2018 Zimra Annual Report PDF

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2018 A NNUA L R EP O RT
We are here to serve...
ABOUT US
ABOUT US
OUR VISION
To be a beacon of excellence in the provision of fiscal services
and facilitation of trade andOur Vision
travel.
To be a beacon of excellence
OUR MISSION STATEMENT
in the provision of fiscal
services and facilitation of
trade and travel.
Our mission is to promote economic development through
efficient revenue generation and trade facilitation. This is
achieved by: Inter ren
cy
gri
ty n spa
Developing competent and motivated staff; Tra
Our Mission
Using environmentally sustainable processes; and
Engaging
To promote Our Mandate
with the global community in a socially
economic
development through way.
responsible efficient Core Derived from the Revenue
revenue generation and trade Values Authority Act (Chapter 23:11)
facilitation. This is achieved by: and other subsidiary legislation, to:
OUR MANDATE
• Developing competent and
Fairness
• Collect revenue;
motivated staff; • Facilitate trade and travel;
• Using environmentally • Advise Government on fiscal
The Zimbabwe
sustainable Revenue
processes; and Authority derives its mandate from the
and economic matters;
• EngagingAuthority
Revenue with the global
Act (Chapter 23:11) and other civil
• Protect subsidiary
society.
community in a socially
legislation. Its mandate is to:
responsible way.
Collect revenue;
Facilitate trade and travel;
Advise Government on fiscal and economic matters;
Protect civil society.
Table of Contents
TABLE OF CONTENTS ........................................................................................................................ 1
ZIMRA QUALITY POLICY.................................................................................................................2
LIST OF ABBREVIATIONS ................................................................................................................... 3
BOARD CHAIR’S FOREWORD ....................................................................................................... 4
COMMISSIONER GENERAL’S MESSAGE ............................................................................................. 7
ZIMRA EXECUTIVE MANAGEMENT...............................................................................................
2018 OBJECTIVES EVALUATION ...................................................................................................... 11
1. REVENUE MOBILISATION ............................................................................................................ 13
1.1 Economic Overview .......................................................................................................... 13
1.2 Revenue Performance ........................................................................................................ 13
1.3 Growing Tax Base .............................................................................................................. 19
1.4 Tax Management ............................................................................................................... 19
1.5 Plugging Revenue Leakages ............................................................................................... 22
1.6 Compliance Monitoring .................................................................................................... 23
2. TRADE FACILITATION .................................................................................................................. 24
2.1 Border Efficiency Management.......................................................................................... 24
3. SUPPORTIVE LEGISLATION .......................................................................................................... 26
4. OPERATIONAL EFFICIENCY ......................................................................................................... 28
4.1 Technological Innovation .................................................................................................. 28
4.2 Human Capital .................................................................................................................. 28
4.3 Change Management ........................................................................................................ 31
4.4 Strategic Partnerships ......................................................................................................... 33
5. GOOD GOVERNANCE................................................................................................................. 37
5.1 Board Constitution and Composition................................................................................ 37
5.6 Ethical Issues ...................................................................................................................... 4 1
5.7 Social Responsibility .......................................................................................................... 4 2
5.8 Standards (IPSAS, ISO, Procurement) ................................................................................. 4 2
5.9 Audit and Risk Management ............................................................................................. 4 4
5.10 Sustainability Reporting ..................................................................................................... 4 5
5.11 Public Disclosure ................................................................................................................ 4 6
6. SUFFICIENT RESOURCES ............................................................................................................. 4 8
6.1 EXPENDITURE ANALYSIS .................................................................................................. 4 8
7 . AUDITED FINANCIAL STATEMENTS ................................................................................... 5 1
8. CLIENTS CHARTER ..................................................................................................................... 112
7.1. Core Values ................................................................................................................... 112
8.2 Service Delivery............................................................................................................... 112
8.3 ZIMRA’s Obligations to Clients ........................................................................................ 112
8.4 Information ..................................................................................................................... 113
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Paying taxes and duties on time and in full builds and dignifies Zimbabwe
2018 ANNUAL REPORT

Zimra Quality Policy
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2018 ANNUAL REPORT

List of Abbreviations
AEO Authorised Economic Operator OSBP One Stop Border Post

AfDB African Development Bank PAYE Pay As You Earn
AIDS Acquired Immune Deficiency Syndrome PCA Post Clearance Audit
ASYCUDA Automated Systems for Customs Data PDAs Personal Digital Assistants
ATAF African Tax Administration Forum PPPs Public Private Partnerships
BEPS Base Erosion and Profit Shifting PRINCE2 Projects In Controlled Environments
BURS Botswana Unified Revenue Services QMS Quality Management System
CAATs Computer Assisted Auditing Techniques RBZ Reserve Bank of Zimbabwe
CBN Collective Bargaining Negotiations RIB Removal In Bond
CGT Capital Gains Tax RTGS Real Time Gross Settlement
CGWT Capital Gains Withholding Tax SADC Southern African Development
COMESA Common Market for Eastern and Comunity
Southern Africa SAP Systems Application and Product
DFIR Dividends, Fees, Interest and SARS South African Revenue Services
Remittances SOC Security Operations Centre
DGC Disciplinary and Grievances Committee SIEM Security Incident and Event
EPA European Partnership Agreement Management
GDP Gross Domestic Product TADAT Tax Administration Diagnostic
HS 2017 Harmonised System 2017 Assessment Tool
IAS International Accounting Standards TIP Temporary Import Permit
ICT Information Communication UNCTAD United Nations Conference on Trade
Technology and Development
IFRS International Financial Reporting VAT Value Added Tax
Standards WAN Wide Area Network
IMF International Monetary Fund WCO World Customs Organisation
IPSAS International Public Sector Accounting WTO World Trade Organisation
Standards ZCBTA Zimbabwe Cross Border Traders’
IRBM Integrated Results Based Management Association
ISIC International Standard Industrial ZDF Zimbabwe Defence Forces
Classification ZIMRA Zimbabwe Revenue Authority
ISO International Standards Organisation ZIMSTAT Zimbabwe National Statistics Agency
LAN Local Area Network ZINARA Zimbabwe National Roads
MM Modigliani–Miller Administration
MOFED Ministry of Finance and Economic ZRA Zambia Revenue Authority
Development
NEC National Employment Council
OPC Office of the President and Cabinet
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2018 ANNUAL REPORT

Board Chair’s Foreword
INTRODUCTION
It gives me great pleasure to present on behalf of Generally, the operating environment for the year
the Zimbabwe Revenue Authority (ZIMRA) Board, was characterised by the following factors:
the Annual Report of ZIMRA for the year ended 31
December 2018.
Inflation
As a new Board, we are grateful to the Minister
Spiraling year on year inflation which started in January
of Finance and Economic Development for the
2018 at 3.52%, closing at 31.01% in December 2018
confidence bestowed on us, on our appointment on
was a major threat to economic growth.
20 December 2018 and the opportunity to serve our
country in this capacity. We pledge our commitment
and dedication to the delivery of ZIMRA mandate.
Foreign Currency shortages
Foreign currency shortages persisted throughout the

OPERATING ENVIRONMENT FOR 2018 year resulting in the Central Bank introducing a foreign
currency allocation system as an intervention for
The year 2018 started on a high note with great
strategic imports which include petroleum products
anticipation of growth and development across all
and basic commodities.
sectors of the economy. Gross Domestic Product
(GDP) was projected to grow by 6.3%, after October
2018 review.
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2018 ANNUAL REPORT

Balance of Payments Corporate Governance
The country being a net importer of petroleum ZIMRA is an entity that upholds and abides by
products, raw materials and capital goods had a trade corporate governance requirements. The year ushered
deficit of US$2.2 billion in 2018 due to depressed in a new corporate governance framework for public
exports. Exports for 2018 mainly comprised of entities; the Public Entities Corporate Governance
tobacco (23%) and minerals (20%). Government Act [Chapter10:31] and the Public Entities Corporate
pledged to support export-oriented production, Governance (General) Regulations 2018. A number
prioritise availability of foreign currency towards of milestones were undertaken to fully align ZIMRA’s
import substitution production, value addition and corporate governance practices to the requirements
beneficiation of mining and agricultural output to of the new governance framework.
increase exports competitiveness.
The previous Board’s term was terminated on 1

The constrained money supply would need October 2018. The Minister announced the new
government to intervene through liberalisation of the Board’s appointment on 20 December 2018 for a
foreign exchange market. The Fiscus would benefit three (3) year term with effect from 4 January 2019.
from improved valuation of imports using favourable
exchange rates hence broaden the tax base.
Executive Management Appointments
The following executive management appointments

ZIMRA Board Mandate
were made in 2018: -
Despite the challenges facing the economy, ZIMRA
• Mr Rameck Masaire was appointed
instituted a cocktail of measures to enhance revenue
Commissioner Domestic Taxes with effect
collection, promote tax compliance, improve
from 31 August 2018;
operational efficiency and ensure convenience to the
• Mr Joey Shumbamhini was appointed Director
tax-payers as it stepped up efforts to;
Strategy, Research and Modernisation with
• Broaden the tax base;
effect from 31 August 2018;
• Fight corruption;
• Mr John Chakasikwa was appointed
• Manage the tax debt; and Executive Assistant to the Commissioner
General with effect from 31 August 2018;
• Automate and modernise.
• Mr Patrick Mwashita was appointed Director
Finance, Administration and Infrastructure
Technological Investments
with effect from 11 September 2018;
A consultant was appointed to assess the strengths and
• Mrs Betty Chimbera was appointed Director
vulnerabilities of systems and procedures to derive
Human Capital with effect from 11 September
full value for technological investments. The results
2018;
of the health check informed our plans for Revenue
• Mr Denias Kagande was appointed Principal
Assurance and ICT system improvements with the
Procurement Manager with effect from 01
necessary controls.
October 2018;
• Mr Nesbert Mutsaka was appointed Director
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2018 ANNUAL REPORT

Internal Audit and Risk Management with Gratitude
effect from 02 November 2018.
I would want to express my sincere gratitude to the
previous ZIMRA Board, Management and Staff for
their commitment, unity of purpose and unwavering
Strategic Focus
determination to serve the nation.
A new 5-year Strategic Plan for the Authority running
from 2019-2023 has been put in place and will guide
the strategic focus and interventions. The new board Last but not least, my appreciation goes to the
of directors and a new five-year Strategic Plan are a compliant taxpayers without whose contribution
perfect opportunity for bringing new thinking into this ZIMRA’s efforts would be futile. Their contribution to
important institution. The Board, Management and building Zimbabwe, especially at a time like this when
Staff take seriously and are committed to the strategic the thrust is to sustain the economy mainly from
role ZIMRA plays in the economic development of domestic resources requires even more recognition. I
this country. call upon all taxpayers to pay their taxes and duties on
time and in full, to build a middle income economy
by 2030.
Thank you and God bless you.
Mr C Jokonya
ZIMRA Board Chairperson
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2018 ANNUAL REPORT

Commissioner General’s Message
• Realised the need to transform and reform the

INTRODUCTION
person before transforming the organisation.
It is a great privilege and challenge to lead ZIMRA
• Reviewed the effectiveness of our processes
towards achieving its mandate as the country is in a
and systems against the dynamics of the
state of transformation brought about by the new
environment within the parameters of our
dispensation`s mantra, “Zimbabwe is Open for
core competencies, based on key Performance
Business”.
Outcome Areas (POAs) for improved
efficiency.
In tandem with our core values of Integrity,
• Engaged key stakeholders to build strategic
Transparency and Fairness; our attention was on
partnerships as a collective responsibility.
improved service delivery and reduced delays in
making decisions for Taxpayers, to instill renewed • Identified critical projects, prioritised the
hope and expectation in the economy, and the public projects and embraced a project management
in general. methodology.
This thrust was achieved across the Authority through

HIGHLIGHTS FOR THE YEAR Performance Measurement at divisional, sectional
Our focus was on People, Processes, Partnerships and and individual levels.
Projects/Programmes (4Ps) as we:
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2018 ANNUAL REPORT

Revenue Performance development. This development will go a
ZIMRA’s thrust and focus for 2018 was on enhancing long way in facilitating trade and travel.
revenue collections for the fiscus. The Authority
managed to surpass its set target by reaching the Systems and Processes
US$5 billion mark. This positive performance was • The e-services platform that had some
attributed, in part to the revision of the Intermediated challenges has now been stabilised.
Money Transfer Tax, price effect, improved efficiency
• The ASYCUDA World was upgraded and
and effectiveness, and enhanced compliance level
commissioned in June 2018, with three new
from taxpayers.
servers now up and running.
• The Electronic Cargo Tracking System (ECTS)
The Authority managed to make remarkable was improved to curb transit fraud and more
achievements in 2018 by reaching a number of seals were purchased to expand sealing for
milestones which include, among others: other import offences.
• Data matching and third party information
verification assisted in widening the tax base
CONCLUSION
to enhance revenue collections.
The above developments show that the Authority has
made tremendous progress with regard to revenue
Compliance enhancement measures, which will, indeed go a
• The launch of taxpayer education and long way in ensuring that the fiscus is well-resourced
engagement programs went a long way in to finance different Government programmes and
comprehensively enhancing voluntary tax projects.
compliance.
• A dedicated team was set up to follow up ZIMRA will work around the clock to ensure that
on the ballooning fiscal debt and improve this positive trend is carried over to 2019, with more
compliance. revenue enhancement measures being put in place.
• The tax amnesty facility and subsequent These measures include strengthening operational
voluntary disclosure program assisted efficiency, improvement and modernisation of
defaulting taxpayers to regularise their tax systems, improved voluntary compliance and
affairs. reduction of the debt bill.
Operational Efficiency Thank you.

• The introduction of Tax Administration
Diagnostic Assessment Tool (TADAT) is assisting
in strengthening the internal operating systems.
The assessment was done by the International
Monetary Fund (IMF). Ms F Mazani
ZIMRA Commissioner General
• The Ministry of Finance and Economic
Development availed funding towards
Beitbridge Border Post infrastructural
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2018 ANNUAL REPORT

ZIMRA Executive Management
Faith Mazani
Commissioner General
Happias Kuzvinzwa Rameck Masaire Charles Jaure

Commissioner: Customs & Excise Commissioner: Domestic Taxes Commissioner: Revenue
Assurance and Special
Projects
Florence Jambwa
Director : Legal Services
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2018 ANNUAL REPORT

N esbert Mutsaka Joey S humbamhini
Director : I nternal Audit & Risk Director: Strategy , Research and B etty Chimbera
M anagement M odernisation Director : H uman Capital
S hami Moy o
Ropaf ad zai Maj aj a P atrick Mwashita
Director : I nf ormation
B oard Secretary Director : F inance, Administration
Communication Tech nology
& I nf rastructure
John Chakasikwa T apiwa Many ika

D enias Kag and e
Executive Assistant to th e Ch ief Loss Control M anager
Principal Procurement M anager
Commissioner General
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2018 Objectives Evaluation
The main strategic achievements in 2018 are summarised in Tables 1 to 6.
Table 1: Revenue Generation

Objective by 31 December 2018 Result Comment
Achieve a revenue collection of 21.80% Collections to GDP were readjusted in line with the
29% of the GDP in 2018. subsequent changes to the rebased economy.
Collect 20% of the 2017 12.4% Collected $490 748 937 from the outstanding debt
outstanding debt of $3 956 353 039. A Tax Amnesty waiving interest
and penalties for non-compliance and late payments
of tax arising prior to December 31, 2017, raised
$123 317 924.53. Some private sector companies
closed down without liquidating their debts.
Register 18,616 new clients 19,497 The strategy to penetrate the informal sector
resulted in 19,497 new taxpayers registered against
a target of 18,616 and $ 25,923,023.12 was
collected from new registrants.
Table 2: Trade Facilitation

Implement 80% of the trade 85.7% To decongest the ports of entry/exit and reduce
facilitation benchmarks turnaround times, 6 of the planned 7 benchmarks
were implemented.
Table 3: Supportive Legislation and Advice

Achieve 70% adoption of proposed 60,6% Legislative change proposals adopted by the
legislative changes by 31 December Ministry of Finance and Economic Development
2018 were 20 out of 33 submitted.
Table 4: Operational Efficiency

Improve employee satisfaction 64% Employees were engaged through NECs and
index from 53.5% to 80% Regional Works Councils to monitor implementation
of Employee Satisfaction Survey outcomes.
Implement 100% of 2017 72.4% To improve employee satisfaction, 21 of the
outstanding NEC issues 29 NEC issues referred by the Regional Works
Councils were resolved.
Increase automated business 83.4% Automation of the identified manual processes
processes from 77% to 95% has come with upgrading of technology used by
the various business solutions to adhere to current
digitalisation trends.
Increase client satisfaction index 67% The customer satisfaction index for ZIMRA
from 65.8 % to 80% surpassed the National Customer Satisfaction of
63.7% according to the NCSI for 2018.
Attain ISO 9001:2008 certification 100% Certification on ZWS ISO 9001:2008 Quality
Management System Standard was attained
in August 2018 after satisfying SAZ’s minimum
certification requirements. The Authority is now
transitioning to ZWS ISO 9001:2015 Quality
Management System standard.
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2018 ANNUAL REPORT

Reduce cost of collection from 2.49% The cost of collection was based on operational
2.96% to 2.5% costs $133.53 million excluding $21.49 million
depreciation a non-cash item to gross collection
$5.363 billion,
Table 5: Good Governance
Ensure 100% adherence to good 85%. Evaluation was conducted as at 30 September

Corporate Governance principles 2018 using a compliance assessment questionnaire
from the Office of the President and Cabinet
Corporate Governance Unit. A corporate
governance assessment could not be conducted as
at 31 December 2018 after the Board’s term was
terminated in October 2018.
100% implementation of agreed 61.14%
A Security Incident and Event Management
internal and external audit
(SIEM) system tracked 1104 issues from forensic
recommendations
investigation, 2017 management letter, ICT Health
Check and internal audit reports. However, 38.86%
were in progress as at 31 December 2018.
Reduce corruption perception index 3.51
Members of Staff were subjected to vetting and
from 3.54 to 3
lifestyle audits in accordance with the Lifestyle
Audit Policy.
Reduce corruption from 1.66 % to 0.81% A total of 147 lifestyle audit cases were finalised
0% based on DGCs cases and 55 cases had adverse findings. Corrective
action taken included 101 DGCs resulting in 40
Suspensions/Dismissals.
Table 6: Sufficient Resources

Generate additional financial 4.57% Expenditure of $133. 53 million was incurred
resources from 5.78% to 8% of the against a grant of $123. 93 million. Additional
approved recurrent budget to fund financial resources of $5,668,477 was raised
operations from interest and agency collection fees.
Mobilise US$9 million to fund 50.86% $4, 577, 493.85 was raised from clearance fees
CAPEX intended for capital expenditure.
Fill up 100% of vacant posts 91.7% The total number of staff in post was 2 727
against an approved staff establishment of 2 973.
Improve rate of implementation of 95.6% A total of 124 course sessions were attended
training courses from 70% to 90% by 2 606 participants [1 156 Females & 1 450
Males].
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2018 ANNUAL REPORT

1. Revenue Mobilisation
1.1 Economic Overview
The business-operating environment was characterised by acute cash and foreign currency shortages. The
impact on business operations resulted in subdued production levels and this prompted some of the retail
industry players to unscrupulously add high price mark-up rates on electronic payments.
Due to the unavailability of cash in the economy, the retail and wholesale sectors resorted to a three tier
pricing system namely bond notes, United States Dollar and the electronic mobile money transfer and card
transactions. Under such an environment, cases of undercover sales returns is eradicated due to the fact that
every transaction is traceable and hence easily accounted for. ZIMRA subsequently realized more Value Added
Tax (VAT) from the retail sector as a result of the widespread cash shortages.
Shortage of foreign currency, the need to protect local industry and grow the local economy prompted the
imposition of import restrictions through promulgation of Statutory Instrument (SI) 122 of 2017. However;
SI 237A of 2018 then amended SI 122 of 2017 to place some items on Open General Import Licence (OGIL)
to mitigate on shortages of specified goods in the economy. This was expected to result in an increase in
availability of basic commodities, which would ease the pressure on prices.
The total revenue forgone in the year amounted to $4.2 billion consisting largely of VAT zero-rated of $2,3
billion, VAT exemptions of $1.1 billion, VAT on imports of $196.9 million, rebates and suspensions of duty
$571.9 million. Our legislation culminates in a myriad of concessions which resulted in the reported forgone
revenue.
The positive performance was anchored on the revision of the Intermediated Money Transfer Tax (IMTT),
general price increases experienced from the third quarter and improved revenue generation through increased
voluntary compliance and enhancing of the Revenue Authority’s operational systems.
1.2 Revenue Performance
Gross Revenue collections were US$5.36 billion (21.80% of GDP) surpassing a target of US$4.30 billion by
24.73%. Net collections amounted to US$5.06 billion after deducting refunds of US$300 916 440.
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2018 ANNUAL REPORT

Table 7: 2018 Collections vs Target
2 0 1 8 Annual Collec tions v s Targ ets

TAX H E AD 2 0 1 8 MOF TAR G E T $ 2 0 1 8 ACTUAL $ VAR I AN CE % VAR I AN CE 2 0 1 7 ACTUAL $ G R OW TH
I ndiv iduals 8 5 0 ,0 0 0 ,0 0 0 8 6 7 , 38 2, 25 3 17 , 38 2, 25 3 2.0 4 % 6 9 9 , 4 4 3, 10 6 24 .0 1%
Com p anies 4 9 0 ,0 0 0 ,0 0 0 8 4 6 , 7 0 6 , 6 0 2 35 6 , 7 0 6 , 6 0 2 7 2.8 0 % 5 0 1, 9 27 , 0 6 7 6 8 .6 9 %
G ross VAT L / Sales 9 5 9 ,0 0 0 ,0 0 0 1, 17 8 , 39 0 , 322 219 , 39 0 , 322 22.8 8 % 9 20 , 7 9 3, 9 28 27 .9 8 %
L ess V AT Refunds 297,141,873 226,327,540 31.29 %
N et VAT L / Sales 9 5 9 ,0 0 0 ,0 0 0 8 8 1, 24 8 , 4 4 9 - 7 7 , 7 5 1, 5 5 1 - 8 .11% 6 9 4 , 4 6 6 , 38 8 26 .9 0 %
VAT on I m p orts 4 0 1, 0 0 0 ,0 0 0 5 21, 5 0 2, 4 4 2 120 , 5 0 2, 4 4 2 30 .0 5 % 39 9 , 9 20 , 9 6 2 30 .4 0 %
G ross Custom s D uty 35 8 , 8 8 0 ,0 0 0 4 5 2, 5 20 , 4 4 0 9 3, 6 4 0 , 4 4 0 26 .0 9 % 320 , 0 5 3, 36 4 4 1.39 %
L ess Customs Refunds 3,216,785 339,278 8 4 8 .13%
N et Custom s D uty 35 8 , 8 8 0 ,0 0 0 4 4 9 , 30 3, 6 5 5 9 0 , 4 23, 6 5 5 25 .20 % 319 , 7 14 , 0 8 6 4 0 .5 3%
E x c ise D uty 8 15 , 30 8 ,0 0 0 8 4 3, 9 6 9 , 0 0 6 28 , 6 6 1, 0 0 6 3.5 2% 7 0 7 , 8 6 7 , 38 7 19 .23%
Mining R oy alties 9 0 ,0 0 0 ,0 0 0 9 5 , 6 6 9 , 29 3 5 , 6 6 9 , 29 3 6 .30 % 7 1, 8 0 1, 227 33.24 %
W H T on Contrac ts 14 1, 7 25 ,5 0 8 16 0 , 6 0 7 , 0 4 5 18 , 8 8 1, 5 37 13.32% 121, 35 0 , 5 7 0 32.35 %
I nterm ediate Money

18 6 , 7 35 , 0 5 5 18 , 6 9 3, 0 7 0 8 9 8 .9 5 %
Transf er Tax
D F IR 6 9 ,0 0 0 ,0 0 0 8 1, 20 8 , 4 22 12, 20 8 , 4 22 17 .6 9 % 6 1, 322, 5 5 2 32.4 3%
Carb on Tax 35 , 9 4 0 , 0 0 0 4 1, 7 14 , 25 1 5 , 7 7 4 , 25 1 16 .0 7 % 32, 0 5 2, 9 8 8 30 .14 %
Oth er Tax es 8 9 , 14 6 , 4 9 2 7 3, 29 6 , 4 11 - 15 , 8 5 0 , 0 8 1 - 17 .7 8 % 6 4 , 7 35 , 27 0 13.22%
G ross N on Tax 13, 6 6 5 , 330 13, 6 6 5 , 330 21, 0 7 3, 6 5 0 - 35 .15 %
Less Other Refunds 557,781 557,781 1,609,145 - 6 5 .34 %
N et N on- Tax 13, 10 7 , 5 4 9 13, 10 7 , 5 4 9 19 , 4 6 4 , 5 0 5 - 32.6 6 %
Total N et R ev enue 4 ,3 0 0 ,0 0 0 ,0 0 0 5 ,0 6 2 ,4 5 0 ,4 3 3 7 6 2 ,4 5 0 ,4 3 3 1 7 .7 3 % 3 ,7 1 2 ,7 5 9 ,1 7 8 36 .35 %
Total G ross R ev enue 4 ,3 0 0 ,0 0 0 ,0 0 0 5 ,3 6 3 ,3 6 6 ,8 7 2 1 ,0 6 3 ,3 6 6 ,8 7 2 2 4 .7 3 % 3 ,9 4 1 ,0 3 5 ,1 4 1 36 .0 9 %
Companies Tax, VAT on Imports, Customs duty and VAT on Local Sales performed well above their targets.
Intermediate Money Transfer Tax enhanced revenue collections with a total of US$186.74 million. A total
of US$11.12 million was collected from IMTT before the revision in the first 9 months of 2018 whereas
US$175.62 million was collected after the revision for the last quarter of 2018. VAT refunds amounting to
US$297.14 million were attributed to a backlog of VAT refunds that were paid.
Figure 1 below shows a comparison of performance for 2017 and 2018.
Figure 1: 2017/2018 Revenue Comparison
Quarterly Performance for 2017, 2018 Actuals and Quarterly Targets for 2018
A comparison in Figure 4 shows quarterly performance during the year as well as the annual performance
against set targets.
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2018 ANNUAL REPORT

Figure 2: 2017 & 2018 Actual Collections and 2018 Target
It is important to note that the positive revenue collections maintained the same trend over the four quarters
of 2018.
Monthly Actual Collections and Variances for 2017 and 2018
Figure 3 below represents monthly revenue performance and month on month growth from 2017 to 2018.
Figure 3: 2017 & 2018 Monthly Actual collections
Revenue performance for 2018 was above the 2017 performance on all the months, and the effect of QPDs
can be noted in March 10%, June 25%, September 30% and December 35%.
ANALYSIS OF THE SPECIFIC REVENUE HEADS’ PERFORMANCE
2017 and 2018 Annual Net Revenue Collections Comparison
The following bar graph shows a comparison of revenue collections for 2017 and 2018 and the 2018 revenue
target per revenue head.
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2018 ANNUAL REPORT

Figure 4: 2017 & 2018 Actual Collections and 2018 Target
*(IMTT – Intermediate Monetary Transfer Tax, DFIR – Dividends, Fees, Interest and Remittances)
Annual growth rates by Tax Head
Figure 5: Annual Growth Rates by Tax Head
Most of the revenue heads registered growth in collections with Intermediate Money Transfer Tax reviewed
in October 2018 growing by 898.95% from US$18.69 million collected in 2017. The spike in the graph
indicates the impact of the policy change on the IMTT rate. A negative growth was only recorded on Non-tax
revenue when comparing collections during the same period in 2017.
Performance of each tax head is as below;
Individual Tax
Annual revenue collections of US$867.38 million from Individual Tax were 2.04% above the targeted
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2018 ANNUAL REPORT

US$850.00 million. Revenue collections grew by 24.01% from the US$699.44 million that was realised in
2017. The Revenue head accounting for 17.13% of total revenue collections was the second highest contributor.
The positive performance recorded was due to salary adjustments and performance rewards awarded prior to
the end of the year and voluntary compliance initiatives implemented on this tax head.
Corporate Income Tax (Company Tax)
Revenue collections from Company Tax amounted to US$846.71 million against a target of US$490.00 million
to give a positive variance of 72.80%. Revenue collections in 2018 increased by 68.69% from the US$501.93
million collected in 2017. Its revenue share increased to 16.73% from 13.52% attained in 2017.
The positive performance can be attributed to improved profitability by some companies during the year and
the use of electronic transactions remained a leverage to providing traceable transactions for audit purposes.
However, Corporate Income Tax debt increased by 40.32% from US$1.33 billion in January 2018 to US$1.87
billion at the end of 2018.
VAT on Local Sales
Gross collections for VAT on Local Sales amounted to US$1.18 billion against a target of US$959.00 million,
resulting in a positive variance of 22.88%. Gross collections grew by 27.98% from US$920.79 million realized
in 2017. Net collections were US$881.25 million missing the target by 8.11% after deducting refunds amounting
to US$297.14 million. Despite missing the target, net collections grew by 26.90% from US$694.47 million
collected in 2017.
The gross performance of the revenue head was enhanced by the hyped consumer patterns and surge in prices
experienced during the fourth quarter of 2018. Net collections performed below expectation due to refunds
paid out during the year. The refund bill grew by 31.29% from US$226.33 million in 2017 to US$297.14
million in 2018. Debt under this revenue head increased by 14.40% from US$1.35 billion in January closing
the year at US$1.54 billion.
VAT on Imports
Collections for 2018 amounted to US$521.50 million against a target of US$401.00 million, resulting in a
positive variance of 30.05%. In comparison to 2017, revenue collections grew by 30.40% from US$399.92
million.
The positive performance of the revenue head is attributed to high demand for imports following relaxation of
import controls by the Government in order to supplement deficiencies in supply of locally produced goods.
Customs Duty
Gross revenue collections for 2018 were US$452.52 million while net amounted to US$449.30 million against
a target of US$358.88 million, resulting in a positive variance of 25.20%. Revenue growth of 40.53% was
recorded from US$319.71 million collected in 2017.
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2018 ANNUAL REPORT

The performance of imports continued to increase in response to demand for essential goods that were not
available on the local market. Enhanced performance of the ASYCUDA World system also improved efficiency
thereby expediting the imports clearing processes.
Excise Duty
Excise Duty revenue collections were US$843.97 million against a target of US$815.31 million resulting in
a positive variance of 3.52%. Excise Duty revenue grew by 19.23% from US$707.87 million collected in
2017. The main contributors were Fuel, Air Time and Beer, each contributing 70.88%, 13.65% and 9.80%,
respectively. Excise duty on fuel was the highest contributor to this tax head in 2018.
Performance of the revenue head is attributed to increased supply and demand of petroleum products. The
demand for petrol and diesel was heightened by transporters transiting through Zimbabwe who preferred to
re-fuel in Zimbabwe due to its flexible exchange rate of Real Time Gross Settlements. Petrol imports increased
by 39.92% from 407.49 million litres in 2017 to 570.17 million litres in 2018 whilst diesel imports increased
by 26.84% from 834.40 million litres in 2017 to 1.06 billion litres in 2018.
Mining Royalties
The revenue head contributed US$95.67 million against a target of US$90.00 million, translating to a positive
variance of 6.30%. Revenue collections grew by 33.24% from the US$71.80 million collected in 2017.
The performance of the revenue head was influenced by the movement of international commodity prices.
Mineral prices surged during the first and fourth quarter of 2018, thereby enhancing revenue collections.
Major minerals like gold, platinum and diamonds production levels improved significantly owing to the
formalisation of small-scale miners.
Withholding Tax on Contracts
Collections amounted to US$160.61 million against a target of US$141.73 million resulting in a positive
variance of 13.32%. Revenue growth of 32.20% was recorded from US$121.35 collected in 2017. The positive
performance of this revenue head is attributed to efforts by ZIMRA to ensure the withholding and remittance
of revenue from traders who operate without valid tax clearance certificates.
Intermediate Money Transfer Tax
Cumulative collections for 2018 amounted to US$186.74 million, of which US$11.12 million was collected at
the then rate of US$0.05 per transaction during the first 9 months. Revenue collections grew by 898.95%
from US$18.69 million collected in 2017. An amount of US$168.04 million was realised due to the review
of Banking Levy of $0.05 per transaction to Intermediated Money Transfer Tax of $0.02 per every $1.00
transacted.
Dividends, Fees, Interest and Remittances
Collections amounted to US$81.21 million against a target of US$69.00 million, translating to a positive
variance of 17.69%. The 2018 collections grew by 32.43% as compared to 2017 collections of US$61.32
million.
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2018 ANNUAL REPORT

Improved performance of the revenue head is attributable to improved profitability by some companies that
paid dividends and imported services.
Carbon Tax
A total of US$41.71 million was realised from Carbon Tax during the year. This translates to 16.07% above
the target of US$35.94 million. In comparison with 2017 collections of US$32.05 million, revenue collection
improved by 30.14% owing to increased consumption of petrol and diesel.
Other Taxes
This revenue head consists of Capital Gains Tax and Capital Gains Withholding Tax, Tobacco Levy and Other
Indirect Taxes (Stamp Duty, Presumptive Tax and ATM Levy).
Revenue collections were US$73.30 million against a target of US$89.15 million giving a negative variance
of 17.78%. In 2018, collections grew by 13.22% from the 2017 collections of US$64.74 million. Capital
Gains (Tax and Withholding Tax) and Tobacco Levy were the major contributors with a 65.01% revenue
contribution to Other Taxes.
The performance of the revenue head is attributed to increased gains from the 2017/2018 tobacco season,
which produced high volumes and returns from local sales. Low compliance under Presumptive Tax and Stamp
Duties negatively affected the revenue collections.
1.3 Growing Tax Base
The tax collection base was expanded through review of the Intermediated Money Transfer Tax to incorporate
electronic mobile payments and RTGS transactions. To broaden the tax base, the Authority registered 19,497
new tax payers against a target of 18,616.
The informalisation of the economy and huge increase in electronic, mobile phone based and RTGS financial
transactions necessitated the review of Banking Levy of $0.05 per transaction to Intermediated Money Transfer
Tax of $0.02 per every $1.00 transacted. The IMTT was reviewed to expand the tax collection base and ensure
that the tax collection points are aligned with electronic mobile payment transactions and RTGS system.
Growth of the tax base accounted for 4.73% increase in revenue collections.
1.4 Tax Management
1.4.1. Tax Reforms
ZIMRA embraced the need for Tax Reforms which are necessary for attaining Zimbabwe’s vision 2030.
This requires a shift from enforcement tactics to a strategy for sustainable voluntary compliance that
builds on effective taxpayer education with targeted facilitation activities.
The following simplified tax system shown in Figure 6 is aimed at increasing domestic resource
mobilisation and enhancing voluntary compliance by implementing measures to widen the tax base
and fight corruption.
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2018 ANNUAL REPORT

Figure 6: A Reform Strategy and a Strategic Management Framework
The reforms strategies also include sector based taxpayer education programmes, business process re-engineering
and strategically investing in a new robust Tax Revenue Management system.
These reforms enable effective core tax administration functions resulting in more taxpayers meeting their
filing and payment obligations voluntarily.
Team Zimra...... Zimra Officers during Tax Educational Campaigns aimed at boosting voluntary compliance.
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2018 ANNUAL REPORT

Debt Management
The Tables below show the movement of debt during the year.
Table 8: Debt Position as at 31 December 2018

Category 2017 2018
Opening debt $2 821 159 592 $3 956 353 039
New Debt $1 514 296 613 $1 572 971 737
Recoveries $379 103 166 $490 748 937
Closing debt $3 956 353 039 $5 038 575 840
Table 9: Debt by Category

CATEGORY AMOUNT AS AT 31.12.2017 AMOUNT AS AT 31.12.2018
Parastatals 490 780 504.19 819 859 786
Councils 232 281 337.50 274 438 526
Private Sector 3 137 760 073.29 3 830 162 627
Importers 77 460 507 114 114 901
TOTAL 3 956 353 039 5 038 575 840
An audit of Local Authorities, Parastatals and Private Sector raised debt which they failed to honour.
Table 10: Debt by Tax Head – Principal, Interest and Penalty

TAXHEAD Principal Interest Penalty TOTAL
VAT 1 040 515 657 204 365 276 298 283 646 1 543 164 579
PAYE 568 557 102 290 142 947 169 604 344 1 028 304 392
INCOME TAX 945 530 361 549 294 399 375 972 731 1 870 797 491
WHT/CGT/PTAX/ 308 515 294 69 905 257 103 773 926 482 194 477
OTHER
CUSTOMS DUTY 114 114 901 114 114 901
2 977 233 314 1 113 707 878 947 634 647 5 038 575 840
TOTAL
Table 10 shows that the principal constitutes 59% of the debt while penalty and interest account for 41%. As a
result of Voluntary Compliance a total of $260,950.48 penalty was reversed while a total of $9,863,566.60
interest was reversed due to Amnesty.
Table 11: Debtors Ageing Analysis by Year.

Debt Period 2015 & Prior 2016 2017 2018 Cumulative Debt
Total Debt per
1 392 456 823 831 752 465 1 169 233 251 1 645 133 301 5 038 575 840
Period
% Contribution 28% 17% 23% 33% 100%
The following debt management strategies were adopted;

• Intensified risk based tax audits and investigations;
• Negotiation, close monitoring and review of payment plans for arrears;
• Application of the penalty loading model to review penalty and interest of debt;
• Visits to debtors, demand letters to defaulters, debt set-offs through the government and VAT refunds;
• Inspections on bonded warehouses;
• Call up agents’ bonds and sureties on outstanding private and commercial assessments, deferred value
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2018 ANNUAL REPORT

added tax, ATIPs, special warrants and suspense entries (RIBs and RITs);
• Securing revenue through rummage sales;
• Tax amnesty;
• Debt management function was formed as a distinct unit in the organisational structure to clarify
accountability.
• Voluntary compliance programme
The Authority introduced a Tax Amnesty waiving interest and penalties for non-compliance and late payments
of tax arising prior to December 31, 2017, raising $123 317 924.53. The taxpayers who met the requirements
of the tax amnesty were granted the waiver during 2018 and 4 897 tax payers with a principal debt of $778
336 967 had applied with 3 579 having been approved.
There is a vibrant dispute resolution mechanism and a system for clarification of legislation in place. Objections
and Applications for Advance Tax Rulings (ATRS) status were as below;
Table 12: Objections and ATRS as At 31 December 2018.

OPENING BALANCE RECEIVED FINALISED CARRIED FORWARD
Objections 4 53 48 9
ATR 2 16 15 3
Total 6 69 63 12
1.5 Plugging Revenue Leakages
The Authority introduced tax payer master data clean-up, whistle blowing, hotline, post clearance audits, border
patrols and electronic cargo tracking to plug revenue leakages. Statutory inspections on state warehouses,
bonded warehouses, private siding and IPR bonded warehouses were also actively pursued.
Investigations on 36 hotline cases and 84 intelligence cases resulted in the recovery of revenue amounting to
$31,368,258.04.
ntensified enforcement measures...... ei ed goods at eitbridge order ost
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2018 ANNUAL REPORT

1.6 Compliance Monitoring
The use of risk-based compliance strategies, as well as modern tax data analytics approaches, including
data matching or use of third party data will bring non-compliant taxpayers into the net.
Table 13: Returns Submission
On time
Returns Submitted
Registered Contract Number of Return
TAX Head on time during
Accounts Expected Returns submission
the year
Rate
Income Tax 140,241 127,250 32,984 7%
VAT 31,406 375,436 61,070 16%
PAYE 121,048 1,452,576 221,378 15%
Grand Total 292,695 1,955,262 315,432 16%
Electronic Cargo Tracking System curbed smuggling and transit fraud as per the table below showing the major
highlights for Reaction Team / Enforcement Activities.
Table 14: Collections from ECTS
Activity Amount Collected

Sealing fees $1,057 075.76
Geo-fence and seal tampering fines $277 720.00
Reaction team activities $142 714.14
Total Collections $1 477 509.90
The cost of ECTS enforcement was $176 864 that raised $1 477 509.90 above.
 A total of 31 071 transit trucks were sealed compared with 13 906 from the previous year resulting in a
remarkable 123% increase in sealing.
 ECTS Supplier is due to roll out an upgrade which will see the system giving alerts/alarms for trucks which
would have lost GPS and those which would have been stationary for a long time. The supplier will also
remove the 83% cap for a seal to be armed at 91% battery level.
Table 15: ECTS Highlights for 2018.
Activity 2017 2018 % Increase

Transit Trucks sealed 13 906 31 071 123%
Routes on ECTS Platform 23 27 17.4%
Geo-fence Violations 96 188 95.8%
Penalties on Geo-Fence violations $196, 000.00 $378,000.00 92.85%
Fuel Excise Duty Collected $490 033 160 $539 667 639 10%
The increased excise duty on fuel in 2018 is partly attributed to increased E-sealing activities which meant that
fuel which used to be smuggled as fuel in transit was now duty paying.
Four new routes were created on the ECTS platform to bring the national coverage on proposed Geo-fence
routes to 51.9% as at the end of the year.
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2018 ANNUAL REPORT

2. Trade Facilitation
ZIMRA continued to fulfil its trade facilitation mandate by coordinating and chairing the periodic stakeholder
meetings, and also led the national teams in bilateral stakeholder engagements held at ports of entry/exit.
In a bid to decongest the border posts, selected cargo targeted for physical examination or inspection was
moved inland for examination or inspection. Implementation of the Authorised Economic Operators concept
improved as selected compliant importers increased from 6 to 9.
An operation to restore order was undertaken to ensure sanity at border posts. The Zimbabwe Defence Forces
(ZDF) assisted in the removal of undesirable elements; touts, beggars and unauthorised persons from major
ports of entry.
2.1 Border Efficiency Management
The successful upgrade of ASYCUDA World from version 4.20 to 4.3.2 with the assistance of experts from
United Nations Conference on Trade Development (UNCTAD) has stabilized the system and increased uptime
to an average of 99%.
Harmonised System (HS) 2017 Tariff was successfully uploaded onto the ASYCUDA World system for effective
and up to date charging of correct rates of duty and tariff classification.
E-TIP mobile application usage was promoted during the festive season of the year to improve clearance
process for tourists and private foreign registered vehicles temporarily entering the country. Use of E-seals to
improve duty security on transiting goods was extended from containers to break bulk cargo.
The following measures were undertaken to increase enforcement of compliance activities to safeguard revenue
and improve controls during the year 2018: -
• The customs clearance system was upgraded with numerous new features and systems enhancements
implemented to improve efficiency;
• E-seals (ECTS) were procured for use on break bulk cargo;
• The use of Personal Digital Assistants (PDAs) gadgets on ECTS has improved the turnaround time of
disarming seals, the efficiency of the sealing process and countering network challenges;
• The continued use of baggage and mobile scanners helped in reducing smuggling especially of prohibited
substances;
• Post clearance verifications and audits.
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2018 ANNUAL REPORT

2.2.3. Beitbridge Re-Development
Beitbridge, the busiest port and gateway to land locked Southern Africa is under redevelopment.
Zimborders Consortium was selected as the contractor and project designs are being finalised before
construction work begins. Implementation of Virtual One Stop Border Post (OSBP) is at an advanced
stage.
P roposed B eitbrid g e P asseng er T erminal
P roposed B eitbrid g e B us T erminal
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2018 ANNUAL REPORT

3. Supportive Legislation
The Authority`s focus on supportive legislation aimed to strengthen its legislative, governance, litigation and
advisory service with a view to improving operational efficiency. This was against the background of increased
non-compliance with revenue laws and the year was characterised by an increase in litigation cases against
the Authority. Advisory and Legal Drafting services were also provided to stakeholders, internal and external
clients.
Widespread consultations on legal issues affecting the Authority included the following key legislative bodies:
• The Law Society of Zimbabwe;

• The Deputy Attorney General responsible for Legal Drafting;
• Office of the Chief Magistrate;
• Prosecutor General’s Office;
• Law Society of Zimbabwe;
• The Law Reviser;
• National Prosecuting Authority.
Researches on proposed major changes were conducted on:
• Taxation on trade in Crypto Currencies benchmarked against other jurisdictions.

• Segmentation of clients and guidelines for implementation of SI 246 of 2018 (Taxation of wealth).
• Taxation of online transactions services under section 36C of the Income Tax Act.
A total of thirty three (33) legislative change proposals were submitted to the Ministry in fulfillment of the
Authority`s mandate to advise government on fiscal and economic matters. The Ministry adopted 20 of these
which translates to an adoption ratio of 60%.
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2018 ANNUAL REPORT

The Authority achieved a 94.8% success rate in litigation cases that were concluded and the overall performance
is summarized below:
Table 16: summary of litigation cases
2018 STATISTICS OF LEGAL WORK HANDLED DURING THE YEAR

ITEM NUMBER
Cases pending at the beginning of the year 260
Cases dealt with during the year (Revenue 261 and Labour 89) 398
- Disciplinary cases 137
- Revenue cases 261
- Other cases 46
New cases 138
Cases decided in ZIMRA’s favour – Final 42
Cases outsourced to external lawyers 40
Cases withdrawn 23
Cases finalised 80
Cases pending at the end of the year 318
Agreements drafted/reviewed 276
Statutory Instruments and General Notices drafted/reviewed 80
Legal opinions dealt with 36
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2018 ANNUAL REPORT

4. Operational Efficiency
4.1 Technological Innovation
The ASYCUDA World Functional upgrade Phase 2, which involves implementation of new features and
functionality, commenced in 2018 and is expected to be completed by end of December 2019.
Computer Assisted Auditing Techniques (CAATs) were introduced to improve proficiency of the Internal Audit
through the following:
• IDEA Data Analytics Software was installed on machines for Internal Audit, Domestic Taxes and RASP
and training was done;
• Forensic Tool Kit - Contract was

regularised;
• TEAMMATE - System upgrade was done

successfully on the server and auditors’
machines and refresher training was
done.
• Digital Forensics was implemented to

enable investigations by Internal Audit,
Loss Control and RASP.
Development of alternative and simplified

e-filing system for Pre-filing, notification of nil tax
declarations and Mobile declarations for small
taxpayers commenced. The automation of the
identified manual processes has increased from
77% to 83.38% for the period under review.
This has come with upgrading of technology
used by the various business solutions to adhere
to current digitalisation trends.
4.2 Human Capital
As at 31 December 2018, the total number of staff in post was 2,727 against an approved staff establishment
of 2,973, which translates to 91.7% in relative terms. In addition to the staff in post were interns (59), Field
Assistants (78) and secondments (35). Of the Field Assistants 50 were in Domestic Taxes and 28 in Customs &
Excise (performing sealing duties).
Staff attrition was with respect to 5 deaths, 45 resignations and 7 retirements.

A total of 24 Human Capital policies which included new and reviewed policies (where review was necessary)
were drafted.
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2018 ANNUAL REPORT

A Job fit exercise was done by an external consultant and placement awaits approval of the restructured
organogram. Skills alignment and capacity building efforts done are expected to improve operational efficiency.
A total of 124 course sessions were attended by 2,606 participants [1,156 Females & 1,450 Males].Technical
assistance for capacity building was received on following areas:
• Data matching
• WTO Valuation
• Drugs and Minerals
• Risk Management and PCA
• CRM, FDS,CGT
• TADAT training facilitated by IMF experts
• Transfer pricing course which was facilitated by ATAF in conjunction with the OECD
• Extractive Industries Course, Farming
• International Standard Industrial Classification (ISIC) workshop.
• Base Erosion and Profit Shifting (BEPS).
• Public Financial Management Legal Frameworks
• Results Scorecard Training
Course Evaluation of Training sessions done in 2018 was at 95% while professionalism and knowledge exhibited
by trainers was rated at 98%. In addition, library facilities were available to assist readers, researchers and staff
undertaking professional study programmes.
Performance was rewarded based on individual performance awards granted in terms of the Performance
Award Policy. The following measures were implemented as part of staff motivation enhancement:
• Motor vehicle loan scheme for Supervisors. As at 31 December 2018, 123 of the targeted employees
had benefited from the scheme.
• Mortgage facilities - 137 out of 213 managers in service and 214 non-managerial staff benefited.
• General Loans Policy - loan repayment period for personal and school fees loans increased.
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2018 ANNUAL REPORT

4.2.1. Safety and Health
N umero uno. . . . . . . T he Commissioner G eneral is read y to hand over med als to winning teams at the Z imra S af ety and Health G ala.
• Employees participated at 2018 Inter-Revenue Games and Safety and Health Gala.
• Effective practical HIV and reproductive health interventions were adopted such as information
dissemination, counselling and voluntary HIV Testing.
• Engaged facilitators from Zimbabwe National Network of People living with HIV (ZNPP+) who
provided six sessions of testimonials of living with the HIV virus. A total of 175 employees participated
over a period of two days.
4.2.2. Employee Engagement
ZIMRA fosters a more engaging and satisfying work environment for its employees, recognising that having
engaged employees who are involved in and committed to their work is critical to the success of the organisation
and the quality of programs and services delivered to citizens.
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2018 ANNUAL REPORT

Epitome of ervice Excellence...... Commissioner eneral s . a ani gives ita onsaro a to en of appreciation for
exceptional service to clients.
An employee satisfaction survey was carried out to gauge the satisfaction levels and attend to underlying issues
and challenges that exist at the workplace. The Employee Engagement Index was 58, whilst the Employee
Satisfaction Index score was 64.
The Authority engages its employees on conditions of service, raised NEC issues and salary increments through
Collective Bargaining Negotiations (CBN). Employees were engaged across the organisation through Station
Works Councils, Regional Works Councils and National Employment Council to discuss issues that affect staff
in their day to day activities. Twenty-one (21) of the twenty-nine (29) outstanding NEC issues were resolved.
4.3 Change Management
The Authority consolidated its strategies through a five year (2014-2018) journey which was characterised by
improved operational efficiency in all areas of its operations.
This plan which followed the adoption of the Integrated Results Based Management performance management
system in line with government policy underscored our commitment to the provision of fiscal services and
facilitation of trade and travel.
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2018 ANNUAL REPORT

Figure 7: Areas of focus under the 2014-2018 strategy.
The model above highlights the targeted objectives which were reviewed using the Balanced Score Card (BSC).
The review of the 2014-2018 strategy highlighted some areas that still need further attention.
For different results the Authority had to transform Strategy into Action and Action into Results, to take the
organisation from where it is at present to a state it has never been.
And to do this, we must CHANGE!!!, hence our new five year (2019-2023) strategic plan that will focus on
Change Management.
4.3.1 Strategic Planning
The new planning anchored on 4 P’s (People, Processes, Partnerships and Projects) aligned to the government
vision 2030 Transitional Stabilisation Programme, will usher in Business Process Re-engineering.
4.3.2 Modernisation Projects
ZIMRA developed a projects register for all modernisation projects planned for implementation. The Projects
Register was prioritised for implementation in line with PRINCE2 guidelines.
Systems Integration is the cornerstone of ZIMRA modernisation and the following projects were undertaken:
• The ZIMRA - PFMS.
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2018 ANNUAL REPORT

• The ZIMRA - Banks on the file encryption and uploads.
• The SAP - ASYCUDA Interface Phase 1 to upload Payments and Assessments in SAP FI from BizTalk
server completed and Phase 2 to automate ASYCUDA CCC in SAP.
4.3.3. Systems Automation Projects
• Development of the Revenue Assurance and Special Projects (RASP) Case Monitoring project was
completed.
• SAP HCM 2012 Payroll and Leave Days automation commenced during the year.
• Carried out FI-Contract Accounting Configuration for new;
a) Point of Sale Accounts;
b) Foreign Currency Accounts, including US Dollar, Rand and Botswana Pula.
• Microsoft E-Services configured to allow clients to apply for tax clearances before year end system
congestion challenges.
4.4 Strategic Partnerships
The Commissioner General engaged key stakeholders: government, border agencies, clearing agents, licensing
authorities, professional bodies, consultants, banking institutions, development partners, business executives
and players in the tourism sector among other key strategic partners.
The engagements and feedback about the services provided by ZIMRA were intended to meet customers’
needs, expectations and provide the highest level of service possible. It is imperative to understand perceptions
of tax payers and the challenges they encounter in meeting their tax obligations. The customer satisfaction
index for ZIMRA was 67%, while, according to the NCSI for 2018, the national customer satisfaction was
63.7%.
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2018 ANNUAL REPORT

elegates attending t e frican Tax dministration orum T course on Tax Treaties pose for a group p oto.
The following collaborative stakeholder engagements were done:
• Inter-Ministerial Committee meetings covering anti-smuggling and border management.

• Securities and Exchange Commission of Zimbabwe and telecommunications sector to discuss transfer
pricing.
• ZIMRA Managers and Parliament Workshop to discuss legislative issues.
• Rural and urban councils on voluntary and co-operative compliance enhancement.
• IMF on strategic planning, data matching, risk management, debt management, ICT review and tax
revenue management.
• World Bank, Ministry of ICT and Ministry of Finance officials - on technical assistance with mining
valuation and auditing, telecommunications sector audits and how to integrate government ICT
systems and linking them to each other.
• DFID on DRM Review covering Political Economy Analysis.
• WCO on Mercator Project Management program, Digital Customs and RTC Digital Empowerment
Customs & Excise E Commerce.
• ATAF Workshop on Tax Agreements.
• EU Embassy - on the possible areas for cooperation under the Economic Partnership Agreement (EPA)
and trade facilitation arrangements.
• USAID- on VAT diplomatic refunds, funding and capacity building.
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2018 ANNUAL REPORT

• TADAT workshop for ZIMRA officials and over 200 officers and managers were trained and TADAT
Certified by IMF Consultants.
Commissioner eneral s . a ani seated extreme left it T T experts during a T T meeting.
The Tax Administration Diagnostics Assessment Tool (TADAT) Secretariat carried out an assessment on ZIMRA
and action plans were put in place to address the performance gaps noted.
Missions and engagements were hosted to benchmark with best practices for electronic data exchange and
sharing of intelligence on traffic transiting through bordering countries – Zambia, Mozambique, Botswana
and South Africa as verified through rules of origin for the AU Free Trade Area, WCO, SADC, COMESA, and
other bodies.
It is envisaged that once fully operational, the export transactional data from the exporting country would
automatically create the corresponding import clearance in the importing country, thus minimising the
likelihood of false declaration by the importers or exporters involved in the transactions.
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2018 ANNUAL REPORT

T e Commissioner eneral at t e centre poses for a p oto it nternational delegates after fruitful discussions.
ZIMRA negotiated MOUs with Namibia and Angola and signed DTAs with UAE and Mozambique.
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2018 ANNUAL REPORT

5. Good Governance
ZIMRA is committed to upholding the principles of good corporate governance in compliance with national
laws and regulatory guidelines. In this regard, following the promulgation of the Public Entities Corporate
Governance Act [Chapter 10:31] (PECOGO Act) and Regulations, the Authority aligned its governance practices
to the new requirements. A compliance matrix was developed to track and monitor corporate governance
compliance on a quarterly basis.
5.1 Board Constitution and Composition
ZIMRA operated with a ten member Board of Directors until 01 October 2018 when the term of the Board
was terminated. Nine Members of the Board including the Chairman were non-executive. The gender mix
for the previous board was four female members and six male members. Skills set of board members were in
the fields of accounting, business management, governance, law and economics, among other key areas of
specialisation.
Appointment of a new Board of Directors was announced on 20 December 2018, for a three year term, with
effect from 04 January 2019.
5.2 Board Committees
The Board established seven committees to which certain functions were delegated as shown on Figure 8;
The Board however, retained the overall oversight on ZIMRA`s operations.
Figure 8: Board Committees
All Committees were chaired by independent non-executive board members and they operated with written
Terms of References detailing responsibilities of the committees.
The Committees met quarterly and as need arose.
The Chairpersons of the respective Committees reported to the full board on matters considered by the
Committees and recommendations made by the Committees.
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2018 ANNUAL REPORT

38
Members of the Board and their membership to the Board Committees is outlined in the table below;
Table 17: Board and Board Committees` membership
2018 ANNUAL REPORT

Name of Director
Board Appointments Board Committees as Chairperson/Member
Executive Non- Independent Non- Audit Risk HR Technical Finance, Ad-Hoc Committee Ad Hoc Committee
Executive Independent Administration On Fiscalisation & on Implementation of
Director Director Committee & ICT Cargo Tracking System health check
Director Director recommendations
Willia Bonyongwe √ √ - - - - - - -
(Chairman)
Percy Toriro √ √ - - Chair - Member Member Member
(Vice-Chairman)
Sarudzai Njerere √ √ - Chair Member - Member - -
Moffat Nyoni √ √ Member - - Member - -
Nation Madongorere √ √ - Member - Member Chair Chair Chair
Betty Katiyo √ √ Chair Member Member - - Member Member
Nompumelelo Abu-Basutu √ √ Member - - Chair Member - -
Arnold Chidakwa √ √ Member Member - Member - Member Member
Faith Mazani √ √ - Member Member Member Member - Member
Willard Manungo √ √ Member - - Member - - -

Details of the number of Board meetings held during the year and the attendance of each Board member at
those meetings are disclosed in the table below;
Table 18: Board Meetings and Attendance
Board Member Scheduled Board Special Board % attendance per

Meetings Meetings individual board
member
No. Held No. Attended No. Held No. Attended

%
Mrs W. Bonyongwe 3 3 5 5 100
Mr P. Toriro 3 3 5 4 87.5
Mrs N.M. Abu-Basutu 3 3 5 0 42.19
Mrs B.S. Katiyo 3 1 5 3 50
Mr N.C. Madongorere 3 3 5 5 100
Mr M. Nyoni 3 2 5 5 87.50
Ms S. Njerere 3 3 5 3 75
Mr A. M. Chidakwa 3 3 5 5 100
Mr W.L. Manungo 3 3 5 5 100
Ms F Mazani * 3 3 5 4 87.50
% of collective members’ attendance 87.92
Key
- did not attend and an apology was noted. *
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2018 ANNUAL REPORT

40
Details of the number of Board Committee meetings held during the year and attendance of each Board member at those meetings are disclosed in the
table below;
Table 19: Attendance at Board Committee Meetings

Human Risk Audit Finance Technical Ad-Hoc Ad-Hoc Committee Attendance
Resources Administration on implementation per
2018 ANNUAL REPORT

Committee Committee and ICT Committee Committee on of system individual
Committee Fiscalization and health check Board
Cargo tracking recommendations Member
No. No. No. No. No. No. No. No. No. No. No. No. No No
Held Attended Held Attended Held Attended Held Attended Held Attended Held Attended held Attended
%
Mrs W. Bonyongwe 3 1** 3 3** 3 1** 3 1** 3 2** 0 0 1 1** 100%
Mr P. Toriro 3 2- 3 * 3 * 3 3 3 * 0 0 1 1 85.80%
Mrs N.M. Abu-Basutu 3 * 3 * 3 3 3 3 3 3 0 0 1 * 100%
Mrs B.S. Katiyo 3 2- 3 2- 3 2- 3 * 3 * 0 0 1 1 70%
Mr N.C. Madongorere 3 * 3 3 3 * 3 3 3 3 0 0 1 1 100%
Mr M. Nyoni 3 * 3 * 3 3 3 * 3 3 0 0 1 * 100%
Ms S. Njerere 3 3 3 3 3 * 3 3 3 * 0 0 1 * 100%
Mr A. M. Chidakwa 3 * 3 2- 3 2- 3 * 3 2- 0 0 1 0- 60%
Mr W.L. Manungo 3 * 3 * 3 2- 3 * 3 3 0 0 1 * 97.20%
Ms. F. Mazani 3 3 3 3 3 * 3 3 3 3 0 0 1 1 100%
% of collective members’ attendance 91.30%
Key
* not a member.
**not a member but attended the meeting by invitation.
- did not attend and an apology was noted.
Ms F. Mazani was appointed Commissioner General effective 1 February 2018. Mr H. Kuzvinzwa attended the first special board meeting as Acting
Commissioner General. Ms F. Mazani attended the remaining scheduled board meetings and special meetings during the rest of the year.
The Board and Board Committees held a total of 38 meetings during the year. Of the total, 18 were scheduled while 20 special or ad hoc meetings
were convened to discuss urgent substantive matters. Board or Committee meetings were not held during the
last quarter of the year since the previous board was terminated on 1 October 2018 and the new board was
announced on 20 December 2018.
Pending the appointment of the new board, ZIMRA reported to and sought guidance from the Ministry of
Finance and Economic Development on critical issues that would ordinarily require board approval in line
with good corporate governance, disclosure and transparency.
5.3 Board Training and Development
As part of continuous training and development for Board Members, the Board participated and /or
attended various conferences and workshops during the year, among them the following: -
• Awareness workshop for Parastatals on the sensitisation of the new Public Procurement and Disposal
of Public Assets Act [Chapter 22:23] offered by the Office of the President and Cabinet;
• Tax education workshop for Parliamentarians;
• Strategy development with IMF consultant;
• Public Entities Corporate Governance workshop by ZIMLEF.
Members of the Board visited selected stations as part of continued efforts to familiarise and have first-hand
appreciation of key operations of the Authority.
5.4 Corporate Governance Assessment and Board Evaluation
A corporate governance compliance assessment was done using a questionnaire from the Office of the President
and Cabinet Corporate Governance Unit. The compliance status for the Authority as at 30 September 2018
was 85%. However, a corporate governance assessment and board evaluation could not be conducted for
2018 since the board`s term was terminated in October 2018. The Authority is targeting to reach 100%
compliance by 31 December 2019.
The Authority received a second runner up prize under State Enterprises and Parastatals Category for Best
Corporate Governance Disclosures at the 2018 Excellence in Corporate Governance Awards coordinated by
Institute of Chartered Secretaries and Administrators in Zimbabwe.
5.5 Ethical Issues
Board and senior management declared their assets and business interests upon appointment, to the Office of
the President and Cabinet Corporate Governance Unit in fulfilment of the requirements under the PECOGO
Act and Regulations. Interests were also declared at every meeting of the Board or Committees.
Members of Staff were subjected to vetting, lifestyle audits and completed Asset Declarations. Vetting was
carried out on 202 new staff members and 264 lifestyle audit cases were investigated. A total of 147 audit
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2018 ANNUAL REPORT

cases were finalised and 55 cases had adverse findings. The reasons for failing the audits included failure to
account for assets, financial transactions, and refusal to cooperate in accordance with the Lifestyle Audit Policy.
Corrective action taken included 101 Disciplinary and Grievance Cases (DGCs) resulting in 40 Suspensions/
Dismissals.
Meetings with staff members were held at all stations to fight corruption and uphold integrity at all times.
5.6 Social Responsibility
The newly appointed ZIMRA Charity Trust Board held its first meeting and awarded scholarships for tertiary
education to needy students as well as donating groceries and funding for sustainable development projects
to 17 charity institutions.
Old age is olden...... Commissioner eneral s . a ani ands over a green ouse to um ud o Old eople s ome.
5.7 Standards (IPSAS, ISO, Procurement)
5.7.1. Regulatory Framework
The legal framework governing the operations of the Authority consist of the Revenue Authority Act (Chapter
23:11), the Public Entities Corporate Governance Act [Chapter 10:31] (PECOGO Act), and the Public Finance
Management Act [Chapter 22:19] and other applicable pieces of legislation and regulatory directives.
The Authority’s primary role of collecting revenue on behalf of the State is done through a number of statutes
such as the Customs and Excise Act [Chapter 23:02], Value Added Tax [Chapter 23:12], Income Tax Act [Chapter
23:06], Capital Gains Tax Act [Chapter 23:01], Stamp Duties Act [Chapter 23:09], and the Mines and Minerals
Act (Chapter 21:05).
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2018 ANNUAL REPORT

Commissioner eneral s . a ani addressses delegates at a Z or s op meant to institute revenue reforms.
5.7.2. Financial Standards
The Authority complies with International Accounting and Internal Audit Standards as set out in the applicable
laws, governance frameworks and report in line with International Financial Reporting Standards (IFRS).
ZIMRA is ready and committed to the implementation plan that will see government institutions adopting the
global accounting systems; the International Public Sector Accounting Standards (IPSAS) reporting framework.
5.7.3. Procurement
A Procurement Management Unit reporting directly to the Commissioner General was established to be
responsible for managing all the Authority`s procurement activities in accordance with the Public Procurement
and Disposal of Public Assets Act (Chapter 22:23).
5.7.4. ISO Certification
The Authority was ZWS ISO 9001:2008 Quality Management System Standard certified after satisfying
Standards Association of Zimbabwe (SAZ’s) minimum certification requirements. However, the Authority is
transitioning to ZWS ISO 9001:2015 Quality Management System Standard.
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2018 ANNUAL REPORT

5.8 Audit and Risk Management
The control environment within the Authority was monitored by the Board in line with the Internal Audit &
Risk mandate to highlight high risk areas where due management attention was required. The Internal Audit
function is headed by an Internal Audit Executive who reports functionally to the Board Audit Committee and
administratively to the Commissioner General.
The ZIMRA Risk Policy requires enterprise risk to be assessed to ensure business continuity and attainment
of stakeholder interests to create and protect value as per the 2018 ERM plan. The corporate strategic goals
overall risk score was 3.27, in the medium category, as at 31 December 2018.
The enterprise risk is analysed as shown below;
Risk ratings for year 2018 Risk Analysis & Comments

High Risk Areas
Risks which revealed high exposure were:
• Corruption
• Loss of revenue through fraudulent activities
• Projects deviation from budgets
• High uncollectible debt
• Projects deviation from timelines
• Insufficient forex funds to finance or procure
imported goods/services
Medium Risk Areas

The following risks showed medium exposure;
• Scheduled maintenance
• Intrusion in Outlook
• Low staffing levels
• Failure to surpass GDP threshold
Fire Assessment & BCP

• Risk of fire remained high in the Authority as
evidenced by monthly fire assessments submissions
from various stations.
• The Authority had no consolidated BCP in place
and this affected the rating of ZIMRA during the
TADAT assessment.
Figure 9: Enterprise Risk Analysis
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2018 ANNUAL REPORT

High exposure risks noted from the assessment above will continue
to be given priority in order to reduce the impact while medium and
low risks will be monitored to ensure that they are further reduced
to acceptable levels.
ICT Adequacy and Health Check completed Vulnerability Assessment

and Penetration Testing. The network intrusion risk is now low after
the installation of Next Generation Firewalls.
Figure 10: Consolidated Issues Log
A Security Incident and Event Management (SIEM) system was procured to support real time monitoring of
audit logs see Figure 10 for all ZIMRA systems including applications and network devices allowing the Security
Operations Centre (SOC) to make timely interventions.
5.9 Sustainability Reporting
Taxpayers and citizens want to know how public sector organisations and ZIMRA in particular are addressing
sustainability challenges. In promoting transparency, this review seeks to communicate how ZIMRA
sustainability reporting is understood and managed with an emphasis on the three non-financial performance
issues; environmental, economic and social.
5.9.1 Environment
Smuggling of dangerous and hazardous substances, movement of controlled species and transfer of local
wildlife without proper documentation is harmful to the environment. ZIMRA has played a pivotal role to
control all ports of entry and exit in the country through use of scanners, laboratory tests and K9 Units where
officers are trained on how to handle sniffer dogs. Radiation safety officers were trained on how to protect
themselves from radiation and equipped with dosimeters. Radiation Protection Authority of Zimbabwe closely
monitors and tests dosimeters monthly for the level of radiation emission and advises on scanner operators
who are exposed to radiation.
ZIMRA has a Health and Safety policy that ensures every station has a Health and Safety Committee to ensure
the environment is safe. We monitor our working environment to avoid the incident of hazards or to control
its consequence, within the legal framework which governs the promotion of health and safety in Zimbabwe.
5.10.2. Economy
ZIMRA has been instrumental in protecting industry, informal traders and the transacting public through
strategic sharing of data and information with Treasury, industry, other parastatals and stakeholders like
ZIMSTATS.
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2018 ANNUAL REPORT

The Authority implements concessions granted by government through issuance of rebates for companies
operating in national projects on capital goods for the mining, manufacturing, agricultural and energy generation
and distribution companies. This creates employment and generate domestic taxes revenue in these industries,
which entails growth. The companies have potential to export goods manufactured or minerals extracted
bringing in the much needed foreign currency for the government which will assist in the importation of fuel
and other essentials like medicals.
5.9.3. Social
ZIMRA operates a modest social responsibility program to give back to the society through funding several
projects run by charity organisations like childrens` and old people`s homes. School children from disadvantaged
communities have benefited from the annual charity ball.
5.10 Public Disclosure
The 2017 Annual Report and the Audited Financial Statements were tabled at the inaugural Annual General
Meeting (AGM) held on 5 July 2018 to discuss the Authority`s operations and conduct.
D eleg ates to the I naug ural A nnual G eneral Meeting
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2018 ANNUAL REPORT

The following key stakeholders were invited and attended the AGM:
• Representatives from the Ministry of Finance and Economic Development;
• Representatives of the Office of the President and Cabinet (Corporate Governance Unit);
• Representatives from the Auditor General’s Office;
• Representatives from the State Enterprises Restructuring Agency;
• The Accountant General.
The Authority also updated the public through Radio and Television, Website, Facebook, SharePoint, Twitter
and LinkedIn platforms and the ‘Taxman’s Corner’ published in print and electronic media.
Issues addressed ranged from revenue performance, responses to enquiries from the media and clients, public
notices, systems updates, rummage sale notices, adverts, invitation to tender and new requirements introduced
by the new Finance Act.
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2018 ANNUAL REPORT

6. Sufficient Resources
ZIMRA was funded by a grant from the government to the tune of $139,934,645 made up of $123,934,645
for operational costs and $16,000,000 for Capital Expenditure, The total operational expenditure was
$133,529,951 excluding depreciation a non-cash expense of $21.49 million.
While the Authority records were maintained in United States Dollars, some of its operating transactions
were conducted in a ‘multi-tiered’ pricing environment during the year under review, where settlement of
transactions was depended on the mode of payment, whether United States Dollar cash, electronic payment,
mobile money or bond notes. This resulted in a funding gap.
ZIMRA was authorised to generate additional resources to bridge the $9,595,306 million operational
expenditure funding gap. To fund recurrent operations, $5,668,477 (4.57%) was raised from interest and
agency collection fees while $4, 577, 493.85 million was raised from clearance fees intended for capital
expenditure.
6.1 EXPENDITURE ANALYSIS
6.1.1 Recurrent Expenditure
The table below shows an analysis of expenditure versus budget for the year.
Table 14: Expenditure versus budget
Description Budget Expenditure Variance ($) Variance

USD USD USD (%)
Staff Costs 89,389,645 98,181,426 (8,791,781) -10%
Other Recurrent
Expenditure 34,545,000 56,835,049 (22,290,049) -65%
Total Recurrent 123,934,645 155,016,475 (31,081,830)
Expenditure -25%
Capital Expenditure 16,000,000 7,744,201 8,255,799 52%
Grand Total 139,934,645 162,760,676 (22,826,031) -16%
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2018 ANNUAL REPORT

Figure 11: Expenditure drivers
• Staff Costs accounted for 69% of the total recurrent expenditure. The over-run of $8.79 million
(10%) against the budget was due to $6.12 million towards 25% arbitral award for salary review to
employees and labour cases disputes before the courts.
Non-cash items like depreciation and amortisation 5% ($21.49 m), fiscalisation devices ($0.7 m) and
other accruals such as Microsoft (previously accounted for under e-government) accounted for the
25% excess on other recurrent expenditure.
o Travel and Subsistence 4% ($5.64 million) of the total expenditure was largely driven by staff reliefs
(deployed to busy stations), training for revenue trainees and increase in hotel accommodation
costs.
o Subscriptions cost of 3% ($4.17 million), was largely on software licenses.
o Rentals and Hire consumed 3% ($3.86 million). The bulk of this expenditure went to rental of
bandwidth ($2.7 million) to facilitate communication between stations and external stakeholders.
o Motor Vehicle Expenses, Office and Operational Utilities, Security and Repairs and Maintenance
accounted for 2% each.
• The total operational costs of $133.53 million ($155,016.48 million inclusive of $21.49 million depreciation
a non-cash item) to gross collection $5.363 billion, resulted in a cost of collection ratio of 2.49%.
Of the total expenditure, 95% was spend on recurrent while 5% on capital expenditure.
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2018 ANNUAL REPORT

6.1.2 Capital Expenditure
The approved Capital budget was USD16 million and 7,744,201 was spent mostly towards construction works
(USD2.44 million), ICT equipment (USD 3.165 million) and Computers, Software, Furniture, Generators and
Motor vehicles.
Capital expenditure was below budget by $8.3 million (52%) carrying forward balance of USD17.735 million
as works in progress, as shown in Table below. The under-performance was largely due to failure to secure
foreign currency for foreign purchases like, Oracle Supercluster, Motor Vehicles etc. Some projects stalled as
contractors asked for price variations.
Table 20: Capital Expenditure for 2018

Unexpended Expended Unexpended
Balance Total During the Balance
Project Approved B/Forward Available Year C/Forward to
Budget 2018 From 2017 Funds-2018 Ended 31 2019
December
2018
Buildings -
Computer equipment 4,819,223.15 2,234,663 7,053,886.15 3,165,727.39 3,888,158.76
Construction work in 6,814,062.24 4,866,782 11,680,844.24 2,441,889.22 9,238,955.02
progress
Furniture, Fixtures 941,050.99 211,152.06 1,152,203.05 786,175.92 366,027.13
and Fittings
Network equipment 130,776.85 - 130,776.85 130,776.85 -
Software 650,000 934,766 1,584,766.00 375,000.00 1,209,766
Office equipment 48,672.35 - 48,672.35 48,672.35 -
Plant and Machinery 110,276.66 - 110,276.66 110,276.66 -
Generator 100,000 712,456.94 812,456.94 - 812,456.94
Land 585,937.76 - 585,937.76 585,937.76 -
Motor vehicles 1,800,000 447,000 2,247,000.00 27,200.00 2,219,80.00
Total 16,000,000 9,406,820 25,406,820.00 7,671,656.15 17,735,163.85
The expenditure above was provided for in a Procurement Plan that summarised and published the list of
goods, construction works and services as annual plan for procurement during the coming financial year in
compliance with Section 22 of the Public Procurement and Disposal of Public Assets Act [Chapter 22:23].
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2018 ANNUAL REPORT

7. Audited Financial Statements
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2018 ANNUAL REPORT

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2018 ANNUAL REPORT

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2018 ANNUAL REPORT

ZIMBABWE REVENUE AUTHORITY
STATEMENT OF FINANCIAL POSITION
as at December 31, 2018.
31-Dec-18 31-Dec-17
Note USD USD
ASSETS
Non current assets 186 396 797 151 167 777
Property, plant and equipment 4 153 577 317 128 630 699
Intangible assets 5 23 841 056 13 940 279
Biological assets 6 44 938 45 250
Mortgage support investment 7.1 8 933 486 8 551 548
Current assets 73 752 063 55 876 053
Inventory 2 721 215 2 999 497
Accounts receivables 8 4 230 377 3 800 888
Assets held for sale 9 15 200 16 000
Investments 7.1 2 870 938 6 410 658
Cash and cash equivalents 10 63 173 037 42 366 859
Prepayments 741 296 282 152
Total assets 260 148 859 207 043 830

RESERVES AND LIABILITIES
Reserves 163 973 318 119 479 012
Non distributable reserve 90 854 867 90 854 867
Accumulated fund 12 687 408 16 818 007

Revaluation reserves 60 431 044 11 806 138
Deferred income 11 61 281 711 61 516 904

34 893 828 26 047 911
Non current liabilities 327 973 329 133
Finance lease obligation 12 327 973 329 133

Current liabilities 34 565 855 25 718 778
Short term portion of finance lease 12 21 164 20 118
Provisions 13 14 754 544 7 690 792
Payables 15 19 790 147 18 007 867
Total reserves and liabilities 260 148 859 207 043 830
____________________, 2019.
P. MWASHITA,
(Director Fin, Admin & Infrastructure)
CPA, ACMA
____________________, 2019.
F. MAZANI,
(Commissioner General)
____________________, 2019.
C. JOKONYA
(Board Chairperson)
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2018 ANNUAL REPORT

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the year ended December 31, 2018.
Note 31-Dec-18 31-Dec-17

USD USD
Income 151 089 646 132 720 527
148 079 561 131 114 216
Government grant 123 934 645 107 840 406
Amortised capital grant 11 21 486 524 15 130 524
Interest earned 2 282 158 2 641 579
Discount received - 5 049 401
Rental income 376 234 452 306
Other income 14 3 010 084 1 606 311
Less operating expenses (155 016 475) (119 047 766)
Employment cost 16 (98 181 426) (67 958 446)
Administrative costs 17 (56 835 049) (51 089 320)
Operating surplus (3 926 829) 13 672 761
Finance costs ( 203 769) ( 93 499)
Surplus for the year (4 130 598) 13 579 263
Other comprehensive income - -
Revaluation 48 624 906 -
Total comprehensive income for the year 44 494 308 13 579 263
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2018 ANNUAL REPORT

STATEMENT OF CHANGES IN RESERVES
Accumulated Revaluation Non distributable Total

Fund reserve reserve
USD USD USD USD
Balance at January 1, 2017 3 238 744 11 806 938 90 854 867 150 168 357 105 900 549
Loss on disposal - ( 800) - ( 800)
Surplus for the year 13 579 263 - - 13 579 263
Balance at December 31, 2017 16 818 007 11 806 138 90 854 867 150 168 357 119 479 012
Balance at January 1, 2018 16 818 007 11 806 138 90 854 867 119 479 012
Revaluation - 48 624 906 - ( 800) 48 624 906
Surplus for the year (4 130 598) - - (4 130 598)
Balance at December 31, 2018 12 687 408 60 431 044 90 854 867 ( 800) 163 973 319
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2018 ANNUAL REPORT

STATEMENT OF CASH FLOWS
for the year ended December 31 , 2018.
31-Dec-18 31-Dec-17
Note USD USD
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash generated /(utilised) by operating activities 1 756 405 (1 405 284)
Operating loss before working capital changes 583 676 3 944 093
peratin profit for the ear (4 130 598) 13 579 263
Adjustments to reconcile profit to net cash flows: 4 714 275 (9 635 170)
Loss on disposal of biological assets 14 063 3 375
rofit on isposal of assets ( 6 644) 120 000
Depreciation of property, plant and equipment 4 12 878 720 7 883 788
Amortisation of intangible assets 5 8 607 804 7 246 734
Write down of consumables to net realisable value 17 6 557 5 784
Amortised grant 11 (21 486 524) (15 130 524)
Unrealised exchange gain ( 80 456) -
Impairment loss 1 581 -
Increase/Decrease in provisions 7 063 752 (7 434 639)
Allowance for credit loss 6 059 ( 29 271)
Exchange loss 9 805 212 656
Gain on price differences ( 3 768) ( 2 699)
Obsolete stock written off 17 227 101 933
Interest earned (2 320 421) (2 641 579)
Working capital adjustments 1 172 729 (5 349 377)

(Increase)/decrease in accounts receivables ( 429 489) 26 573
(Decrease) in prepayments ( 459 144) ( 23 405)
Assets held for sale 800 -
Decrease/(increase) in consumables 278 282 (1 123 403)
Decrease/(increase) in payables 1 782 280 (4 229 143)
CASH FLOWS FROM INVESTING ACTIVITIES (2 201 557) (3 472 856)

Interest received 2 049 909 2 430 686
Proceeds from sale of property, plant and equipment 41 050 988
rchase of financial in estments (2 423 628) (3 459 416)
rocee s from financial in estments 5 875 313 278 222
Purchase of intangible assets (1 466 446) ( 499)
Purchase of property, plant and equipment (6 277 755) (2 722 837)
CASH FLOWS FROM FINANCING ACTIVITIES 21 251 330 15 460 130

Government capital grant 16 673 836 11 446 000
Clearance fees 4 577 494 4 014 130
Net increase in cash and cash equivalents 20 806 178 10 581 990
Cash and cash equivalents at beginning of the year 42 366 859 31 784 869
Cash and cash equivalents at December, 31 10 63 173 037 42 366 859
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2018 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS
1. NATURE OF BUSINESS
The Zimbabwe Revenue Authority (ZIMRA) started operations on September 1, 2001 and is constituted in term
of the Zimbabwe Revenue Authority Act [Chapter 23:11] of 1999. Its core business is the collection of revenue
for the Government of Zimbabwe, administration of tax laws and the facilitation of trade and economic develop-
ment in the region and beyond. ZIMRA is funded by the Government of Zimbabwe through grants.
2. BASIS OF PREPARATION
2.1. Statement of compliance
he financial statements for the ear en e ecem er ha e een prepare ith the aim to compl
with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard
Board (IASB). While full compliance has been possible in the previous periods only partial compliance has been
achie e for the financial ear en e ecem er eca se it has not een possi le to compl ith
International Financial Reporting Standard 21 “The effects of Changes in Foreign Exchange Rates” (IAS 21).
ccor in to the concept al frame or for financial reportin for fair presentation of financial statements
entities should consider beyond legal form of transactions but the economic phenomena of the transactions
and the impact on them. IAS 21 requires an entity to apply certain parameters in determining the functional
c rrenc of an entit for se in the preparation of its financial statements he same stan ar re ires an entit
to make certain judgements, where applicable regarding appropriate exchange rates between the currency
where exchangeability through a legal and market exchange mechanism is not achievable.
In the opinion of the directors, the requirements to comply with Statutory Instrument 33(SI 33) of 2019 created
inconsistencies with IAS 21, as well as the principles embedded in the IFRS conceptual framework, and the
Guidance issued by Public Accountants and Auditors Board (PAAB) on March 21 , 2019. This has resulted in
the res lte in the a option of the acco ntin treatment in the c rrent ear s financial statements hich is at
variance from that which would have been applied if the Authority had been able to fully comply with IFRS.
2.2. Basis of measurement
he financial statements are prepare n er the historical cost con ention e cept for iolo ical assets hich
are all measured at fair values and property, plant and equipment, intangible assets, of which are shown at
revalued amounts.
2.3. Functional and presentation currency
hese financial statements are presente in nite States ollars S as prescri e n er Stat tor n-
strument 33 of 2019 and in compliance with local laws as well as relevant guidance provided by the Public
cco ntants an itors oar on arch he thorit a opte the S as the f nctional an
presentation currency.
2.4 Critical accounting judgments, assumptions and estimates
n preparin the financial statements mana ement is re ire to ma e ements estimates an ass mptions
that affect the amo nts presente in the financial statements an relate isclos res se of a aila le information
and the application of judgment are inherent in the formation of estimates. Actual results in the future could differ
from these estimates hich ma e material to the financial statements stimates an n erl in ass mptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimates are re ise an in an f t re perio s affecte Si nificant ments incl e the follo in
2.4.1 Impairment and provisioning policies
t each statement of financial position ate the thorit re ie s the carr in amo nt of its assets to etermine
whether there is an indication that those assets suffered any impairment. If any such indication exists, the
recoverable amount of the assets is estimated to determine the extent of the impairment (if any). If the recoverable
amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. Impairment is recognised as an expense immediately, unless the relevant asset is
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2018 ANNUAL REPORT

carried at a revalued amount, in which case the impairment is treated as a revaluation decrease.
In the event that, in the subsequent period, an asset that has been subject to an impairment loss is no longer
considered to be impaired, the value is restored and the gain is recognised in the statement of comprehensive
income. The restoration is limited to the value which would have been recorded had the impairment adjustment
not taken place.
2.4.2 Useful lives and residual values of property, plant and equipment
The Authority assesses useful lives and residual values of property, plant and equipment each year taking into
account past experience and technology changes. The depreciation rates are set out in note 3.2 and changes
to useful lives have been considered necessary during the year. Management has set residual values for all
classes of property, plant and equipment at zero.
2.4.3 Uncollectable accounts receivable
he thorit estimates the allo ance for ncollecti le acco nts ase on mana ement s assessment of col-
lection indicators to determine the rate applied.
2.4.4 Fair value measurement
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
• In the principal market for the asset
Or
• In the absence of a principal market, in the most advantageous market for the asset.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset, assuming that market participants act in their economic best interest.
External valuers are involved for valuation of land and buildings. Selection criteria for external valuers include
market knowledge, reputation, independence and whether professional standards are maintained.
2.5 New and revised standards and interpretations
2.5.1 Standards effective from 1 January 2018
IFRS 9 Financial Instruments

The standard was issued in July 2014 and is effective for annual periods beginning on or after 1 January 2018.
S s perse es S he o ecti e of this stan ar is to esta lish principles for the financial reportin of
financial instr ments that ill present rele ant an sef l information to sers of financial statements for their
assessment of amo nts timin an ncertaint of the entit s f t re cash o s he thorit a opte an
implemented the IFRS 9 in line with the mandatory adoption date.
ew standards amendments and interpretations issued ut not e ecti e or the financial ear e in-
ning January 1, 2018 and not early adopted
he follo in ne stan ar s an amen ments to stan ar s ha e not een applie in preparin these financial
statements. Earlier application is permitted, however, the Authority has not early adopted the following stan-
dards but intends to adopt these standards, where applicable, when they become effective.
IFRS 16, leases effective for annual periods beginning on or after 1 January 2019, with early
application permitted but only if the entity is also applying IFRS 15, revenue from contracts accounts
with customers.
Under the new standard, IFRS 16, leases, a lessee recognizes a right of use asset and a lease liability. The
ri ht of se asset is treate similarl to other non financial assets an epreciate accor in l he lia ilit
accrues interest.
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2018 ANNUAL REPORT

Impact of IFRS 16 are as follows;

The impact may be on small leases which might be less as the IASB offers an exemption of assets with a
al e of or less hen ne o al e assets meetin this e emption o not ha e to e reco ni e on
the balance sheet
he cost to implement an contin e to compl ith the ne leases stan ar co l e si nificant for most
lessees. Particularly if they do not already have an in-house lease information system.
Lessor accounting remains largely unchanged from IAS 17 however, lessors are expected to be affected due
to the changed needs and behaviours from customers which impacts their business model and lease prod-
ucts.
3. ACCOUNTING POLICIES
he acco ntin policies applie in the preparation of these financial statements are consistent ith those
applie in the financial statements for the perio en e ecem er e cept for propert plant an
equipment (PPE). The accounting policy on PPE changed in 2018 from the cost model to revaluation model.
The change was motivated by the need to ensure compliance with IAS 16 in terms of fair value presentation as
the authority had accumulated assets which are still in use but fully depreciated.
3.1 Property, plant and equipment
Property, plant and equipment is initially recognised at cost. Work in progress, plant and equipment is stated at
cost, net of accumulated depreciation and accumulated impairment losses, if any. Property, plant and equipment
are measured at fair value less accumulated depreciation and impairment losses recognised at the date of
re al ation his is a chan e in acco ntin polic refer to note al ations are performe ith s fficient
frequency to ensure that the carrying amount of a revalued asset does not differ materially from its fair value.
f si nificant parts of an item of propert plant an e ipment ha e ifferent sef l li es then the are acco nte
for as separate major components of property, plant and equipment.
A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However, to the
e tent that it re erses a re al ation eficit of the same asset pre io sl reco nise in profit or loss the increase
is reco nise in profit an loss re al ation eficit is reco nise in the statement of profit or loss e cept to the
extent that it offsets an existing surplus on the same asset recognised in the asset revaluation reserve.
Accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation
reserve relating to the particular asset being disposed is transferred to retained earnings.
An item of property, plant and equipment is derecognised upon disposal or loss when no future economic ben-
efits are e pecte from its se or isposal n ain or loss arisin on e reco nition of the asset is incl e
in the profit an loss section of the statement of profit or loss an other comprehensi e income in the ear the
asset is derecognised.
3.2 Depreciation
ro ision for epreciation is ase on strai ht line asis o er the asset s e pecte sef l life an an or
in progress are not depreciated. The depreciation rates are set out below. Useful lives for assets across the
classes ere carrie o t rin the ear his ha the effect of e ten in sef l li es for specific assets
after a fair assessment of their usefulness to the Authority going forward. The reviews had the effect of extend-
ing lives and the rates of depreciation remained as set out below. The annual rates used for this purpose are:
i t res an fittin s 10%
Furniture and equipment 10%
Plant and machinery 10%
Motor vehicles 20%
Buildings 2%
Computer equipment 33.33%
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2018 ANNUAL REPORT

3.3 Assets held for sale
on c rrent assets are classifie as hel for sale if it is hi hl pro a le that the ill e reco ere primaril
through sale rather than continuing use. Such assets are generally measured at the lower of their carrying
amo nt an fair al e less cost to sale mpairment losses on initial classification as hel for sale an s se-
ent ains an losses on re meas rement are reco nise in the profit or loss nce classifie as hel for sale
the non-current assets are no longer depreciated.
3.4 Revenue grants and donations
Revenue grant is recognised as income during the year in which it is received. Donation are recorded as
income when received
3.5 Capital grants and donations
apital rant is recor e as eferre income in the statement of financial position hen it ecomes recei a le
and is then recognised as income on a systematic basis over the period necessary to match the grant with the
related costs which they are intended to compensate. Grant amortised is credited to the income statement over
the expected useful lives of the respective assets, on a straight line basis.
mplo ee enefits
i. hort term emplo ee enefits
Short term emplo ee enefits are e pense as the relate ser ice is pro i e lia ilit is reco nise for the
amount expected to be paid if the Authority has a present legal or constructive obligation to pay this amount as
a result of past service provided by the employee and the obligation can be estimated reliably.
ii. efined contri ution plan
Obligations for contribution plans are expensed as the related service provided. Prepaid contributions are rec-
ognised as an asset to the extent that a cash refund or a reduction in future payments is available.
iii. ermination enefits
ermination enefits are e pense at the earlier of hen the thorit can no lon er ith ra the offer of those
enefits an hen the thorit reco nises costs for a restr ct rin f enefits are not e pecte to e settle
wholly within 12 months of the reporting date, then they are discounted.
3.7 Inventories
Inventories are valued using the moving average method. Inventory values in the system are determined by
the average of the existing inventory value and the price of incoming inventory. Net realizable value represents
the estimated selling price for inventories less all estimated costs of completion and costs necessary to make
the sale.
3.8 IFRS 9 Financial Instruments
The Authority has fully adopted IFR 9, Financial Instruments with effect from the 1st January 2018. This is a
ne stan ar that replace S rom a classification an meas rement perspecti e the stan ar re ires
that all financial instr ments assessment e ase on the a thorit s siness mo el of mana in the financial
instr ments an the cash o characteristics of the same e cept for eri ati es an e it instr ments
he thorit has f ll complie ith the S an the stan ar rin s si nificant chan es in terms of mea-
surement and recognition from IAS 39. The authority has not restated comparative information for 2017 for
financial instr ments in the scope of S
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2018 ANNUAL REPORT

3.8.1 Business Model Assessment
he a thorit etermines its siness mo el at the le el that est re ects ho it mana es its financial assets to
achie e its siness o ecti es he a thorit s mo el is assesse on an instr ment instr ment asis ase
on the following factors;
• The risks that affect the performance of the business model and how the risk is managed within each
financial asset
• he le el of amo nts hel ithin each financial instr ment
• The security available on securing each asset.
3.8.2 Measurement
Effective 1st an ar the a thorit has classifie all its financial assets ase on the siness mo el for
mana in the assets an the asset s contract al terms meas re at either
• Amortised cost
• Fair value through other comprehensive income (FVOIC)
• air al e thro h rofit an oss
With effect from 1st January 2018, the authority now measures loans and advances to staff, money market
investments and mortgage investments at amortised cost if both of the following conditions are met;
• he financial asset is hel ithin a siness mo el ith the o ecti e to hol financial assets in or er
collect contract al cash o s an
• he contract al terms of the financial asset i e rise on specifie ates to cash o s that are solel
payments of principal and interest (SPPI).
mpairment o financial assets
IFRS 9 replaced the incurred loss model in IAS 39 with an expected credit loss model. The new impairment
model applies to debt instrument recorded at armotised cost or at fair value through other comprehensive in-
come.
lassification o financial assets and lia ilities
he a thorit classifies its financial assets an lia ilities as follo s

• Financial assets held at amortised cost
These include loans and advances to staff and trade advance payments, assets which were previously
recognised as held for sale under IAS 39.
• Cash and cash equivalents

or the p rposes of the statement of cash o s cash an cash e i alents comprise cash in han an
bank balances investments with up to 90days maturity.
• Financial Liabilities
All loans and borrowings which are measured at initial recognition at fair value less directly attributable
transactional costs. After initial recognition interest bearing loans are measured at amortised costs.
e reco nition o financial assets
financial asset is ereco nise hen the ri hts to recei e cash o s from the financial asset ha e e pire
e reco nition o financial lia ilities
financial lia ilit is ereco nise hen the o li ation n er the lia ilit is ischar e cancelle or e pires
3.9 Risk management
3.9.1 Interest rate risk
nterest rate ris is the ris that the fair al e or f t re cash o s of a financial instr ment ill ct ate eca se
of the nforeseen chan es in interest rates he thorit s e pos re to the ris of chan e in mar et interest
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2018 ANNUAL REPORT

rates relates primarily to the held to maturity investments
Exposure to interest rate risk is managed at management level on a proactive basis. Management mitigates
interest rate risks by investing in shorter maturity securities.
3.9.2 Foreign currency transaction and balances
While the Authority records are maintained in United States Dollar, some of its transactions are conducted in
other major foreign currencies including South African Rand, Pula, British Pound and Euros. Transactions in
foreign currencies are translated to United States Dollar at rates of exchange ruling at the time of the transac-
tions. Transaction and translation gains and losses arising on conversion of settlement are dealt with in the
statement of comprehensive income in determination of the operating income.
3.10 Taxation
The Authority`s receipts and payments are exempt from income tax in terms of the third schedule to the Income
Tax Act [Chapter 23:04].
3.11 Development costs
Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process
is technicall feasi le f t re economic enefits are pro a le an the thorit inten s to an has s fficient
reso rces to complete e elopment an to se the asset ther ise e pen it re is reco nise in profit or loss
as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated
amortisation and any impairment losses.
S se ent e pen it re is capitalise onl hen it increases the f t re economic enefits em o ie in the
specific asset to hich it relates ll other e pen it re is reco nise in the profit or loss as inc rre
Any expenditure capitalised is normally amortised over three years.
3.12 Leases
The authority intends to adopt IFRS 16 for the purposes of managing and reporting leases. The Authority will
apply the standard from its mandatory date of 1st an ar he simplifie transition approach ill e a opt-
e an ill not restate comparati e amo nts for the ear prior to first a option i ht of se assets for propert
leases will be measured on transition as if the new rules had always been applied. All other right-of-use assets
will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease
expenses)
3.12.1 Operating leases
he thorit operates in lease premises in some of the locations eases n er hich the ris an enefits of
o nership are effecti el retaine the lessor are classifie as operatin leases li ations inc rre n er
operating leases are charged to the statement of comprehensive income in equal instalments over the period
of the lease e cept hen the alternati e metho is more representati e of the time pattern from hich enefits
are derived. Contingent rentals arising under operating leases are recognised as an expense in the period in
which they are incurred.
3.12.2 Finance leases
Finance leases are recognised as assets and liabilities in the balance sheet at amounts equal to the fair value
of the leased asset or, if lower, the present value of the minimum lease payment, each determined at the incep-
tion of the lease. The discount rate to be used in calculating the present value of the minimum lease payments
is the interest rate implicit in the lease.
inim m lease pa ments are apportione et een finance char es an the re ction of the o tstan in lia ili-
t he finance char e shall e allocate to each perio rin the lease term so as to pro ce constant perio ic
rate of interest on the remaining balance of a liability.
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2018 ANNUAL REPORT

3.13 Intangible assets
An intangible asset is recognised only when its cost can be measured reliably and it is probable that the expect-
e f t re economic enefits that are attri ta le to it ill o to the thorit Soft are ac ire separatel is
measured on initial recognition at cost. Following initial recognition, it is carried at cost less any accumulated
amortization and accumulated impairment loses.
he sef l li es of intan i le assets are assesse as finite ntan i le assets are amortise o er the sef l
economic life and assessed for impairment whenever there is an indication that the intangible asset is reviewed
at the end of each reporting period. Changes in the expected useful life or the expected pattern or consumption
of amortisation period or method as appropriate and are treated as changes in accounting estimates. The am-
ortisation expense is recognised in the statement of comprehensive income.
Amortisation is recognised in the statement of comprehensive income on straight line basis over the useful life
of the soft are mortisation metho s sef l li es an resi al li es are re ie e at each financial ear en
and adjusted if appropriate.
The estimated economic useful life applied is as follows:

SAP Operating software 3 years
Other software 3 years
3.14 Biological assets
iolo ical assets are meas re at fair al e less cost to ispose ith an chan e therein reco nise in profit
or loss.
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2018 ANNUAL REPORT

4 Property, plant and equipment
Buildings Land Plant ffice Furniture, Computer Network
Motor Construc-
and Fixtures, Vehicles tion
Work
Machinery Equipment Fittings and Equipment Equipment
In
Equipment Progress 31-Dec-18 31-Dec-17
USD USD USD USD USD USD USD USD USD USD USD
Opening carrying amount 79 137 337 4 071 282 18 844 522 742 441 2 037 017 3 527 886 2 088 619 1 999 826 16 181 769 128 630 699 135 542 113
Gross carrying amount 88 587 558 4 071 282 34 019 495 1 303 721 4 104 273 22 022 541 10 237 877 3 391 774 16 181 769 183 920 290 182 982 558
Accumulated depreciation and impair-
ment (9 450 220) - (15 174 973) ( 561 280) (2 067 256) (18 494 654) (8 149 258) (1 391 948) - (55 289 591) (47 440 445)
Additions at cost 40 032 585 938 1 120 692 48 672 786 176 2 130 531 27 200 130 777 1 407 737 6 277 755 2 722 837
Revaluation 6 041 449 1 455 651 1 053 821 21 056 980 1 974 869 31 582 770
eclassification to lan from il in (3 555 600) 3 555 600 - - - - - - - - (1 629 662)
eclassification to il in from cons-

ruction work in progress 180 383 - - - - - - - ( 180 383) - -
Disposal - carrying amount - - - ( 1 964) - - ( 31 642) - - ( 33 606) ( 120 800)
Disposal at cost/deemed cost - - ( 4 714) - - ( 177 900) - - ( 182 614) ( 155 442)
Depreciation on disposals - - - 2 750 - - 146 258 - - 149 008 34 642
Impairment loss - - - - - - ( 1 581) - - ( 1 581) -
Depreciation charge for the year (1 810 325) - (1 986 411) ( 203 239) ( 347 276) (7 677 910) ( 694 120) ( 159 437) - (12 878 720) (7 883 788)
Closing carrying amount 73 991 827 8 212 820 24 020 252 2 041 561 3 529 738 19 037 487 3 363 344 1 971 165 17 409 123 153 577 317 128 630 699
Gross carrying amount 85 252 373 8 212 820 41 181 636 2 803 331 5 944 270 45 210 052 12 062 046 3 522 551 17 409 123 221 598 202 183 920 290
2018 ANNUAL REPORT

Accumulated depreciation and impair- (11 260
ment 546) - (17 161 384) ( 761 770) (2 414 533) (26 172 565) (8 698 702) (1 551 385) - (68 020 884) (55 289 591)
67
4.1 Effects of revaluation
The Authority with effect from the 1st of January 2018 adopted asset Revaluation Model to replace the Cost Model This
as in p rs it of the nee to present fairl financial statements for the or anisation an also to f ll compl ith S
The effective date of the revaluation is therefore the beginning of January 2018.The revaluation process was purely an in-
ternal matter with no independent valuers involved, however values from independent valuers such insurance companies
were considered as part of investigation to obtain market values.
he effect of the re al ation as to increase the re al ation s rpl s an epreciation for the ear
an on acc m late epreciation of
Property plant and equipment USD

Opening Carrying Amount 27 240 485
Additions during the year 4 113 271
Disposals During the year ( 33 606)
Depreciation (10 908 957)
Revaluation Gain 31 582 770
Impairment Loss ( 1 581)
Closing Carrying Amount 51 992 382
Intangible assets USD

Opening Carrying Amount 13 940 279
Additions during the year 431 250
Armotisation (8 607 804)
Revaluation Gain 17 042 136
Work in progress 1 035 196
Closing Carrying Amount 23 841 057
A revaluation was carried out for the year ended 31 December 2018, by management. The revaluation affected the follow-
in classes otor ehicles lant an ipment ffice ipment rnit re ittin s an ipment f the assets
had not been revalued, the assets would have the following carrying amounts;
USD
Motor Vehicles 1 792 802
lant achiner 18 582 914
ffice ipment 731 475
Furniture and Fittings 2 581 299
ICT Equipment 4 997 217
Whilst the intangible assets would

have had a carrying amount of 12 478 589
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2018 ANNUAL REPORT

31-Dec-18 31-Dec-17
USD USD
5 Intangible assets
SAP software and development cost
Opening carrying amount 13 940 279 19 588 997
Gross carrying amount 43 755 747 42 157 731
Accumulated amortisation
(29 815 468) (22 568 734)
Additions at cost 431 250 499
Revaluation 17 042 136 -
Work in progress 1 035 196 1 597 517
Amortisation (8 607 804) (7 246 734)
Closing carrying amount 23 841 056 13 940 279

Gross carrying amount 62 264 329 43 755 747
Accumulated amortisation (38 423 273) (29 815 468)
6 Biological assets
Opening balance 45 250 48 625
Fair value 13 750 -
Disposal ( 14 063) ( 3 375)
44 938 45 250
The fair value measurement of canine dogs has been categorised as Level 1 fair values based on market prices of dogs of
similar age, weight and market values.
7 Financial asset and liabilities 31-Dec-18 31-Dec-17

7.1 Non- current USD USD
Mortgage support investment 8 933 486 8 551 548
Current
Money market investments 2 870 938 6 410 658
11 804 424 14 962 206
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2018 ANNUAL REPORT

7.2 inancial assets and financial lia ilities

his note pro i es information a o t the thorit s financial instr ments incl in 31-Dec-18 31-Dec-17
n o er ie of financial instr ments hel the thorit USD USD
Specific information a o t each t pe of financial instr ment
· Accounting Policies
· Information about determining the fair value of the instruments, including
judgements and estimation uncertainty involved.
he thorit hol s the follo in financial instr ments
inancial assets armotised at cost:

Accounts receivables 4 210 437 3 800 888
Mortgage support investment 8 933 486 8 551 548
Investments 2 870 938 6 410 658
ash cash e i alents 63 035 955 42 366 859
79 050 816 61 129 953
Financial Liabilities
Liabilities armotised at cost:
Acounts payables 19 790 147 18 007 867
19 790 147 18 007 867
The maximum exposure to credit risk at the end of the reporting period is the carrying
amo nt of each class of financial assets mentione a o e
7.3 Receivables 31-Dec-18 31-Dec-17

USD USD
Current Assets
Receivables 2 826 976 2 072 189
Loss allowance (Expected credit loss) ( 6 059) -
2 820 917 2 072 189
Classi cati n acc unts eceiva les
Accounts receivables are amounts due from employees, tenants and agents for services performed in the ordinary course of
business. Services include loans extended to employees, acommodation services provided to tenants and revenue collec-
tion ser ices he are enerall e for settlement ithin a s to a ma im m of a ear an therefore are all classifie
as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain
si nificant financin components hen the are reco nise at fair al e
ai value acc unts eceiva les

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
t a e su t invest ent
Mortgage support investment is an investment in support of the ZIMRA Staff Mortgage loan scheme. The investment is seed
money to enable to the banks to give out loans to staff at concessionary rates. The loan is recognised at the consideration
amo nt nless if the are si nificant financial components chan es hen it ill e reco nise at fair al e he carr in
amount is considered to be the same as the fair value.
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2018 ANNUAL REPORT

Short-term investments (money market)
These are shortterm investments 30 to 90 days made with funds not immediately required for use but can be called back
when required without loss of interest. Their carrying amounts are considered to be the same as their fair value. Investments
are based on prevailing money market rates.
Cash and cash equivalents
his is compose of an alances as at the financial statements ate he alances are ma e of ostro amo nts in S
an also S an on notes amo nts s at the financial statements ate the on notes an
RTGS were a surrogate to the USD hence were treated as such. The RTGS and Bond note balances were converted to USD
at 1:1 ratio.The other Nostro, currencies were converted to USD at the previaling international cross rates.
31-Dec-18 31-Dec-17
Current assets USD USD
Cash and cash equivalents 63 173 037 42 366 859
63 173 037 42 366 859
7.4 Accounts and other payables
Current liabilities
Accounts payable 19 790 147 18 007 867

Provisions 14 754 544 7 690 792
Finance lease obligation (short-term) 21 164 20 118
34 565 855 25 718 777
Accounts payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and
other payables are considered to be the same as their fair values, due to their short-term nature.
31-Dec-18 31-Dec-17
8 Accounts receivables USD USD
Other debtors 175 721 976 809
Rent receivable 158 814 183 179
Commission receivable 731 752 290 606
Staff debtors 2 826 976 2 072 189
Travelling and subsistence advances 104 630 67 212
Accrued interest 232 485 210 893
4 230 377 3 800 888
9 Assets held for sale
These are assets earmarked for disposal and have gone through the disposal process and approved for sale. The balances
are a res lt of timin of sale he assets are hel at fair al e or net realisa le amo nts rin assets al e at
were sold.
Current assets 31-Dec-18 31-Dec-17
USD USD
Assets held for sale 15 200 16 000
15 200 16 000
10 Cash and cash equivalents

Bank balances 12 196 400 5 988 666
Bank balances nostro fca 2 199 -
Cash in hand petty cash 11 319 7 820
Funds on call and deposits 50 963 119 36 370 372
63 173 037 42 366 859
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2018 ANNUAL REPORT

31-Dec-18 31-Dec-17
USD USD
11 Deferred income
Opening balance 61 516 904 61 187 298
Additions during the year 21 251 330 15 460 130
Amortised during the year (21 486 524) (15 130 524)
61 281 711 61 516 904
12 Finance lease
inance lease relates to lan ith a ear lease term nn al nstalments are pa a le in a ance he thorit s
o li ations n er the finance lease are sec re the lessor s title to the lease assets here is an ann al escalation
of lease rentals of not more than 5% on the minimum lease instalments. The future minimum lease payments payable
n er the finance lease are as follo s
Reconciliation between minimum lease payments and their present

alue: 31-Dec-18 31-Dec-17
USD USD
otal minimum finance lease pa ments 1 661 821 1 704 363
Not later than one year 21 271 21 271
ater than one ear t not later than fi e ears 63 814 85 085
ater than fi e ears 1 576 735 1 598 006
Finance costs (1 354 760) (1 375 924)

ccr e finance costs for c rrent ear ( 21 164) ( 21 164)
Finance costs still to be recognised over lease term (1 333 596) (1 354 760)
Present value of minimum lease payments 349 138 349 251

Not later than one year 21 164 20 118
ater than one ear t not later than fi e ears 74 166 70 147
ater than fi e ears 253 808 258 986
13 Provisions
Performance award 879 000 768 396
Provisions for pending labour disputes 8 982 542 2 349 641
Leave pay provision 4 893 002 4 572 756
14 754 544 7 690 792
he pro ision represents the irectors est estimate of the thorit s lia ilit ha in ta en le al a ice
31-Dec-18 31-Dec-17
14 Other income USD USD
rofit on isposal of assets 6 644
Auction income 21 761 988
Insurance 1 292 783 924 875
Clearing of vehicles( Central Vehicle Registration) 281 204 246 425
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2018 ANNUAL REPORT

31-Dec-18 31-Dec-17
USD USD
Exchange gain 80 456 -
Gain from price difference 3 768 2 699
Fair value income 13 750 -
Tender documents sales 10 560 5 400
Other commissions 51 971 44 706
Fiscal device income 1 238 350 379 400
Commission on Kariba dam toll fees 2 080 1 797
Miscellaneous 6 757 22
3 010 084 1 606 311
15 Payables
Bandwidth 403 947 157 000
Electricity and rates 115 568 73 790
Cellphone charges 5 505 18 197
Hotel accommodation 70 990 109 886
Consultancy 193 127 521 053
Insurance excess - 1 010
Hire of conference facilities 550 14 850
Legal fees - 33 853
Hardship allowance 35 415 3 101
Transport allowance - 3 750
Overtime 382 101 308 631
Salary arrears - 32 486
Housing allowance 1 043 9 293
Acting allowance 19 000 16 114
neral enefit 29 791 15 800
Repairs and maintenance motor vehicles 41 859 82 585
Cleaning 28 405 79 200
Security 86 965 3 382 442
Books and courier services - 1 234
Operational utilities 1 484 1 604
Licencing and subscriptions 1 592 070 968 093
Repairs and maintenance 74 914 107 546
Marketing and publicity 111 863 141 952
Protective clothing 673 -
Travelling and subsistence 24 618 21 803
Rentals 34 495 175 673
Telephone charges 9 266 29 286
enefit allo ance - 17 924
Hire - computer equipment - 13 689
Board Fees and Allowances 22 000 -
Fuels and oils - -
73
2018 ANNUAL REPORT

31-Dec-18 31-Dec-17
USD USD
GRIR
Trade creditors 10 983 815 6 343 736
Invoice management system 3 836 758 3 836 758
Retention for default liability on projects 470 849 466 905
Tax obligations 866 686 1 018 624
19 790 147 18 007 867
16 Employment cost
Cash in lieu of leave 1 527 993 610 675
Overtime 2 698 508 2 447 184
Medical expenses 4 450 602 3 926 518
Pension contributions 4 752 317 4 144 393
Social security contributions 1 212 996 1 201 826
Salaries an enefits 82 223 994 54 547 255
Zimbabwe manpower development and standard levy 1 315 017 1 080 595
98 181 426 67 958 446
17 Administration costs
Allowance for credit loss 6 059 29 271
Discontinued projects 352 939 193 055
Board fees and allowances 246 733 292 582
Cleaning 756 987 865 104
Consultancy and legal fees 2 193 573 1 555 465
Depreciation and amortisation 21 486 524 15 130 524
Obsolete stock written off 227 101 933
Write down of consumables to net realisable value 6 557 5 784
Loss on disposal of property, plant and equipment items - 123 375
Donation of biological assets 14 063 -
Marketing and publicity 1 007 348 1 339 208
Motor vehicle expenses 3 068 339 2 695 230
ffice accommo ation 2 051 497 1 768 310
ffice an operational tilities 2 942 817 2 541 982
Printing and stationery 1 152 279 882 043
Protective clothing 22 637 12 604
Recruitment fees 171 576 20 486
Rentals and hire 3 859 352 2 995 621
Repairs and maintenance 3 006 830 2 864 726
Security 2 725 078 5 825 265
Staff welfare 52 622 15 637
Subscriptions and licensing 3 207 217 4 446 097
Telephone and postages 1 396 699 1 414 993
Training costs 427 166 323 852
Uniforms 247 188 348 035
Fiscalisation devices 694 265 165 298
74
2018 ANNUAL REPORT

31-Dec-18 31-Dec-17
USD USD
Auditor General 53 664 61 086

HLB Zimbabwe - 8 534
Deloitte and Touche - 16 857
Ernst and Young 29 623 29 623
Impairment loss 1 581 -

Travel and subsistence 5 643 804 4 804 084
Exchange loss 9 805 212 656
56 835 049 51 089 320
18 Related party transactions
18.1 Board of directors

The board of directors consisted of ten members. The board was appointed with effect from June 26, 2015 and was dis-
solved on 1st October 2018. Gross sitting allowances and fees for the directors up to to the date of dissolution for the year
ended December 31, 2018 were as follows:
31-Dec-18 31-Dec-17
USD USD
Board fees 157 500 170 000

Board chairperson 18 000 24 000
Vice Board chairperson 15 000 20 000
Other board members 124 500 126 000
Sitting allowances 89 233 122 583

Board chairperson 6 150 20 761
Vice Board chairperson 9 500 15 400
Other board members 73 583 86 422
246 733 292 582

18.2 Key management compensation
he thorit s e ec ti e mana ement consists of ten irectors em neration of e ec ti e irectors of the thorit com-
prise of an annual base salary, annual bonus, social security contribution, pension contributions, medical aid contribution
an other enefits he on s is ase on act al performance incl in in i i al an entit performance
31-Dec-18 31-Dec-17
USD USD
18.3 hort term emplo ee enefits 2 414 374 2 666 090

Basic salary 1 328 507 763 262
enefit allo ance 563 524 253 377
Subscriptions 1 157 25 447
Motor vehicle allowance 173 714 830 145
School fees 104 959 339 319
Perfomance Award 49 526 126 077
Board fees 54 000 16 500
Clothing allowance 29 924 61 521
ar ner s allo ance 2 451 11 893
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31-Dec-18 31-Dec-17
USD USD
oo s allo ance 2 451 11 893
Housing allowance 3 895 12 982
Holiday allowance 61 174 162 417
Medical aid 26 720 47 134
Acting allowance 12 372 4 124
ost emplo ment enefits 153 367 130 242

Pension 125 928 114 495
NSSA 13 759 2 695
Group life assurance 12 080 11 525
Funeral fund 1 600 1 526
Total 2 567 741 2 796 332
Cost per employee

Employment cost 98 181 426 68 262 001
Number of employee 2 786 2 831
Tax revenue collected 5062 450 433 3712 759 178
Cost of collection 52 54
19. Pension arrangements
19.1 Pension Scheme
he thorit operates a efine ontri tor Scheme plan a ministere l t al he retirement enefits for
the n a ministere l t al are etermine reference to the emplo ee s contri tions pl s emplo er s
contribution and interest earned on the Fund and contributions by the employer. Currently 15% of pensionable income
is char e to the statement of profit or loss rin the ear n er re ie pension f n contri tions amo nte to
USD4 752 317 (2017:USD4 144 393).
19.2 National Social Security Authority (NSSA)
The National Social Security Authority was introduced on 1st October 1994 and with effect from that date all employees
are members of the scheme, to which both the company and its employees contribute as follows:
Employees: 3.5% of the monthly basic salary
Authority: 3.5% of the monthly basic salary
mo nt char e thro h the statement of profit or loss rin the ear n er re ie amo nte to S
(2017: USD 1 201 826).
20. Subsequent events
arehouse dama e fire
n the th of an ar a areho se in eit ri e as tte o n fire he areho se as ho sin

goods detained from travellers and importers pending payment of duty or had already been forfeited to the state. The
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2018 ANNUAL REPORT

areho se ha a oo al e of an as ins re for the same al e n ins rance claim as lo e ith
the insurer claiming for the damaged warehouse. Management is positive that the claim will be accepted and claimed
funds will be used to construct a new ware house as the current site will no longer be suitable due to the border
p ra e he areho se as e tensi el ama e an the ca se of fire is still a s ect of in esti ation his has a
bearing on the status of assets as reported in the Financial Statements of 2018.
20.2 Change in functional currency
On 20 February 2019, the Governor of the Reserve Bank of Zimbabwe, announced a Monetary Policy Statement. Set out
below are the key matters
· The introduction of the RTGS dollars as part of the multicurrency basket
· RTGS dollar to be used as the accounting and pricing currency for Zimbabwe from 22 February 2019
· Establishment of the interbank foreign exchange market where the exchange rates of the multi-currencies against the
RTGS dollar would be determined by the market
The Directors have assessed and concluded that this be disclosed as a non- adjusting subsequent event as per IAS 10:
Events after the Reporting Period.
The following is an illustrative sensitivity analysis of the impact of applying different exchange rates on the 2018 statement
of financial position ase on ass mptions of parit an inter chan ea ilit et een the S an S alances
Sensitivity Analysis
Components of reported Period Sensitivity Analysis

Element Monetary Monetary Non- Total USD Total RTGS Total RTGS Total RTGS
Assets/ Assets/ Mon- : : : :
Liabilities Liabilities etary
Nostro RTGS Dollar Assets/
FCA USD Liabili-
ties USD
Non Current Assets 8 596 485 177 800 311 - 186 396 796 199 291 524 203 589 767 222 863 087
ropert ipment 153 577 317 - 153 577 317 153 577 317 153 577 317 153 577 317
Intangible assets 23 841 056 - 23 841 056 23 841 056 23 841 056 23 841 056
Biolgocial Assets 44 938 - - 44 938 112 344 134 813 235 562
Mortgage Support 8 551 548 381 938 - 8 933 486 21 760 808 26 036 582 45 209 152
Investment
Current Assets 98 613 73 653 449 - 73 752 062 73 283 816 73 949 289 74 170 379
Inventory - 2 721 216 - 2 721 216 2 721 216 2 721 216 2 721 216
Accounts Receiva- - 4 230 377 - 4 230 377 4 212 955 4 230 377 4 230 377
bles
Assets held for sale - 15 200 - 15 200 15 200 15 200 15 200
Investments - 2 870 938 - 2 870 938 2 870 938 2 870 938 2 870 938
ash ash i - 98 613 63 074 422 - 63 173 035 63 181 357 63 370 262 63 591 353
alents
Prepayments - 741 296 - 741 296 282 150 741 296 741 296
Total Assets 8 695 099 251 453 760 - 260 148 858 272 575 340 277 539 056 297 033 467
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2018 ANNUAL REPORT

Element Monetary Monetary Non- Total USD Total RTGS Total RTGS Total RTGS
Assets/ Assets/ Mon- : : : :
Liabilities Liabilities etary
Nostro RTGS Dollar Assets/
FCA USD Liabili-
ties USD
Current Liabilities 7 491 487 27 074 368 - 34 565 855 45 803 086 49 548 830 66 344 744
Short term portion of - 21 164 - 21 164 21 164 21 164 21 164
finance lease
Provisions - 14 754 544 - 14 754 544 14 754 544 14 754 544 14 754 544
Accounts Payables 7 491 487 12 298 660 - 19 790 147 31 027 378 34 773 122 51 569 036
Net Assets 1 203 611 224 379 392 - 225 583 003 226 772 254 227 990 226 230 688 723
Key assumptions
The following assumptions

were made in arriving at the
sensitivity analysis
he e chan e rates se are the official rates at polic chan e ate e r ar at the ate of finalisin the finan-
cial statements (8 May 2019) and the third is a forecast of the exchange rate in the future.
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REVENUE RETURN
for the fiscal perio en in ecem er
DESCRIPTION ACTUAL BUDGET ACTUAL BUDGET

31/12/2018 31/12/2018 31/12/2017 31/12/2017
USD$ USD$ USD$ USD$
TOTAL REVENUE 5 062 450 433 4 300 000 000 3 712 759 178 3 400 090 000
1 TAXES ON INCOME AND PROFITS 1 827 915 255 1 439 062 000 1 293 203 073 1 196 235 000
1.1 Income Tax

Individuals 918 804 919 850 000 000 736 598 885 763 000 000
Companies 846 706 602 490 000 000 501 927 067 337 200 000
Aids levy (51 422 666) - (37 155 779) -
1 714 088 854 1 340 000 000 1 201 370 173 1 100 200 000
1.2 Capital Gains

Capital gains taxes 2 6 7 4 6 8 8 0 2 6 4 5 4 5 6 0 2 5 8 9 6 3 1 3 2 5 4 0 0 0 0 0
CG T companies - - 9 2 2 3 6 7 -
CG T witholding 5 8 7 1 0 9 8 3 6 0 7 4 4 0 3 6 9 1 6 6 8 3 6 0 0 0 0 0
32 617 978 30 062 000 30 510 347 29 000 000
1.3 Domestic dividends and interest
on resi ent sharehol ers ta e ec ti e

directors 5 797 988 18 255 501 3 874 015 17 325 000
Non resident tax on fees 40 918 691 14 139 206 30 923 223 13 602 000
Non resident tax on royalties 5 240 702 3 526 442 1 739 428 3 596 000
Non resident tax on remittance 3 568 307 9 418 568 2 290 311 9 235 000
Non resident tax on interest 13 503 - 95 867 -
on resi ent sharehol ers ta 15 558 601 9 377 219 8 518 040 9 030 000
esi ent sharehol ers ta 5 556 322 7 263 321 6 554 910 7 152 000
Resident tax on interest 4 408 041 7 019 744 7 188 671 7 095 000
Non executive directors fees 146 268 - 138 086 -
81 208 422 69 000 000 61 322 552 67 035 000
2 TAX ON GOODS AND SERVICES 2 696 023 552 2 534 188 000 2 121 968 824 1 974 391 000
2.1 Customs Duties
Prime and surtax 425 281 594 358 880 000 314 556 517 287 540 000
Less duty refunds (3 216 785) - ( 339 278) -
Deposits made in advance 27 238 846 - 5 496 847 -
449 303 654 358 880 000 319 714 086 287 540 000
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REVENUE RETURN
2.2 Excise Duties
ACTUAL BUDGET ACTUAL BUDGET
31/12/2018 31/12/2018 31/12/2017 31/12/2017
USD$ USD$ USD$ USD$
Beer 82 699 042 65 000 000 46 963 573 71 011 000
Tobacco 32 312 726 25 800 000 22 848 478 22 040 000
Wine and spirits 11 973 476 20 000 000 29 622 757 16 895 000
Second hand motor vehicles 3 554 885 3 500 000 2 839 215 3 125 000
Fuel 598 202 665 634 000 000 544 219 126 501 338 000
Electric lamb 205 8 000 1 413 12 000
Airtime 115 226 008 67 000 000 61 372 826 60 295 000
843 969 006 815 308 000 707 867 387 674 716 000
2.3 Value Added Tax
On local sales 1 1 7 8 3 9 0 3 2 2 9 5 9 0 0 0 0 0 0 9 2 0 7 9 3 9 2 8 6 6 6 2 3 5 0 0 0
Import tax 5 2 1 5 0 2 4 4 2 4 0 1 0 0 0 0 0 0 3 9 9 9 2 0 9 6 2 3 4 5 9 0 0 0 0 0
Less refunds (2 9 7 1 4 1 8 7 3 ) - (2 2 6 3 2 7 5 4 0 ) -
1 402 750 892 1 360 000 000 1 094 387 351 1 012 135 000
3 OTHER TAXES 5 3 8 5 1 1 6 2 6 3 2 6 7 5 0 0 0 0 2 9 7 5 8 7 2 8 2 2 2 9 4 6 4 0 0 0
Tobacco levy 15 189 333 1 3 9 5 0 0 0 0 1 3 7 5 4 1 5 9 1 0 9 0 4 0 0 0
Clearance fees - - - -
Presumptive tax (Informal traders tax) 6 350 471 1 1 0 4 2 6 3 7 4 8 5 2 5 3 2 6 8 3 0 0 0 0
Withholding tax on contracts 160 607 045 1 4 1 7 2 5 5 0 8 1 2 1 3 5 0 5 7 0 8 7 5 1 0 0 0 0
Intermediate money transfer 186 735 055 - 1 8 6 9 3 0 7 0 -
Stamp duties and fees 13 832 507 3 1 7 4 5 4 1 7 1 1 6 7 3 3 5 7 1 9 5 8 7 0 0 0
Net mining royalties 95 669 293 - 7 1 8 0 1 2 2 7 -

Mining royalties 95 669 293 9 0 0 0 0 0 0 0 7 3 1 1 0 9 4 1 6 8 7 7 0 0 0 0
Less refunds - - (1 3 0 9 7 1 4 ) -
Carbon tax 41 714 251 3 5 9 4 0 0 0 0 3 2 0 5 2 9 8 8 3 5 3 4 0 0 0 0
ATM levy 5 306 122 8 4 6 4 3 7 3 9 4 4 8 7 5 5 2 3 0 0 0
Miscellaneous 134 768 - 2 0 1 9 9 0 0 -
Sport betting tax - 1 5 0 0 0 0 0 - -
Accounting fees 350 828 - 3 5 5 1 2 0 -
Fines 5 292 014 - 3 5 0 2 4 4 9 -
Interest 116 058 - 2 3 7 9 6 8 -
Cancellation fees 77 071 - 1 0 1 5 0 0 -
Net rummage sales 3 747 722 - 9 5 0 9 0 0 -

Gross rummage sales 4 305 503 - 1 2 5 0 3 3 2 -
Less rummage sale expenses ( 557 781) - ( 2 9 9 4 3 2 ) -
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REVENUE RETURN
DESCRIPTION ACTUAL BUDGET ACTUAL BUDGET
31/12/2018 31/12/2018 31/12/2017 31/12/2017
USD$ USD$ USD$ USD$
Bussiness licences 90 329 - 5 5 0 0 3 -
State warehouse rent 1 290 278 - 7 6 0 3 2 8 -
eposits not et classifie 2 008 481 - 9 5 0 3 8 7 7 -
Treasury bills maturities - - 1 9 7 7 4 5 9
538 511 626 326 750 000 297 587 282 229 464 000
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
P . M w a sh ita
Director Fin, corp Planning &
Modernization
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
F . M A Z A N I
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
C . Jo ko n ya
(Board Chairperson)
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2018 ANNUAL REPORT

ACCOUNTING POLICIES AND NOTES TO THE REVENUE RETURN
1. MANDATE OF ZIMBABWE REVENUE AUTHORITY
The Zimbabwe Revenue Authority (ZIMRA) started to operate as an Authority on September 1, 2001
from the former Department of Taxes and is constituted in terms of the Revenue Authority Act [Chap-
ter 23:11] of 1999. Its core business is the collection of revenue for the Government of Zimbabwe,
administration of tax laws and the facilitation of trade and economic development in the region and
beyond.
2.1 Statement of compliance
The Revenue Return for the year ended December 31, 2018, has been prepared in accordance with
the Revenue Authority Act [Chapter 23:11] and Public Finance Management Act [Chapter 22:19].
The Revenue Return was prepared based on the statutory records that were maintained under the
cost basis.
2.3. Reporting currency
his ret rn is presente in the nite States ollar S hich is the reportin c rrenc ll the fi-
nancial information presented has been rounded to the nearest dollar. On 20 February 2019, through
the onetar olic statement the eser e an anno nce the intro ction of the S as an
official electronic c rrenc an to e s se entl a opte as the f nctional an reportin c rrenc
for Zimbabwe effective February 25, 2019. This change means that in 2019 the reporting currency
for this ret rn ill chan e to the S all forei n c rrencies ill e con erte at the spot rate to
S
The Revenue Return was prepared based upon accounting policies which have been consistently
applied from the preceding years.
3.1. Taxes revenue
All tax revenue collected by the Zimbabwe Revenue Authority is paid direct into the Exchequer ac-
count except otherwise stated.
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ACCOUNTING POLICIES AND NOTES TO THE REVENUE RETURN
3.2. Revenue return
ll collections a of ta es ties ro alties fees an ref n s are re ecte in the e en e et rn
4. NOTES TO THE REVENUE RETURN
4.1 Deposits made in advance
Deposits made in advance are amounts, which are deposited into a clearing agent business partner
account for consignments which are levied customs duties when coming into the country. The
payments are made in advance. During the year under review deposits made in advance amounted
to USD27 238 846 (2017 USD5 496 847).
4.2 Amounts not receipted
Amounts not receipted arise when a client deposits a tax obligation without adequate details to the
thorit s an ers hese eposits ill remain nreceipte ntil the clients pro i e a e ate etails
which will facilitate receipting. The amount not receipted was remitted to Treasury in 2018. During the
year under review the amount not receipted was USD5 831 135 (2017 USD USD9 503 877).
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2018 ANNUAL REPORT

RECEIPTS AND DISBURSEMENTS ACCOUNT
for the year December 31, 2018
Historical Cost
2018 2017
Description Dr Cr Dr Cr
U S$ US$ US$ US$
Opening balance as @ 01.01.2018 23 001 829 17 094 774
Opening investment bank balances as @ 01.01.2018 650 885 3 842 704
Opening investment bank balances adjustment as @
01.01.2018 1 100 455
Additions during the year 5 5 264 754 610 4 085 638 282
Less Disbursements in respect of;
V A T re fu n d s 2 7 2 3 4 5 5 2 7 2 0 8 4 0 4 7 1 1
E xch e q u e r a co u n t 4 6 1 3 1 0 4 8 2 3 3 6 0 6 3 4 3 7 5 9
R e te n tio n g r a n t 6 1 4 5 4 1 4 5 8 4 1 2 3 4 7 6 8 7 2
B a n k ch a rg e s 1 4 9 5 3 2 1 4 8 6 3
A i d s l e vy 4 8 0 7 6 7 2 1 3 5 0 5 4 9 9 0
N O C Z IM l e vy 4 9 5 6 9 4 2 6 3 5 9 5 4 5 0 2
V e h i cl e r e g i st r a t i o n n u m b e r s 4 8 1 3 1 5 5 4 6 4 2 3 3 7
C o m m i si o n s 1 4 1 3 5 7 8 1 0 3 1 7 2 5
M o t o r i n su r a n ce 1 0 1 9 9 5 6 1 6 8 5 1 1 4 6
T o ll fe e s 1 7 5 8 8 1 6 5 8 8
S t r a t e g i c l e vy 2 6 0 0 9 0 6 6 1 9 5 2 9 2 9 4
P e tr o le u m l e vy 2 0 6 4 0 1 5 2 7 2 3 8 9 7
T r a n si t f e e s 1 0 7 2 4 2 1
R o a d a ce s fe e s 9 1 4 8 3 1 0 2 3 8 5 4 6 7
V e t e r i n a r y i n sp e ct i o n f e e s 4 7 8 4 6 2 7 0 2 6
R e a f f o r e st a t i o n l e vy 4 8 6 7 9 7 5 8 2 1 9 0 0 1
P r e su m p t i ve t a x l e vy 5 8 4 5 5 6 3 2 0 8 5 3 8 8
H e a l t h f u n d - a i r t i m e l e vy 5 1 1 4 1 6 1 1 2 5 3 3 2 6 6 1
H e a l t h i n sp e ct i o n f e e s 3 6 0 7 9 9 3 7 7 4 7 4
P l a n t q u a r a n t i n e se r vi ce s & f e r t l i ze r, fe e d s & r e m m e d ie s 3 4 2 1 8 0 4 5 0 9 2 4
C l o si n g i n ve st m e n t b a n k b a l a n ce s a s D e ce m b e r 3 1 , 2 0 1 8 8 6 3 8 6 4 6 5 0 8 8 5
M a i n a co u n t b a n k b a l a n ce a s a t D e ce m b e r 3 1 , 2 0 1 8 7 4 3 7 1 0 9 8 3 2 3 0 0 1 8 2 9
T O T A L 5 289 507 779 5 289 507 779 4 106 575 760 4 106 575 759
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
P . M w a s h ita ,
Director Fin,Admin and Infrastructure.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
F . M a za n i,
Commissioner General.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 1 9 .
C . J o k o n y a ,
(Commissioner General).
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ACCOUNTING POLICIES AND NOTES TO THE RECEIPTS AND DISBURSEMENTS RETURN
beyond.
The Receipts and Disbursements Return for the year ended December 31, 2018, has been prepared
in accordance with the Revenue Authority Act [Chapter 23:11] and Public Finance Management Act
[Chapter 22:19].
The Receipts and Disbursements Return was prepared based on the statutory records that are
maintained under the historical cost basis.
This return is presented in the United States Dollar (USD) which is the reporting currency. All the
financial information presente has een ro n e to the nearest ollar
On 20 February 2019, through the Monetary Policy statement, the Reserve Bank announced the
intro ction of the S as an official electronic c rrenc an to e s se entl a opte as the
functional and reporting currency for Zimbabwe effective February 25, 2019. This change means that
in the reportin c rrenc for this ret rn ill chan e to the S all forei n c rrencies ill e
con erte at the spot rate to S
The Receipts and Disbursements Return was prepared based upon accounting policies which have
been consistently applied from the preceding years.
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2018 ANNUAL REPORT

3.1. Taxes revenue
3.2. Receipts
Collections from clients for various statutory obligations are accounted for as receipts.
3.3 Disbursements
Payments to Exchequer, third parties and Treasury are accounted for as disbursements.
4. NOTES TO THE RECEIPTS AND DISBURSMENTS RETURN.
4.1 Motor Insurance
The Authority entered into an agreement with the Motor Insurance Pool to sell third party insurance
cover to foreign registered vehicles entering Zimbabwe at all border posts.
In accordance with the existing agreement, the Pool shall pay ZIMRA an issuing and collection fee of
ten percent (10%) of the total collected from issued policies.
4.2 Investments
or the fiscal ear en e ecem er the thorit ha e an in estment of S

in Treasury bill, which relates to amounts that were taken over by the Reserve bank, which were
redeemed in 2018.
4.3 Exchange gains
Included in the transfers to Exchequer accounts are exchange gains relating to duties, taxes and
fees paid in another currency, which results in a gain when the amount is converted to USD.
4.4 Retention
The retention relates to taxes that the Authority retains from collections for use in their operations.
During 2018 The Authority retained Grant, Clearance Fees, Sealing Fees and Sealing Fines
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4.5 Commissions
The commission relates to amounts the Authority retains from acting as an agent.
5 Additions during the year
2018 2017
US$ US$
Deposits from tax 5 253 867 134 4 085 638 282
Proceeds from investment matured during the year 887 476 -
TOTAL 5 264 754 611 4 085 638 282
6 Retention grant
2018 2017
US$ US$
Grant 139 884 645 119 286 406
Clearance fees 4 394 825 4 190 466
Sealing fees 866 704 -
Sealin fines 268 410 -
Total 145 414 584 123 476 872
7 Main balance
Amount held in:
Main RTGS 39 354 451
Nostro 5 220 394
8 Subsequent Events
8.1 Change of Functional and Reporting Currency
On 20 February 2019, the RBZ Governor announced a new Monetary Policy Statement whose key
highlights were:
• Denomination of RTGS balances, bond notes and coins collectively as RTGS dollars. RTGS
ecome part of the m lti c rrenc s stem
• RTGS Dollars to be used by all entities (including government) and individuals in Zimbabwe
for purposes of pricing of goods and services, record debts, accounting and settlement of
domestic transactions.
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2018 ANNUAL REPORT

• Establishment of an inter-bank foreign exchange market where the exchange rate will be
etermine mar et forces he inter an mar et opene tra in at a rate of S to
S
On the 22nd of February 2019 Statutory Instrument 33 of 2019 (SI33) was published. The Statutory
Instrument gave effect to the introduction of the RTGS Dollar as legal tender and prescribed that “for
accounting and other purposes” certain assets and liabilities on the effective date would be deemed
to be RTGS dollars at a rate of 1:1 to the USD and would become opening RTGS Dollar values from
the effective date.
espite intro ction of the S this is the irectors ha e assesse an concl e that this e
disclosed as a non-adjusting subsequent event.
The impact on the 2018 Receipts and Disbursements Return (based on the assumption that foreign
currency will be obtained on the interbank market and not any other market) of applying different
exchange rates is shown on the table below.
Management performed a sensitivity analysis of the effect of using different exchange rates following
the chan e in f nctional c rrenc from S to S a le elo ill strates the ifferent scenarios
ase on S e chan e rates t inception of S the alance is con erte to S from
USD at 1:1, there after the interbank rate is applied.
Monetary
Monetary Assets/ Non- Monetary Total Total Total
Assets/ Total USD
Element Liabilities Nostro Assets/ RTGS $ @ RTGS $ RTGS @
Liabilities RTGS :
FCA USD Liabilities USD : : :
Dollar
Investment 863
- 863 864 - 863 864 863 864 863 864
bank balance 864
Cash and bank

5 220 394 39 354 451 - 43 710 983 52 405 436 55 015 633 66 719 756
balances
Key assumptions
The following assumptions were made in arriving at the sensitivity analysis:
he e chan e rates se are the official rates at polic chan e ate e r ar at the ate
of finalisin the financial statements a an the thir is a forecast of the e chan e rate in
the future
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Z IM B A B W E R E V E N U E A U T H O R IT Y
O U T S T A N D IN G R E V E N U E R E T U R N
a s a t D e ce m b e r 3 1 , 2 0 1 8
R E V E N U E H E A D O U T S T A N D IN G A M O U N T
31/ 12/ 2018 31/ 12/ 2017
N ote U S $ U S $
A T M L e v y 1 8 4 3 3 2 9 1 0 7 9 1 5
C a p ita l g a in s ta x ( C G T ) 4 1 6 4 3 0 3 1 1 8 8 8 2 5 4 8
C a p ita l g a in s w ith h o ld in g ta x 8 2 1 9 7 1 1 0 5 9 7 4 8
C a rb o n ta x 2 9 2 3 8 4 3 6 6 0 0 7
C u s to m s d u ty 6 9 2 6 4 5 0 3 2 9 0 4 6 6 3 9
E x c is e d u ty 1 4 9 7 1 3 6 7 2 0 2 9 5 3 9 2
N o n - e x e c u tiv e d ir e c to r s fe e s 6 3 5 6 3 8 1 7 0 5 7 8 5 8
N o n - r e s id e n c e s h a r e h o ld e r ta x 5 0 3 1 4 3 2 2 5 5 1 5 0
N o n - r e s id e n c e ta x o n fe e s 6 4 8 9 9 7 9 0 6 4 2 5 2 1 3 9
N o n - r e s id e n t ta x o n In tr e s t 1 2 4 9 0 9 2 1 3
N o n - r e s id e n t ta x o n r e m itta n c e 5 2 9 6 9 4 8 5 3 7 4 1 4 1
N o n - r e s id e n t ta x o n r o y a ltie s 2 0 3 6 0 0 4 1 3 4 0 1 2 8
S p e c ia l e x c is e 1 0 4 4 5 2 5 6 9
R e s id e n t s h a r e h o ld e r s ta x 4 7 2 4 7 4 4 2 7 1 0 5 5 0
R e s id e n t ta x o n in tr e s t 4 4 2 9 0 7 1 3 3 0 3 5 2 7 4
In c o m e ta x c o m p a n ie s 1 8 7 0 7 9 7 4 9 1 1 3 3 3 2 7 3 8 5 0
In te r m e d ia te m o n e y tr a n s fe r ta x 2 6 4 5 9 7 2 1 1 6 7 2 4 8
N o c z im le v y 4 1 6 4 1 5 2 9 1 1 9 5
C le a r a n c e fe e s 7 0 4 1 0
O th e r 9 9 5 0 1 9 7 9 3 3 7 1 7 0
D e m u tu a lis a tio n le v y 1 0 5 9 0
P a y a s y o u e a rn (P A Y E ) 1 0 2 8 3 0 6 1 8 4 8 6 7 1 4 2 5 1 5
P e n a lty 3 2 3 6 8 5 4 4 4 7 0 9 8 9
P r e s u m p tiv e ta x 5 6 1 8 8 0 3 5 3 0 7 3 4 7
R o y a ltie s o n m in e r a ls 6 2 4 6 0 0 9 5 5 9 2 1 9 0 0 5
S ta m p d u tie s 2 0 6 8 3 9 3 9 1 7 0 9 4 8 2 2
S ta te w a re h o u s e re n t 1 1 2 3 2 7 3 1 2 9 4 3 1 7
S u rta x 1 2 5 1 1 2 7 8 9 0 9 2 0
P e n s io n d ir e c tiv e s 1 8 9 0 3 0 2 9 1 1 6 6 8 7 6
T o b a c c o le v y 2 3 6 7 8 0 6 -
F in e s 7 2 7 5 1 1 3 0 9 9 1
V A T 1 5 4 3 1 6 4 5 7 9 1 3 4 8 8 7 6 8 0 6
V A T w ith h o ld in g ta x 1 3 6 7 4 4 4 5 1 0 6 5 3 1 8 5
V a t o n im p o r ts s e r v ic e s 7 4 3 0 5 3 2 4 0 1 7 6 7 6
V A T o n im p o r ts 1 3 2 3 4 5 3 0 1 2 6 9 0 1 8 4
W ith h o ld in g ta x o n te n d e r s 1 7 1 7 1 6 7 5 8 1 1 5 0 1 5 8 1 8
W ith h o ld in g ta x n o n r e s id e n t T a x 7 6 5 1 2 5 5 1 6 3 5 3
T O T A L 4 .3 5 038 575 840 3 956 353 039
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2019.
P . M w a sh i t a ,
Director Fin, A dmin & I nf rastru ctu re
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2019.
F . M a za n i ,
Commissioner General.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2019.
C . Jo ko n ya ,
Board Chairperson.
102
2018 ANNUAL REPORT

ACCOUNTING POLICIES AND NOTES TO THE OUTSTANDING REVENUE RETURN
beyond.
The Outstanding Revenue Return for the year ended December 31, 2018, has been prepared in
accordance with the Revenue Authority Act [Chapter 23:11] and the Public Finance Management Act
[Chapter 22:19].
The Outstanding Revenue Return was prepared based on historical records of assessed tax and
audit of tax returns.
This return is presented in the United States Dollar (USD) which is the reporting currency. All the
financial information presente has een ro n e to the nearest ollar
On 20 February 2019, through the Monetary Policy statement, the Reserve Bank announced the
intro ction of the S as an official electronic c rrenc an to e s se entl a opte as the
functional and reporting currency for Zimbabwe effective February 25, 2019. This change means that
in the reportin c rrenc for this ret rn ill chan e to the S all forei n c rrencies ill e
con erte at the spot rate to S
The Outstanding Revenue Return was prepared based upon accounting policies which have been
consistently applied and which are supported by the reasonable judgments of estimates.
3.1. Taxes revenue
3.2. Domestic taxes outstanding revenue
Domestic taxes outstanding revenue is calculated based on the due dates for the various tax heads.
This outstanding revenue excludes revenue that may subsequently be established through tax audit
assessments.
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2018 ANNUAL REPORT

3.3. Customs and excise outstanding revenue
Customs and excise outstanding revenue is calculated based on customs duty on cleared bills of
entry and excludes bills of entry for Removal in Transit (RITs) and any duty from Temporary Import
Permits (TIPs) which may have been liable for duty.
4. Reconciliation of 2018 Outstanding Revenue
4.1 Domestic taxes outstanding revenue
2018 2017
US$ US$
Opening debt balance at January1, 2018 3 878 892 532 2 745 479 486
Less : Receipts for amounts owing
(Collections in 2018) (301 838 663) -
Sub Total old debt as at December 31, 2018 3 577 053 869 2 745 479 486
Add: Assessments for current year 1 490 969 407 1 491 731 022
Less: Receipts for assessments raised
in current year (143 562 338) (358 317 976)

Closing debt balance as at 31st December 4 924 460 938 3 878 892 532
4.2 Customs outstanding revenue
2018 2017
US$ US$
Opening debt balance 77 460 507 75 680 106
Less : Receipts for amounts owing (collections) (15 002 419) -
Sub Total old debt 62 458 088 75 680 106
Add: Assessments for current year 82 002 330 22 565 591
Less: Receipts for assessments raised in current year (30 345 517) (20 785 190)
Closing debt balance as at 31st December 114 114 901 77 460 507
4.3 Debt grand total 5 083 575 840 3 956 363 039
4.4 Removal in Transit (RIT) not yet acquitted

December 31, December 31,
2018 2017
US$ US$
Opening RITs 40 200 187 19,800,102
Recovery during the year 32 727 438 10 367 126

Collections 1 822 382 90 281
Cancellations 8 018 203 3 107 833
Acquittals 22 886 853 7 169 013
Additions 6 447 111 30 767 211

Closing balance 13 919 861 40 200 187
he total emo al in transit not et ac itte as at ecem er amo nte to
104
2018 ANNUAL REPORT

4.6 Amounts held by entities under liquidation and judicial management
INTERFIN 1 709 391
METBANK 4 899 050
TETRAD 1 849 796
GRAND TOTAL 8 458 237
5. Subsequent Events
5.1 Change of Functional and Reporting Currency
On 20 February 2019, the RBZ Governor announced a new MPS whose key highlights were:
• Denomination of RTGS balances, bond notes and coins collectively as RTGS dollars. RTGS
ecome part of the m lti c rrenc s stem
• RTGS Dollars to be used by all entities (including government) and individuals in Zimbabwe
for purposes of pricing of goods and services, record debts, accounting and settlement of
domestic transactions.
• Establishment of an inter-bank foreign exchange market where the exchange rate will be
etermine mar et forces he inter an mar et opene tra in at a rate of S to
S
On the 22nd of February 2019 Statutory Instrument 33 of 2019 (SI33) was published. The Statutory
Instrument gave effect to the introduction of the RTGS Dollar as legal tender and prescribed that “for
accounting and other purposes” certain assets and liabilities on the effective date would be deemed
to be RTGS dollars at a rate of 1:1 to the USD and would become opening RTGS Dollar values from
the effective date.
espite ntro ction of the S this is the irectors ha e assesse an concl e that this e
disclosed as a non-adjusting subsequent event.
The impact on the 2018 Receipts and Disbursements Return (based on the assumption that foreign
currency will be obtained on the interbank market and not any other market) of applying different
exchange rates is shown below.
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2018 ANNUAL REPORT

Management performed a sensitivity analysis of the effect of using different exchange rates following
the chan e in f nctional c rrenc from S to S a le elo ill strates the ifferent scenarios
ase on S e chan e rates t inception of S the e t alance is con erte to S
from USD at 1:1, there after the interbank rate is applied.

Element Monetary Monetary Non- Total USD @ otal S otal S Total RTGS
Assets/ Assets/Liabilities Monetary 1:1 @ 1:2.5 @1:3 @ 1:5.242
RTGS Dollar Assets/
Liabilities
Nostro FCA Liabilities
USD USD
Outstanding
Revenue
(Revenue - 5 038 575 840 - 5 038 575 840 5 038 575 840 5 038 575 840 5 038 575 840
Debt)
Key assumptions
The following assumptions were made in arriving at the sensitivity analysis:
he e chan e rates se are the official rates at polic chan e ate e r ar at the ate
of finalisin the financial statements a an the thir is a forecast of the e chan e rate in
the future.
106
2018 ANNUAL REPORT

107
2018 ANNUAL REPORT

108
2018 ANNUAL REPORT

109
2018 ANNUAL REPORT

TAX RESERVE CERTIFICATES RETURN
as at December 31, 2018
REVENUE HEAD TAX RESERVES TAX RESERVES

31/12/2018 31/12/2018
S S
al e of certificates not con erte - -

Add sales from January to December - -
Less conversions from January to December - -
Balance at year end - -
Total - -
____________________, 2019.
P. Mwashita
(Director Fin, Corp Planning & Modernization)
____________________, 2019.
F. MAZANI
____________________, 2019.
C. Jokonya
(Board Chairperson)
110
2018 ANNUAL REPORT

NOTES TO THE TAX RESERVE CERTIFICATES RETURN
The Zimbabwe Revenue Authority (ZIMRA) started operations on September 1, 2001 and is consti-
tuted in terms of the Revenue Authority Act [Chapter 23:11] of 1999. Its core business is the collection
of revenue for the Government of Zimbabwe, administration of tax laws and the facilitation of trade
and economic development in the region and beyond.
he a eser e ertificates et rn for the ear en e ecem er has een prepare in

accor ance ith the e en e thorit ct hapter a eser e ertificates ct hapter
23:10] and Public Finance Management Act [Chapter 22:19].
he a eser e ertificate et rn as prepare ase on the stat tor recor s that are maintaine
under the historical cost basis.
This return is presented in the United States Dollar (USD) which is the reporting currency.
he a eser e ertificate et rn as prepare ase pon acco ntin policies hich ha e een
consistently applied from the preceding years.
3.1. Taxes revenue
All tax revenue collected by the Zimbabwe Revenue Authority is accounted for on a cash basis as
receipted.
3.2. Tax Reserves
Tax reserves are amounts which have been prepaid by clients in relation to tax reserves granted by
the Commissioner General and are paid into the Consolidated Revenue Fund.
111
2018 ANNUAL REPORT

8. Clients Charter
8.1 Core Values
Our core values are Integrity, Transparency and Fairness.
8.2 Service Delivery
We commit ourselves to meeting the following minimum standards in our service delivery:
• Answer the telephone promptly and courteously.
• Acknowledge all correspondence within 48 hours and respond in 14 working days.
• All objections will be determined and the decision communicated to clients within 60 days from the
date of receipt of the letter of objection.
• All members of the public who call at our inland offices will be attended to within 15 minutes of arrival.
• Upon meeting requirements for VAT or PAYE, clients will be registered within one working day.
• Upon meeting requirements for Customs, commercial consignments will be cleared within three
working hours from the submission of correct and complete documentation unless selected for physical
examination.
• Income Tax assessments will be issued within three months from the date the correct return is submitted.
• All passengers on a flight will be cleared within two hours.
• A bus load with bona-fide travellers will be cleared within an hour.
• Physical examination of road, air and containerised cargo will be done within 48 hours.
8.3 ZIMRA’s Obligations to Clients
• We are accountable to the nation of Zimbabwe.
• We shall conduct our business within the confines of the Law.
• We do not tolerate smuggling, tax evasion, corruption, favouritism and discrimination.
• We are here to serve you and we are open to your suggestions, criticisms and advice.
• We shall carry out our duties professionally, diligently and courteously.
• We shall clearly explain the procedure and your rights should you be required to undergo a physical
search.
• We promise to handle your information with strict confidence and to maintain your privacy.
• We are committed to minimising your compliance costs.
• We shall carry or wear the proper identification at all times as we carry out our duties.
112
2018 ANNUAL REPORT

8.4 Information
We are committed to providing proactive client education, which includes:
• Making relevant information available to clients, orally and in the print/electronic media as well as on
our website (www.zimra.co.zw).
• Making available pamphlets, posters and relevant material.
• Access to a Client Care staff member at any station.
8.5 Client’s Obligations
In return, the Zimbabwe Revenue Authority requires you to comply with all relevant laws, by providing
accurate and complete information. More specifically:
• To treat our staff fairly and with courtesy.
• To submit statutory returns and make payments due within the required time.
• To be open and honest in providing any additional information that may be requested.
• To be fully co-operative in all business dealings with the Zimbabwe Revenue Authority.
• To report and refrain from corrupt tendencies in all dealings with the Zimbabwe Revenue Authority.
• To ensure that you have accurately completed all the necessary forms before departure from or arrival
into Zimbabwe.
• To be aware that all travellers, baggage or cargo are subject to physical examinations.
• To use the services of a licensed clearing agent if you are importing or exporting commercial cargo.
The list of licensed clearing agents can be accessed on our website (www.zimra.co.zw).
113
2018 ANNUAL REPORT

Notes
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Notes
115
2018 ANNUAL REPORT

Notes
116
2018 ANNUAL REPORT

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2018 ANNUAL REPORT

2018 ANNUAL REPORT

AEO Authorised Economic Operator OSBP One Stop Border Post

2018 ANNUAL REPORT

Foreign currency shortages persisted throughout the

2018 ANNUAL REPORT

The previous Board’s term was terminated on 1

The following executive management appointments

• Mr Nesbert Mutsaka was appointed Director

2018 ANNUAL REPORT

Thank you and God bless you.

2018 ANNUAL REPORT

• Realised the need to transform and reform the

This thrust was achieved across the Authority through

2018 ANNUAL REPORT

Operational Efficiency Thank you.

2018 ANNUAL REPORT

Happias Kuzvinzwa Rameck Masaire Charles Jaure

2018 ANNUAL REPORT

John Chakasikwa T apiwa Many ika

2018 ANNUAL REPORT

Table 1: Revenue Generation

Table 2: Trade Facilitation

Table 3: Supportive Legislation and Advice

Table 4: Operational Efficiency

2018 ANNUAL REPORT

Ensure 100% adherence to good 85%. Evaluation was conducted as at 30 September

Table 6: Sufficient Resources

2018 ANNUAL REPORT

1.1 Economic Overview

1.2 Revenue Performance

2018 ANNUAL REPORT

2 0 1 8 Annual Collec tions v s Targ ets

I nterm ediate Money

Figure 1 below shows a comparison of performance for 2017 and 2018.

Figure 1: 2017/2018 Revenue Comparison

2018 ANNUAL REPORT

Monthly Actual Collections and Variances for 2017 and 2018

Figure 3: 2017 & 2018 Monthly Actual collections

ANALYSIS OF THE SPECIFIC REVENUE HEADS’ PERFORMANCE

2017 and 2018 Annual Net Revenue Collections Comparison

2018 ANNUAL REPORT

Annual growth rates by Tax Head

Figure 5: Annual Growth Rates by Tax Head

Performance of each tax head is as below;

2018 ANNUAL REPORT

Corporate Income Tax (Company Tax)

VAT on Local Sales

2018 ANNUAL REPORT

Withholding Tax on Contracts

Intermediate Money Transfer Tax

Dividends, Fees, Interest and Remittances

2018 ANNUAL REPORT

1.3 Growing Tax Base

1.4 Tax Management

1.4.1. Tax Reforms

2018 ANNUAL REPORT

2018 ANNUAL REPORT