The Sunday Mail
Parliament is keen to investigate reasons behind the Zimbabwe Revenue Authority (Zimra)’s proposal for the suspension of the whistle-blowing initiative meant to fight corruption.
President Mnangagwa’s administration has promised zero tolerance to corruption as Government pushes for economic growth.
World over, whistle-blowing is renowned as one of the best ways of curbing tax evasion.
Zimra’s decision comes amid rising concerns that many businesses and individuals are evading tax payment in Zimbabwe.
Whistle-blowing could be the panacea to this challenge.
However, addressing participants at the Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting last week, Zimra Commissioner General, Ms Faith Mazani said the tax collector had noted the abuse of the whistle-blowing facility and was engaging Government to stop the practice.
In Zimbabwe, whistle-blowing was introduced in 2001 as a way of encouraging members of the public to come forward with tax evasion evidence to the tax collector.
The Zimra Act (Chapter 23:11) Section 34 B empowers the Commissioner General to reward qualifying persons who bring credible evidence with 10 percent of the total value recouped. However, the Authority is now seeking to quash the practice.
“That (whistle-blowing) is a problem area for us,” Ms Mazani told the ZNCC breakfast meeting.
“Only parastatals and big corporates have been targeted because that is where the big money is. We have discussed with the relevant ministry that there is need to repeal it,” she said.
Zimra’s quest has caught the eye of the Parliamentary Portfolio Committee on Budget, Finance and Economic Development. The Committee is not happy with the proposal.
In an interview with The Sunday Mail Business, chairperson Honourable Felix Mhona said his committee will summon Zimra and seek to understand the Authority’s decision. He argued that whistle-blowing is one of the best ways to fight corruption and tax evasion.
In the United States for example, the Internal Revenue Services (IRS) has, since 2006, managed to collect about US$4 billion from delinquent businesses and individuals using information submitted by whistle-blowers. Hon Mhona said energy should be expended on ensuring the whistle-blowers’ safety. However, he highlighted that businesses accused of tax evasion should be treated as not guilty until proven guilty as has been the case.
“Corruption has become cancerous in this country and whistle-blowing is a noble tool to mitigate this scourge,” said Hon Mhona.
“However, it is important to uphold the accused’s presumption of innocence as enshrined in our Constitution.
“We (the committee) will summon Zimra to hear their side of the story in line with the Audi alteram partem rule,” he said.
The Member of Parliament said his committee will do its oversight role without fear or favour in line with Government’s zero tolerance to corruption. The Zimra board, chaired by Mrs Willia Bonyongwe, was recently dissolved. By the time of going to print yesterday, the tax collector had not responded to emailed questions sent to its Public Relations department. Zimra has been non-committal in disclosing amounts of money recovered through whistle-blowers.
