Zimra Loses Tax Records: What This Means for Companies

The Zimbabwe Revenue Authority (Zimra) has lost tax records dating back to six years ago, according to a report by NewsHub.

The tax authority has not explained how the records were lost, but there is speculation that its digital repository and server crashed. Sources say that Zimra lacks a reliable backup system for its data.

Zimra has asked its clients to resubmit their Pay as You Earn (Paye) P2 forms, Valued Added Tax (Vat), and Income Tax (ITC) records stretching to 2017.

The revenue authority has said that the resubmissions are necessary because the original records are “outstanding.” However, many companies that NewsHub spoke to say that they are up to date with their submissions.

The loss of tax records could have a significant impact on Zimra’s revenue collection efforts. Economists say that it is likely that many companies will take advantage of the situation to evade taxes.

The loss of tax records is also a major security risk. The data could be used by criminals to commit identity theft or fraud.

Zimra has not yet said how it plans to prevent further data loss.