The Zimbabwe Revenue Authority (ZIMRA), through the Commissioner-General, administers the Income Tax Act [Chapter 23:06] (hereinafter referred to as “the Act”). Among its duties, ZIMRA assesses, collects, and enforces tax obligations on individuals, partnerships, companies, and other taxable entities. While ZIMRA has wide powers to issue assessments, taxpayers equally have statutory rights to challenge such assessments where they believe they are incorrect or unjustified. This article provides a detailed step-by-step guide for taxpayers in Zimbabwe seeking to challenge a ZIMRA tax assessment.
Understanding Tax Assessments under the Act
Under section 37 of the Act, taxpayers are required to submit accurate tax returns within the time specified in the Commissioner’s annual public notice, usually published in the Government Gazette and local newspapers. Upon receipt of a return, the Commissioner assesses the taxpayer’s liability and issues a notice of assessment indicating the amount payable. Assessments may also be issued where no return is filed, in the form of estimated assessments under section 45, based on available information or the Commissioner’s reasonable belief of income earned.
Assessments can take various forms, including original assessments, additional assessments (section 47), reduced assessments (section 48), and amended assessments of loss (section 49). The law also empowers ZIMRA to impose penalties and additional tax in cases of default, omission, or misrepresentation (section 46).
Right to Object – First Step in Challenging an Assessment
The formal process for challenging an assessment begins with an objection in terms of section 62 of the Act. An objection must be:
- Lodged within 30 days from the date of the notice of assessment (an extension may be granted upon showing reasonable grounds for delay).
- Made in writing, addressed to the Commissioner.
- Detailed in its grounds, specifying the exact aspects of the assessment being disputed.
Upon receiving the objection, the Commissioner may:
- Reduce or alter the assessment, issuing a reduced assessment if necessary; or
- Disallow the objection and communicate this decision to the taxpayer in writing.
It is important to note that under section 63, the burden of proof rests with the taxpayer. This means the taxpayer must provide sufficient evidence and legal argument to support their claim of exemption, deduction, or non-liability.
Appealing the Commissioner’s Decision
If dissatisfied with the Commissioner’s decision on an objection, the taxpayer may proceed to appeal. Under section 65, appeals can be made either to:
- The High Court, or
- The Special Court for Income Tax Appeals established under section 64.
The taxpayer must lodge a written notice of appeal with the Commissioner within 21 days of receiving the objection decision, specifying the chosen court. At the hearing, arguments are confined to the grounds stated in the original objection unless the court grants permission to introduce new grounds.
The Special Court Process
The Special Court is presided over by a President who must be a qualified judge or a person eligible for appointment as a judge of the Supreme or High Court. The 12th Schedule to the Act outlines the appeal procedure:
- Within 60 days of giving notice to appeal, the taxpayer must submit an appellant’s case, detailing material facts, legal contentions, and supporting documentation.
- If the Commissioner agrees with the facts, an agreed case is prepared and sent to the Special Court within 14 days.
- If there is disagreement, the Commissioner shall prepare a commissioner’s case, within sixty days of the receipt of the appellant’s case and lodge with the taxpayer a statement setting out which of the allegations he admits as correct and which he denies.
- The Special Court then sets a hearing date, at least 30 days from receipt of the case documents.
Appeals to the Supreme Court
In limited circumstances, a taxpayer may appeal to the Supreme Court under section 66. Such appeals are permitted where the matter involves:
- A question of law alone,
- A question of fact alone, or
- A mixed question of law and fact.
The Supreme Court’s decision is final.
Practical Considerations for Taxpayers
While the Act allows taxpayers to represent themselves, given the complexity of tax law and the technical nature of ZIMRA’s assessments, it is advisable to engage a qualified tax practitioner or legal counsel. Professional assistance can ensure that objections and appeals are properly framed, supported by evidence, and compliant with procedural rules.
Taxpayers should also maintain complete and accurate records, as the Commissioner has wide powers under section 40 to access public records and under section 60 to demand information relevant to tax matters. Poor record-keeping often weakens a taxpayer’s ability to meet the burden of proof.
Conclusion
Challenging a ZIMRA tax assessment is a structured legal process governed by the Income Tax Act [Chapter 23:06]. The law provides taxpayers with clear rights to object and appeal against assessments, but strict timeframes and procedural requirements must be followed. From filing a timely objection to presenting a persuasive case before the Special Court or High Court, success depends on a combination of legal knowledge, procedural compliance, and strong evidentiary support. Ultimately, vigilance in compliance and readiness to assert one’s rights are the best defences against unjust or erroneous tax assessments.