With the full rollout of the Tax and Revenue Management System (TaRMS) set for 1st October 2024, Zimbabwe is on the brink of a significant shift in tax compliance. This advanced system aims to streamline tax processes and increase ZIMRA’s oversight capabilities, leaving businesses with little room for error. It is crucial for organisations to understand the implications of TaRMS and take immediate steps to ensure compliance, or risk severe penalties.
TaRMS introduces unprecedented integration across government databases, including the National Social Security Authority, Reserve Bank of Zimbabwe and the Registrar of Companies. This integration grants ZIMRA a comprehensive view of taxpayer activities, significantly heightening the risk of audits. Businesses can expect not only an increase in the frequency of audits but also a greater depth of investigation. ZIMRA’s ability to automatically detect unpaid liabilities, calculate penalties and issue reminders will enhance their enforcement capabilities, making it vital for businesses to ensure tax affairs are in accurate order.
Zimbabwe is joining a global trend of revenue authorities adopting sophisticated digital tax systems to enhance tax collection and detect evasion. TaRMS’ integration with key agencies ensures that tax liabilities are captured more comprehensively. Without proper alignment with this new system, businesses risk discrepancies, missed deadlines and severe penalties that could lead to financial distress. Ignoring these changes could result in operational disruptions and loss of competitive advantage, especially as the system’s reach and accuracy will exceed any previous measures.
To navigate this transition successfully, businesses must embrace digital transformation. TaRMS will streamline areas like tax return management, payments, refunds and debt management, but it also demands a higher level of accuracy and compliance. This means eliminating duplication of taxpayer information and ensuring real-time reporting. However, adapting to the complexities of this system may prove challenging without expert guidance.
ZIMRA’s expanded capacity for oversight means that non-compliance will be swiftly detected and penalised. From taxpayer registration to payment management, aligning your systems with TaRMS is no longer optional but a necessity. Given the enhanced risk and compliance focus of TaRMS, seeking expert consultation is not just advisable, it is imperative. With ZIMRA’s increased auditing capacity, having accurate and up-to-date records is essential to avoid costly penalties and lengthy audits.
TaRMS is set to revolutionise Zimbabwe’s tax landscape, offering advantages for businesses that are prepared but posing significant risks for those that are not. The enhanced ability of ZIMRA to audit and scrutinise taxpayers calls for the need for immediate action. As the October 1st deadline approaches for TaRMS Release 3, businesses must act swiftly.