Tax administrations 

implement tax law. Their main task is to deal with taxpayers and collect
the right amount of tax. Various tax incentives have been introduced in an attempt to grow
foreign direct investment (FDI). A new Stock Exchange has recently been created at Victoria
Falls, where their listed shares will be denominated in foreign currency. This is still in its
infancy and is designed to attract foreign investors. No other significant developments have
occurred.

PwC Zimbabwe supports clients with the local knowledge and skills of its people and with
access to a broad range of other professionals across the PwC global network of firms. This is
especially true regarding the close relationship that the Zimbabwe office has with other firms
across Africa

tax administration involves the registration, assessment, returns, collection, compliance

monitoring, compliance enforcement, sanction, taxpayer's education and awareness and
any other activity that can improve the efficiency and effectiveness of taxation.

The tax year-end is 31 December each year. Applications may be made for a different year-
end if good reasons are given (e.g. to comply with the international group year-end). In the
first year of trade, a longer or shorter period than 12 months may be accepted to tie in with a
future year-end.

Zimbabwe has a system of ’Final Deduction of PAYE’ by the employer, and the majority of
individual taxpayers are not required to lodge tax returns, except in specified situations (such
as where there are other sources of income or an employee changes employment during the
course of the year of assessment).

 Zimbabwe legislation does contain basic anti-avoidance sections that empower the
Commissioner General to disregard the implications of a transaction or scheme if it can be
proven that:

 such transaction or scheme had been entered into to avoid or postpone the payment of
any duty or levy imposed by the Act
 it was entered into or carried out by means or in a manner that 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 has created rights or
obligations that would not normally be created between persons dealing at arm's
length under a transaction, operation, or scheme of nature of the transaction,
operation, or scheme in question, and
 was entered into or carried out solely or mainly for the purposes of the avoidance or
the postponement of liability for the payment of any tax duty or levy.
The Commissioner General may, at his sole discretion, impose this legislation on any
transaction or scheme, which will place the onus of proof on the taxpayer to prove that
any/all of the requirements noted above will not be applicable to the transaction or scheme.

Good tax treaty partners co-operate with other revenue authorities to prevent tax evasion and
avoidance. In a globalise economy, the taxation of income on a world-wide basis while
applying the residence principle is possible only if there is a full and efficient exchange of
information between revenue authorities. The information requested from tax treaty partners
should be relevant to a specific liability covered by tax treaties, imply a significant tax
liability or principle of law, be obtainable under domestic laws of both competent authorities,
and be used only in a manner prescribed by law or treaty. The competent authority receiving
a request should take the measures necessary to provide prompt assistance as if its own taxes
were at stake. In a mutual agreement procedure, good administrative practices include
providing position papers with sufficient information to identify the basis on which
adjustments have been made and restricting issues to major questions of facts and law. Since
tax treaties provide the main legal basis for the exchange of information, administrative
arrangements are necessary to define the scope and contents of simultaneous audits and other
assistance.