TAX MATTERS: Tax authorities tighten noose

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The promulgation of Statutory Instrument 33 of 2019 will forever be remembered as one legislative instruments that complicated, inter alia, taxation in Zimbabwe.
Since its inception, there has been a couple of other legislative instruments which, when interpreted left both the regulator and the taxpayer at odds in terms of interpretation thereof.
The transition from a multicurrency system to a mono-currency in 2019 was adopted through introduction of SI 142 which prohibited the use of foreign currency.

However, operators continued to trade in foreign currency but remitted taxes in Zimbabwean Dollar.
In light of the laws of payment of taxes in foreign currency introduced in 2009, the fiscus has significantly been prejudiced because on the one hand the exchange rate plummeted while the American Dollar remained stagnant.