‘Vague’ tax laws worry Innscor

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INNSCOR Africa (Innscor) says difficulties relating to uncertain tax law interpretations could negatively affect its results for the current fiscal year.
The light manufacturing group said there are increasing complications arising from the wording of the tax legislation in Zimbabwe, particularly in relation to the currency of settlement for certain taxes, which gives rise to varying interpretations.

“The group has several unresolved tax matters with the Zimbabwe Revenue Authority (Zimra) arising from the differences in interpretation of the tax legislation.
“Some of these matters are in the courts, while some are being discussed between the group and Zimra,” Innscor said in a recent circular.
“During the financial year ended June 30, 2022, a judgment was passed in the group’s favour with respect to canteen meals for factory workers. However, the issue of management fees is still with the courts to determine Zimra’s claim, which includes interest and penalties.”