A ZIMRA audit notice is stressful, but a calm, organised first week usually decides how the audit ends. Here is what to do, day by day.
A notice from ZIMRA does not mean you have done something wrong. Audits are triggered by risk profiling, industry reviews, refund claims and data mismatches as often as by suspicion. What matters is how you respond in the first week.
Day 1: Read the notice carefully
Note which tax types are covered — income tax, VAT, PAYE or all of them — which periods are under review, what documents are requested, and the response deadline. A desk review, a verification and a full field audit carry different demands, so establish which one you are facing.
Day 2: Appoint one point of contact
Route every communication through one person, and involve your accountant or tax adviser immediately. Inconsistent answers from different staff members create avoidable problems.
Day 3: Secure your records
Do not delete, alter or “tidy” anything. Collect the returns filed for the periods in question, general ledgers, bank statements, sales and purchase invoices, payroll records, contracts and import documents.
Days 4 and 5: Reconcile before ZIMRA does
Test your own position first:
- Do VAT returns agree to the ledger and to invoices?
- Does PAYE remitted agree to payroll?
- Does declared income agree to bank deposits?
- If you trade in USD and ZiG, are conversions documented and consistent?
Differences are common and often have innocent explanations, but only if you can show them.
Day 6: Quantify your exposure
If the reconciliation reveals errors, work out the tax, penalties and interest involved. Where the error is yours, discuss with your adviser whether a voluntary disclosure before the audit progresses is the better route.
Day 7: Respond in writing
Send a clear, indexed response covering exactly what was requested, no more and no less. If you need more time, request an extension in writing before the deadline, not after. Keep a log of every call, meeting and document submitted.
A few things not to do
- Do not ignore the notice or miss the deadline.
- Do not submit unreviewed documents, or verbal explanations you cannot support.
- Do not backdate or create records after the fact.
- Do not pay an assessment without understanding it. Objection and appeal rights carry strict time limits.
Topics
General guidance only
This article describes how the rules are structured. It is not advice on your circumstances, and tax legislation in Zimbabwe changes regularly. Speak to us — or to another qualified adviser — before acting on anything here.