The Sunday Mail
Dumisani Nsingo
Bulawayo Bureau
The Zimbabwe Revenue Authority (Zimra) has recovered $90 million in unpaid taxes over the past 10 years through the whistleblower facility, as it intensifies efforts to mop up revenue from non-compliant businesses. The taxman used only $7,7 million to pay off informants during the period.
Zimra head of corporate communications Mr Francis Chimanda told The Sunday Mail Business in e-mailed responses that the whistleblower facility had proved to be handy in accounting for non-compliant taxpayers.
“The whistleblower facility has been effective in that it has assisted Zimra in quickly exposing non-compliant taxpayers who prejudice the State of revenue.
“By its nature, the facility results in expeditious conclusion of cases as the information and evidence supplied by whistleblowers is, in most instances, very accurate and takes less resources to confirm and recover the money,” he said.
In 2001, Government introduced the facility, which is enshrined in the Zimra Act, to enable informants to uncover malpractices such as tax evasion by individuals and companies. In essence, persons who submit information leading to the recovery of undeclared tax revenue are entitled to a reward equivalent to 10 percent of the amount recovered.
“The amount paid to the whistleblowers from 2009 to date as rewards is $7,7 million. From 2009 to date, we have recovered $87,9 million through the whistleblower facility,” said Mr Chimanda.
Zimra has come up with a number of measures and strategies to ensure that only deserving informants are rewarded.
However, Finance and Economic Development Minister Professor Mthuli Ncube indicated in his 2019 National Budget that the facility was prone to abuse.
But Zimra insists that the system is watertight.
Mr Chimanda added: “There are procedures in place to guide the reward to informants; thorough interviews are conducted on potential whistleblowers reporting cases to determine eligibility.
“Whistleblowers are required to submit credible evidence to support the alleged tax evasion and information submitted should be specific, leading to the quick detection of the reported offence.”
According to Section 34B, subsection 2 of the Zimra Act, the commissioner-general may, with the approval of the Finance Minister, award any person, not being an employee of the authority, or a near relative of an employee of the authority, a monetary reward for information provided or any measure taken which results in detection of smuggling or any illegal and underhand activities and of the recovery of revenue which would otherwise have been lost.
Mr Chimanda also said an internal lifestyle audit carried out at the revenue collector in 2019 led to the recovery of ill-gotten wealth by some of its officers.
“The lifestyle audits have been successful. They have led to recovery of proceeds of crime as they revealed officers who were leaving outside their means. A total of 34 officers failed lifestyle audits in 2019 and appropriate action was taken,” he said.
