplied to a
government, other than the Government of Zimbabwe, and which are necessary for
the management of such government's affairs in Zimbabwe, other than those relating
to any form of trading operations carried out by any department of, or body set up by,
such government; or (b) such goods or services as may be prescribed which are purchased by
or supplied to a person who-
(i) is not a citizen of Zimbabwe; and
(ii) is not permanently resident in Zimbabwe; and
(iii) is a person specified in the list published in terms of section 10 of the
Privileges and Immunities Act [Chapter 3:03], or is a representative or official of an
international or regional organization or agency specified in a notice published in
terms of section 7 of that Act; or
(c) any goods which are purchased by or services which are supplied to a
licensed investor in respect of operations conducted in an export processing zone:
Provided that no refund shall be made in terms of this section of any purchase or
supply effected more than six years before the application for the refund.
[Proviso to section 28(2) amended by s 41 of the Finance Act 17 of 1997 from 28
November 1997]
28A Refunds in respect of debts
(1) Where a registered operator proves to the satisfaction of the Controlling
Officer that -
(a) he has paid tax in terms of this act in respect of any sale; and
(b) he has not been able to recover from the purchaser the full price of the
goods or services that were the subject-matter of the sale; and
(c) there is no reasonable prospect of his recovering any further amount
from the purchaser concerned;
the Controlling Officer shall authorize a refund of the tax so paid, or such part of the
tax as relates to the unrecovered amount, as the case may be.
(2) The Controlling Officer shall not authorise a refund in terms of this section
unless the application therefor is received by him not more than six years after the
date of the sale concerned.
[Section 28A inserted by s 42 of the Finance Act 17 of 1997 with effect from 28
November 1997]
['Controlling Officer' substituted for Commissioner by s. 36 of and para 3 of Part
VII of the Third Schedule to the Revenue Authority Act [Chapter 23:11].]
29 Form of applications for refunds
Every application for a refund in terms of this Act shall be made on such form as may
be prescribed.
30 Refunds to be drawbacks
Any refund made in terms of this Act shall be regarded as a drawback and shall be
made from moneys received in terms of this Act.
31 Refunds to specified persons
(1) The Minister may, by statutory instrument-
(a) specify persons or classes of persons to whom refunds calculated in
terms of section thirty-two shall be made;
(b) grant refunds of such amount as he deems fit to bakers, millers and
dairies selling bread, maize-meal or milk to registered operators for resale;
and determine the circumstances in which such refunds shall be made.
(2) No refund shall be made in terms of subsection (1) unless the application
therefor is received by the Controlling Officer not more than six years after the date
on which the tax was paid.
[Section 31(2) amended by s 43 of the Finance Act 17 of 1997 with effect from
28 November 1997.'Controlling Officer' substituted for Commissioner by s. 36 of
and para 3 of Part VII of the Third Schedule to the Revenue Authority Act [Chapter
23:11] 32 Calculation of refunds
(1) Where any refund of tax or other moneys is payable in terms of this Act, such
refund shall be calculated as an amount equal to-
(a) in the case of tax paid by a registered operator or by a seller or
supplier whose goods or services have been sold or supplied, as the case may be, by a
registered operator acting as his agent, the tax so paid;
(b) in the case of imported goods, the tax on the import of such goods;
(c) in the case of goods purchased from a registered operator or from any
person through a registered operator, the amount charged to the purchaser by or on
behalf of the seller as tax or, if there is no amount so charged, such amount as may be
prescribed;
(d) in the case of services supplied by a registered operator or by any
person through a registered operator, the amount charged to the client by or on behalf
of the supplier as tax or, if there is no amount so charged, such amount as may be
prescribed;
(e) in the case of goods used in the construction of any permanent
building or improvement as defined in subsection (7) of section twenty-seven where
the applicant is not able to establish to the satisfaction of the Controlling Officer the
actual sale value of such goods-
(i) the specified percentage of thirty per centum of the cost of materials
and labour used in such construction; or
(ii) if the cost of materials and labour used in such construction has not
been distinguished from the gross costs of such construction, the specified percentage
of thirty per centum of seventy-five per centum of such gross costs, excluding the
value of any goods which are exempt from tax or for which separate provision has
been made for a refund of tax.
['Controlling Officer' substituted for Commissioner by s. 36 of and para 3 of Part
VII of the Third Schedule to the Revenue Authority Act [Chapter 23:11].]
(2) In paragraph (e) of subsection (1)-
"specified percentage" means the percentage equal to the rate of tax fixed for
the purposes of subsection (1) of section four in respect of goods referred to in
paragraph (e) of subsection (1).
PART VIII
GENERAL
33 Additional tax in event of default or omission.
(1) A person who is liable to pay tax in terms of Part II shall -
(a) if he fails to pay such tax, pay an amount of tax equal to the tax
chargeable; or
(b) if he willfully omits from his return submitted in terms of section
seventeen any amount which ought to have been included therein, pay an amount of
tax equal to the difference between the tax as calculated in respect of the amount
returned by him and the tax properly chargeable as determined by a revenue officer
after including the amount omitted; or
(c) if he knowingly makes any incorrect statement in any return referred
to in paragraph (b) which results or would, if accepted, result in the calculation of the
tax at an amount which is less than the tax properly chargeable, pay an amount of tax
equal to the difference between the tax as calculated in accordance with the return
make by him and the tax properly chargeable if the incorrect statement had not been
made; or
(d) if he fails to disclose in any return referred to in paragraph (b) any
facts which should be disclosed and the failure to disclose such facts results in thecalculation of the tax at an amount which is less than the tax properly chargeable, an
amount of tax equal 6to the difference between the tax as calculated in accordance
with the return made by him and the tax properly chargeable if the disclosure had
been made; or
(e) if he makes any statement which results or would, if accepted, result in
the granting of an exemption or refund to which he is not entitled, pay an amount
equal to the difference between the tax with which he was chargeable as a result of
his statement or would have been chargeable as a result of his statement had it been
accepted and the tax with which he is properly chargeable.
(2) The additional amounts for which provision is made under this section shall be
chargeable in cases where the amount of tax payable is estimated by a revenue officer
in terms of subsection (1) of section eighteen as well as in cases where such amount
or any part thereof is determined from the return rendered by the person liable to the
tax.
(3) The powers conferred upon a revenue officer by this section shall be in addition
to any right conferred upon him by this Act to take proceedings for the recovery of
any penalties for evading or avoiding assessment or the payment of tax or attempting
to do so.
(4) If a revenue officer is satisfied that the default in rendering a return or failing to
pay any tax referred to in subsection (1) was not due to any intent either to defraud
the revenue or to postpone the payment by the person liable to the tax, or that any
such omission, incorrect statement or failure to disclose facts was not due to any
intent to evade tax on the part of such person, he may remit such part or all of the
additional amount for which provision is made under this section as he may think fit.
(5) Notwithstanding subsection (4), a revenue officer may, either before or after an
assessment is issued, agree with the person liable to the tax on the additional amount
to be charged and the amount so agreed shall not be subject to any objection and
appeal:
Provided that if subsequently the revenue officer is of the opinion that the person
liable to the tax, at the time the additional amount was agreed, withheld information
which, had it been known to the revenue officer, would have resulted in his not
agreeing to that amount, the revenue officer may increase such agreed amount of
additional tax in such manner as he may consider to be appropriate.
[Section 33 substituted by section 31 of Act 18 of 2000 with effect from the year of
assessment beginning 1st January 2001]
34 Onus of proof
(1) Where any claim is made for exemption from or refund or remission of any tax in
accordance with this Act, the burden of proof shall lie upon the claimant to show that
he is entitled to such exemption, refund or remission.
(2) Where a registered operator claims that goods imported by him are intended for
resale in the normal course of his business as such, the burden of proof of that claim
shall lie upon him.
35 Objections
(1) Any person who is dissatisfied with any assessment or decision made by a
revenue officer under this Act may lodge with the Controlling Officer an objection in
writing giving in detail the grounds for his objection.
(2) An objection in terms of subsection (1) shall be delivered at the office of the
Controlling Officer or posted so as to reach his office not later than thirty days after
the person making the objection has been notified of the assessment or decision to
which the objection relates:
Provided that the Controlling Officer may, if he is satisfied that there are reasonablegrounds for the delay, accept an application lodged after the thirty days have elapsed.
(3) The Controlling Officer shall consider an objection lodged in terms of this
section and-
(a) may disallow it or allow it wholly or in part; and
(b) shall give the objector notice in writing of his decision and the reasons
therefor.
(4) If-
(a) no objection to an assessment or decision of a revenue officer has been
lodged in terms of this section, the assessment or decision shall become final and
binding;
(b) an objection lodged in terms of this section to an assessment or
decision of a revenue officer has been disallowed or withdrawn, wholly or in part, the
assessment or decision shall, to the extent of such disallowance or withdrawal,
become final and binding;
subject to any refund authorized in terms of section twenty-six or to the decision of
the Fiscal Appeal Court or the Supreme Court on an appeal against the assessment or
decision in terms of the Fiscal Appeal Court Act [Chapter 23:05].
36 Classification of goods for tax purposes
The following provisions of the Customs Act-
(a) section 87; and
(b) any rules set out in the customs tariff imposed in terms section 225 of
that Act;
shall apply, mutatis mutandis, in relation to the classification of goods for the purpose
of determining any tax payable under this Act, any reference in those provisions to
the Commissioner or an officer being construed, in relation to the tax referred to in
section four, as a reference respectively to -
(i) the Commissioner referred to in paragraph (a) of the definition of
"Controlling Officer" in subsection (1) of section two; or
(ii) a revenue officer referred to in paragraph (b) or (c) of the definition of
"revenue officer" in subsection (1) of section two.
[Section 36 substituted by s. 36 of , and para 5 of Part VII of the Third Schedule to
the Revenue Authority Act [Chapter 23:11].]
37 Liability of manager, etc.
(1) In this section-
"representative" means a person who at any time manages or conducts the business of
a trader, auctioneer, motor dealer or finance agent on his behalf, and "principal"
means such trader, auctioneer, motor dealer or finance agent.
(2) Subject to this section, every representative shall, to the extent of his capacity as
such, be in all respects subject to the same duties, responsibilities, liabilities and
penalties, and entitled to the same rights, as his principal.
(3) Any tax or any penalty referred to in section thirty-three shall be recoverable
from the representative, but to the extent only of any assets in his possession or under
his management, disposal or control, which belong to his principal.
(4) Any representative who pays any tax or any penalty referred to in section thirty-
three may recover from his principal, or retain or deduct out of any money in his
possession belonging to his principal, so much as is required to indemnify him for
such payment.
(5) Every representative shall be liable personally-
(a) for any penalty imposed upon him in any criminal proceedings in
terms of this Act;
(b) for any tax payable by him in his representative capacity if, while it remains unpaid, he disposes of or parts with any fund or money which is in his
possession or comes to him after the tax is payable when from or out of such fund or
money the tax could lawfully have been paid.
(6) Nothing in this section shall be construed as relieving the principal of any duty,
responsibility, liability or penalty imposed in terms of this Act:
Provided that the amount of any tax, or any penalty referred to in section thirty-three,
which is payable by the principal shall be reduced, respectively, by any amount of
such tax or penalty paid by or recovered from the representative.
37A Public officers of companies
(1) In this section - "public officer", in relation to a company, means the person who
is the company's public officer in terms of section 61 of the Income Tax Act [Chapter
23:06].
(2) Every notice, process or proceeding which under this Act may be given to, served
upon or taken against any company may be given to, served upon or taken against its
public officer, and if at any time there is no public officer then any such notice,
process or proceeding may be given to, served upon or taken against any officer or
person acting or appearing to act in the management of the business or affairs of the
company or as its agent.
(3) Every public officer shall be answerable for the doing of anything that is required
to be done under this Act by his company, and in case of default he shall be liable to
the penalties provided in respect of his company's default.
(4) Anything done by a public officer which he is required to do in his representative
capacity shall be deemed to have been done by his company.
(5) The absence or non-appointment of a public officer shall not exonerate any
company from the need to comply with this Act.
[ Section 37A inserted by s.18 of the Finance (No.2) Act 21 of 1999 with effect from
the 1st January 2000.]
38 Change, transfer, etc., of business to be notified
Any registered operator who-
(a) alters the name of his business; or
(b) transfers or sells his business; or
(c) transfers or sells any stock-in-trade or other assets of his business with
a view to the transfer or abandonment of such business; or
(d) changes the place at which he carries on his business;
shall, not later than seven days thereafter, give written notice of such alteration,
transfer, sale or change to the revenue officer.
(2) A registered operator who contravenes subsection (1) without reasonable excuse,
the proof whereof lies on him, shall be guilty of an offence and liable to a fine not
exceeding level seven or to imprisonment for a period not exceeding one year or to
both such fine and such imprisonment.
(3) For the purposes of this section-
"business" includes any branch of a business.
[New subss (2) and (3) inserted by the Criminal Penalties Amendment Act 22 of
2001, with effect from the 10th september, 2002.]
39 Recovery of tax and penalties
(1) Any tax and penalties payable under this Act shall be a debt due to the State and,
notwithstanding anything to the contrary contained in any law relating to magistrates
courts, any amount whatsoever due and payable under this Act shall be recoverable
by action in the court of the magistrate having jurisdiction in respect of the person by
whom such amount is payable under this Act.
(2) Nothing in subsection (1) shall be construed as depriving the State of any otherremedy for the recovery of tax or penalties mentioned in this Act or as exempting
from prosecution and punishment any person who is liable thereto under any other
section of this Act.
(3) In this section-
"tax" includes any interest due in respect of the payment of any tax, fine or penalty
under this Act.
40 Preservation of secrecy
(1) Any person who-
(a) is employed in carrying out the provisions of this Act; or
(b) is authorized to receive payment of tax; or
(c) examines records under the control or in the custody of the
Controlling Officer in terms of the laws relating to the Public Service, the collection
and safe custody of public moneys and the audit of public accounts;
shall, subject to this section, treat all the information that may come to his knowledge
in the exercise of his functions as secret and shall not use or divulge it in any way
whatsoever except for the purposes of this Act or any proceedings or prosecution in
terms of this Act.
(1a) Any person who contravenes subsection (1) shall be guilty of an offence and
liable to a fine not exceeding level six or to imprisonment for a period not exceeding
one year or to both such fine and such imprisonment.
[New subsec (1A) inserted by the Criminal Penalties Amendment Act 22 of 2001,
with effect from the 10th september, 2002.]
(2) The Minister may authorize the disclosure of such information for such statistical
purposes as he considers to be desirable.
(3) Notwithstanding subsection (1) or section 5 of the Income Tax Act [Chapter
23:06], the Commissioner as defined in subsection (1) of section 2 of that Act may-
(a) in the exercise of his functions under that Act ,use any information
coming to his knowledge in the exercise of his functions as Controlling Officer under
this act; and
(b) in the exercise of his functions as Controlling Officer under this Act,
use any information coming to his knowledge in the exercise of his functions as
Commissioner under that Act.
[Subsections (3) and (4) repealed and a new subsection (3) substituted by s. 36 of, and
para 6 of Part VII of the Third Schedule to the Revenue Authority Act 17 of 1999
[Chapter 23:11].]
41 Regulatory powers
(1) The Minister may make regulations prescribing anything which under this Act is
to be prescribed or which in his opinion is necessary or convenient to be prescribed
for carrying out or giving effect to this Act.
(2) Regulations in terms of subsection (1) may provide for the manner in which sales
of goods in respect of which, in terms of section eight, no tax is payable shall be
valued for the purpose of compiling the statement to be submitted in terms of
subsection (1) of section seventeen.
(3) Regulations in terms of subsection (1) may provide penalties for contraventions
thereof, but no such penalty shall exceed a fine of level three.
[New subs (3) inserted by the Criminal Penalties Amendment Act 22 of 2001, with
effect from the 10th september, 2002.]
42 Resolution of Parliament in respect of statutory instruments
If on one of the twenty-eight days on which Parliament sits next after any statutory
instrument made under this Act has been laid before it in pursuance of section 36 of
the Interpretation Act [Chapter 1:01] Parliament resolves that any such statutoryinstrument be repealed or amended, the Minister shall repeal or amend such statutory
instrument in accordance with the resolution of Parliament.
43 Contract price may be varied according to tax
(1) Whenever any tax is imposed or increased on any goods sold or service supplied
by the acceptance of an offer made before the tax was imposed or increased, the seller
may, in the absence of agreement to the contrary, recover from the purchaser as an
addition to the contract price a sum equal to any amount payable by reason of the said
tax or increase.
(2) Whenever any tax is withdrawn or decreased on any goods sold or service
supplied by the acceptance of an offer made before the tax was withdrawn or
decreased, the purchaser may, in the absence of agreement to the contrary, if the
seller has in respect of those goods or that service, as the case may be, had the benefit
of the withdrawal or decrease, deduct from the contract price a sum equal to the said
tax or decrease.
44 Rate of tax in relation to time of importation or entry
Notwithstanding anything to the contrary in Part VI, goods which are subject to tax in
terms of that Part shall be liable to the rate of tax that is applicable to those goods at
the time when they are imported or at the time when they are entered for
consumption, whichever is the later:
Provided that-
(i) except in the case of goods properly taken out of bond or in the
circumstances specified in provisos (ii) and (iii), the duty shall not be less than that
payable at the time of the importation;
(ii) if, within six months after the importation of the goods or after such
longer period as the Controlling Officer may allow, the importer satisfies the officer
designated in terms of the Customs Act to be the proper officer that the goods were
eligible for entry under a conditional exemption or remission of tax, the importer
shall be entitled to a refund of any excess tax paid by him;
['Controlling Officer' substituted for Director by s. 36 of and para 4 of Part VII of the
Third Schedule to the Revenue Authority Act No.17 of 1999 [Chapter 23:11].]
(iii) goods shall be eligible for entry under a conditional exemption or
remission of tax notwithstanding that the goods were temporarily imported in terms
of section 124 of the Customs Act before the conditional exemption or remission of
tax, as the case may be, became applicable to the goods.
45 Records
(1) Every registered operator shall keep records to the satisfaction of the revenue
officer and shall preserve them until his certificate is cancelled or for a period of not
less than six years after the completion of the transactions, acts or operations to which
they relate, whichever is the sooner.
(1a) Any person who contravenes subsection (1) without reasonable excuse, the
proof whereof lies on him, shall be guilty of an offence and liable to a fine not
exceeding level five or to imprisonment for a period not exceeding three months or to
both such fine and such imprisonment.
[New Sect (1a) inserted by the Criminal Penalties Amendment Act 22 of 2001 with
effect from the 10th September, 2002.]
(2) Any copy of a certificate shall, if it is certified to be a true copy by a person who
purports to be the officer having custody or control of records kept in relation to
certificates, be received in any court on production by any person and without further
proof as prima facie evidence of the facts therein stated.
46 Delegation of functions of Controlling Officer
Without derogation from any other law relating to the delegation of functions, theprovisions of -
(a) the Income Tax Act [Chapter 23:06] relating to the delegation of the
Commissioner's functions; and
(b) the Customs and Excise Act [Chapter 23:02] relating to the delegation
of the Director's functions;
shall apply, mutatis mutandis, in relation to the delegation of the powers of the
Commissioner or Director, as the case may be, under this Act.
[Section 46 inserted by s 32 of the Finance Act 29 of 1998 with effect from 31
December 1998.]
47 Powers of entry, search, etc.
(1) A revenue officer may, if he has reasonable grounds for believing that it is
necessary to do so for the enforcement of any tax in terms of this Act-
(a) at any reasonable time enter into any place of business of a trader,
auctioneer, motor dealer or finance agent;
(b) require any person to produce for inspection any-
(i) book, record, statement, account, trade list, stock list or other
document; or
(ii) file, schedule, working paper or calculation relating to the
determination of a taxpayer's income, expenses or liability for tax;
(c) require any person to prepare and additionally, or alternatively, to
produce for inspection a print-out or other reproduction of any information stored in a
computer or other information retrieval system;
(d) take possession of any document or other thing referred to in
paragraph (b) or (c) for so long as may be necessary for the purpose of any
examination, investigation, trial or inquiry;
(e) require any person reasonably suspected of having committed an
offence under this Act or any person who may be able to supply information in
connection with a suspected offence to give his name and address;
( f ) pursue any inquiry which may be deemed by him to be necessary to
ascertain whether the provisions of this Act are being complied with.
(2) Any person who-
(a) falsely holds himself out to be a revenue officer; or
(b) hinders, obstructs or assaults a revenue officer in the performance of
his duties or the exercise of his powers; or
(c) wilfully fails to comply with any lawful demand made by a revenue
officer in the performance of his duties or the exercise of his powers;
shall be guilty of an offence and liable to a fine not exceeding level seven or to
imprisonment for a period not exceeding six months, or to both such fine and such
imprisonment.
[Penalty increased by Section 61 of the Finance Act 18 of 2000, amended by the
Criminal Penalties Amendment Act 22 of 2001 with effect from 10th September,
2002, and increased by the Finance Act 15 of 2002 with effect from the 30th
December, 2002.]
48 Offences and penalties
(1) Any person who wilfully makes-
(a) a false statement or declaration for the purposes of obtaining a refund
of or exemption from tax or of otherwise avoiding the payment of tax; or
(b) a false entry on any statement or other document required to be made
or kept under this Act;
shall be guilty of an offence and liable to a fine not exceeding level eight or to
imprisonment for a period not exceeding two years or to both such fine and suchimprisonment.
[Penalty increased by Section 61 of the Finance Act 18 of 2000, amended by the
Criminal Penalties Amendment Act 22 of 2001 with effect from 10th September,
2002, and confirmed by the Finance Act 15 of 2002 with effect from the 30th
December, 2002.]
[Penalties in Subsections (1a), (2), (3), and (4) increased by the Finance Act 18 of
2000 with effect from the 12th January, 2001, and repealed by the Criminal Penalties
Amendment Act 22 of 2001, with effect from the 20th May, 2002.]
(5) A conviction for an offence in terms of this Act shall not exempt the person
convicted from the payment of any tax or penalties payable in terms of this Act.
(6) On the conviction of a person for an offence in terms of this Act the court
convicting the accused may, on the application of the prosecutor and in addition to
any penalty which it may impose, give summary judgment against the accused in
favour of the Controlling Officer for the amount of any tax which has not been paid,
including any penalty to which that person may be liable in terms of subsection (1) of
section thirty-three.
['Controlling Officer' substituted for Minister by s. 36 of and para 7 of Part VII of the
Third Schedule to the Revenue Authority Act [Chapter 23:11].]
(7) Judgment given by a court in terms of subsection (6) shall have the same effect
and may be executed in the same manner as if the judgment had been given in a civil
action instituted in the court:
49 Imposition of fine by Controlling Officer
(1) If a person alleged to be an offender under this Act (hereinafter called the alleged
offender) agrees to pay a specified fine proposed by the Controlling Officer, which
does not exceed the maximum penalty provided by this Act for the offence in
question, the Controlling officer may impose such fine on the alleged offender:
Provided that, if criminal proceedings have been instituted against the alleged
offender for such offence, the power conferred by this subsection shall not be
exercised without the prior approval of the Attorney-General.
(2) The Controlling Officer shall, at the request of the alleged offender, furnish him
with a certificate setting out the nature of the offence, the date of its occurrence and
the fine imposed under subsection (1), and such certificate may be used as prima facie
proof of the facts stated therein.
(3) If a fine imposed in terms of subsection (1) is not paid on demand, the
Controlling Officer may institute civil action in a court of competent jurisdiction for
the recovery of such fine.
(4) The imposition of a fine under subsection (1) shall not be treated as a conviction
of an alleged offender of a criminal offence and no prosecution for the offence in
question shall thereafter be competent.
(5) A fine imposed in terms of this section shall not exempt the person concerned
from the payment of any tax or penalties payable in terms of this Act.
50 Payment by instalments
The Controlling Officer may permit, subject to such conditions as he thinks fit,
including the payment of interest at a rate to be prescribed, any fine or penalty
imposed by him under this Act or any tax which is payable under this Act to be paid
by instalments of such amounts and at such times as he may fix.
51 Tax avoidance generally
(1) Where any transaction, operation or scheme has been entered into or carried out
which-
(a) has the effect of avoiding or postponing liability for sales tax or of
reducing the amount of such liability; and (b) in the opinion of the Controlling Officer, having regard to the
circumstances under which the transaction, operation or scheme was entered into or
carried out-
(i) was entered into or carried out by means or in a manner which would
not normally be employed in the entering into or carrying out of a transaction,
operation or scheme of the nature of the transaction, operation or scheme in question;
or
(ii) has created rights or obligations which would not normally be created
between persons dealing at arm's length under a transaction, operation or scheme of
the nature of the transaction, operation or scheme in question;
and the Controlling Officer is of the opinion that the avoidance or postponement of
such liability or the reduction of the amount of such liability was the sole purpose or
one of the main purposes of the transaction, operation or scheme, the Controlling
Officer shall determine the liability for sales tax and the amount thereof as if the
transaction, operation or scheme had not been entered into or carried out, or in such
manner as in the circumstances of the case he considers appropriate for the prevention
or diminution of such avoidance, postponement or reduction.
(2) Subsection (1) shall apply to any transaction, operation or scheme-
(a) whether entered into or carried out before, on or after the 20th
January, 1995; and
(b) whether or not it involves the alienation of property.
52 Withholding of amounts payable under contracts with State or statutory
corporations
(1) In this section-
"contract" means a contract in terms of which the State or a statutory corporation is
obliged to pay one or more persons an amount or amounts totalling or aggregating
one hundred and fifty thousand dollars or more, but does not include-
(a) an agreement for the settlement of a delictual claim against the State
or a statutory corporation; or
(b) any other class of agreements that may be prescribed;
"payee" means a person to whom any amount is payable in terms of a contract;
"paying officer" means an officer or employee of the State or a statutory corporation
who is responsible for paying a payee any amount due to him in terms of a contract.
(2) Subject to this section, unless a payee satisfies the paying officer that-
(a) he has furnished a statement under section seventeen for the last
month for which such a statement is due; or
(b) he has made arrangements satisfactory to the Commissioner for the
furnishing of such a statement;
the paying officer shall withhold ten per centum of each amount payable to the payee
under the contract concerned, and shall remit each amount so withheld to the
Commissioner on or before the last day of the month following that in which the
payment was made.
(3) Where a paying officer has withheld any amount in terms of subsection (2) he
shall furnish the payee concerned with a certificate, in a form approved by the
Commissioner, showing the amount so withheld.
(4) The Commissioner shall retain any amount remitted to him under subsection (2)
until the tax payable by the payee concerned for the month referred to in that
subsection has been assessed, whereupon-
(a) the amount shall be allowed as a credit against the tax so payable by
the payee; or
(b) where the amount exceeds the tax so payable by the payee, the
Commissioner shall forthwith refund the excess to the payee.
(5) No action shall lie against the State, statutory corporation or a paying officer in
respect of withholding of any amount in terms of this section, nor shall such
withholding constitute a breach of the contract concerned.
(6) A person who concludes a contract on behalf of the State or a statutory
corporation shall take all necessary steps to ensure that the person with whom the
contract is concluded is made aware of the provisions of this section:
Provided that a failure to comply with this subsection shall not relieve a paying
officer of his obligations under this section.
