In this digital age, it’s now possible to prepare and file Tax Returns electronically; however, the physical filing continues to be popular among most Tax authorities including ZRA. Therefore to avoid Tax problems and disputes with ZRA, here are the Tax preparation tips you must keep in mind when preparing your Taxes.
Always use the correct Taxpayer Identification number (TPIN)
Tax payer identification number is a unique thirteen-digit computer generated number allocated to a taxpayer by ZRA. Some Tax filers fill wrong TPIN details and create complications as a result of their carelessness. It might sound simple but make sure you put the right TPIN details on your tax forms.
Avoid the last minute rush 30th September is the deadline.
You might be aware that every person who registers for TPIN is required to register for income tax because the income tax account is the one you use to remit income tax. Don’t wait until the 30th of September; file your ZRA Tax return on time. In fact, you can avoid stress and careless errors that may cause problems with ZRA. Closer to the dead line, ZRA offices are filled with cues of Tax payers waiting to file their returns, timely preparation can reduce the time you spend queuing at ZRA offices. Keep in mind these ZRA due dates
You don’t only have to be a genius to prepare ZRA returns.
ZRA provides detailed instructions on how to complete all official forms on ZRA home page including procedures for making electronic and cheque payments of Tax to ZRA. Therefore, you have an option to either go it alone or use an Accountant. But if the processes seem a little confusing from the start, I would advise hiring a consultant to avoid serious problems with ZRA.
Don’t try Tax avoidance schemes you don’t fully understand.
I know you must have heard of this term “Tax Avoidance”, this is simply tax planning to the extent that the affairs of your business are legally arranged in such a way as to minimize the tax liability. Although tax avoidance is “strictly legal” and with the letter of the law, it is in contrary to the spirit of the law.In short, tax avoidance schemes exploit loopholes in the legislation which every tax authority tries to close as soon as the loophole has been identified.Having a clear understanding of your taxes and how they work can save you time and frustration. Taking expert advice can help prepare you for any tax issues that may arise.
Pay your VAT Taxes to ZRA promptly.
In most countries, businesses are required by law to register for Vat if they deal in taxable goods and services and the turnover exceeds the threshold. Submit correct Vat returns and keep good Tax records to avoid problems with ZRA.
Don’t Invade Taxes.
Why invite trouble from ZRA by engaging in Tax invasion? Unlike tax avoidance, tax invasion is the illegal manipulation of the tax system to avoid paying taxes. It is the intentional disregard of legislation in order to escape paying taxes which include falsifying returns and claiming fictitious expenses. Don’t expose yourself by falsifying returns.
State the correct banking details.
ZRA has in the recent past undergone major changes from manual processes of making payments by cheques and cash to electronic payment mechanisms. You must always detail your correct name or business name, Taxpayer identification number (TPIN), tax type (e.g. Customs Duty, Vat, Asycuda, etc),tax period, tax district/port, tax payer ZRA account and the correct amount of tax being paid.
About the Author:
Fixed Asset Consultant at Prosperity Agencies Limited with over 10 years practical experience in physical verification, bar-coding of assets and fixed asset software implementation +260 211 239859
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