Zim News Blog -NEWS NETWORK

President Emmerson Mnangagwa moved to disband Zanu PF structures in Harare and Bulawayo after growing concerns that Vice-President Constantino Chiwenga’s growing influence was creating two centres of power. According to insiders, a faction linked to the military, with Chiwenga alleged to be its godfather in Zanu PF’s civilian structures, was now running the show in the ruling party, much to

MDC leader Nelson Chamisa says he is ready to step down if he loses the party’s internal polls scheduled for May this year, the Daily News on Sunday can report. Chamisa – who assumed the reins of the country’s largest opposition party in February last year, albeit under controversial circumstances – faces a challenge from the MDC’s secretary-general, Douglas Mwonzora. Mwonzora, who beat Chamisa

The airline's boss at the crash site An Ethiopian Airlines jet has crashed shortly after take-off from Addis Ababa, killing all on board. The airline said 149 passengers and eight crew members were believed to be on flight ET302 from the Ethiopian capital to Nairobi in Kenya. It said 32 Kenyans, 18 Canadians, eight Americans and seven British nationals were among the passengers. The

Source: Tax issues of medical claims | Daily News

Sickness has no respect of affluence and it befalls us all. At a given point in time, we may not all be in a position to cover the medical bills associated with such sickness and to guard against that some may decide to take medical insurance.

Whenever one visits the doctor, a claim form is completed by the health service provider (HSP) for an onward refund by the medical insurer.

Developments in the country however, make the HSPs having to wait for a long period spanning into more than 12 months in some cases.

What is brought to the fore is the issue of when such long outstanding claims would be reported for income tax purposes.

This is an issue of contention that needs to be ironed out to avoid situations whereby the taxpayer or the taxman tend to lose out on tax savings or tax revenue respectively due to ignorance or failure to understand the treatment of these medical claims.

The purpose of the article therefore is to clarify the issue in respect of how medical claims are treated for income tax purposes.

At what point are claims recognised as income?

Income is brought to tax when it is received or when it accrues, whichever occurs first.

In reference to the phrase “accrues” the law has stated that income accrues when a taxpayer becomes entitled to it.

An accrual is distinguished from a receipt because it is based on a taxpayer becoming entitled to an amount.

A medical service provider becomes entitled to payment upon performance of services or supply of goods and normally this is signified by an invoice which is an amount which is non-contestable.

A non-contestable invoice is an invoice which is complete in respect of quantity supplied and the price of the supply and there are no conditions attached whatsoever as to the service provided and the amount to be charged.

The fact that an amount is long outstanding or is paid in installments is not a condition precedent.

Coming back to the definition of an invoice, an invoice is a document instructing the other party to make payment for goods or services supplied.

It can therefore be argued that a medical aid claim form is an invoice.

The medical fraternity provides for the Association of Health Funders of Zimbabwe (AHFoZ) rates on medical aid claims and these are well known within the medical fraternity.

This means the conditions precedent are satisfied at the point of completing the claim. Hence the moment a claim is completed by the patient, the HSP becomes liable to pay tax on income accruing under the claim notwithstanding the money will be recovered from a medical aid society at a later date.

The Medical and Dental Practitioners Council of Zimbabwe sets a tariff to be charged on any procedure performed by a medical and dental practitioner.

If the tariff exceeds the amount set by the AFHoZ rates for a medical procedure the excess will be paid by the patient.

This therefore buttresses the fact that a medical aid claim form suffices as an invoice for the payment of claims made by a medical service provider.

Tax in respect of waiver of right to receive payment

The fact that the taxpayer has waived the right to receive the payment or will receive the amount in instalments does not defer the tax point.

In other words the condition of payment cannot postpone point of accrual. Watermeyer J in the case of Lategan whilst stressing this point had this to say “… He has not become entitled to a right to claim payment in the year of assessment, but he has acquired a right to claim payment of the debt in future. This right has vested in him, has accrued to him in the year of assessment, and it is a valuable right which he could turn into money if he wishes to do so”.

This therefore means that, so long as the taxpayer becomes entitled to income, then the income has to be declared in the year of assessment. Any postponement of declaration of such income would be a violation of the tax laws.

HSPs cannot avoid income tax on long outstanding claims.

However, in the event that the claims become bad debts, these can be claimed as expenses to the extent that they are proved to the commissioner to be irrecoverable.

This is a contentious matter requiring a separate article.

HSPs are found in a fix to declare income for tax purposes and pay taxes on amounts not yet received, on the basis of their accrual.

In the event that the HSP omits the income in his/her return and the error is picked by the Zimbabwe Revenue Authority (Zimra) he/she may face stiff penalty measures.

The revenue authority may raise an assessment in terms of the law for the understated income and request the HSP to settle the understated tax plus additional tax of 100 percent and interest at 10 percent per annum on the understated tax.

The HSP should therefore take into account outstanding claims in their returns to avoid the penalties. If you do not have the money to pay you should agree on a payment plan with Zimra to avoid the penal measures.

Meanwhile Matrix Tax School will be hosting its 2019 Victoria Falls Tax Conference from May 22 to 25, 2019.

Also join us on our 2019 VAT Seminar on the March 21, 2019 at Meikles Hotel to obtain an in-depth understanding of VAT rules.

n Tapera is the Founder of Tax Matrix (Pvt) Ltd and the CEO of Matrix Tax School (Pvt) Ltd. He writes in his personal capacity.

The post Tax issues of medical claims appeared first on Zimbabwe Situation.

Source: Munemo hero status irks activists | The Standard (Local News)

By NQOBANI NDLOVU

President Emmerson Mnangagwa’s government has come under fire from Matabeleland activists for declaring the late Emilio Munemo a national hero despite his links to the Fifth Brigade, which is blamed for the deaths of over 20 000 people soon after independence.

Munemo (64), a brigadier general, died last Sunday and was buried at the National Heroes Acre yesterday.

At the time of his death he was director general of civil military relations in the Zimbabwe Defence Forces.

Former president Robert Mugabe deployed the North Korean-trained army unit in the Midlands and Matabeleland province to fight the so-called dissidents, but researchers say it was a plot to crush support for the late vice-president Joshua Nkomo and his Zapu party.

According to an interview with a researcher, Munemo, who was one of the top Fifth Brigade commanders, said the soldiers targeted Ndebele speakers for torture and even for killings.

Activists said honouring Munemo showed that Mnangagwa’s government was insensitive and did not care about the victims of Gukurahundi.

“This is a slap in the face of thousands of his victims. Zanu PF has the audacity to send Kembo Mohadi, himself a former Zipra/Zapu cadre, to deliver the shocking message that Munemo is a national hero,” said Artwell Sibanda, the spokesperson for United Movement for Development Party led by former speaker of Parliament Lovemore Moyo.

Zapu supporters and members of Zipra — a military wing of the party during the war — bore the brunt of the brutal crackdown by the Fifth Brigade.

“The harrowing acts of unchecked barbarism and pillage cannot be rewarded with a hero status,” Sibanda added.

Munemo commanded one of the Fifth Brigade battalions and was later promoted from battalion commander to deputy commander before he later became commander of the Fifth Brigade, succeeding former Airforce commander and current Agriculture minister Perance Shiri.

“The hero status is a monumental and evil insult on the collective conscience of Zimbabweans and another clear indication that this government is not committed to national healing and reconciliation,” commented analyst Effie Ncube.

“This government proudly trafficks in corruption, hate, genocide and crimes against humanity.

“Honouring corrupt officials who destroy the country has become a culture of the leadership of the Zimbabwe.”

The Mthwakazi Republic Party (MRP) that has been vocal about Gukurahundi weighed in saying “honouring Munemo is an entrenchment and confirmation of Gukurahundi as a government ideology”.

“What hero status when the people of Matabeleland are still searching for answers and justice for his actions? It is a shame and contradiction to logic, having him to share the same honour with such men like Joshua Nkomo,” said Njabulo Ngwenya, the party’s spokesperson.

Mnangagwa has faced protests from activists and Gukurahundi victims in Pretoria, South Africa, and at the Zimbabwe International Trade Fair in Bulawayo in 2017 over his lack of action in dealing with the emotive issue.

Last year while in Davos, Switzerland, for the World Economic Forum, Mnangagwa was questioned over his role during Gukurahundi, and whether he was prepared to apologise.

He did not apologise, but has indicated that he is prepared to apologise if recommended by the National Peace and Reconciliation Commission.

“Victims want redress yet perpetrators are awarded and made heroes. It is contradicting the spirit of reconciliation,” commented Ekem Moyo, the chairperson of the Concerned Freedom Fighters group.

Gwanda-based commentator Bekezela Maduma Fuzwayo said Munemo’s hero status showed that the government did not regret the Gukurahundi atrocities.

“It just goes to show that Mnangagwa is far from regretting Gukurahundi and he keeps rewarding Gukurahundi perpetrators with heroism,” he said.

“It’s more saddening that Mnangagwa even showers him with praises and says his ‘good deeds have followed him’.

“This kind of behaviour never erases Gukurahundi anger in the people of Matabeleland.”

Mnangagwa showered praises on the late general in his condolence message to the Munemo family.

“This is testimony that Zanu PF isn’t worried about Gukurahundi victims who are still reeling in poverty and lack official documents like birth certificates and national registration cards,” said Felix Magalela Mafa-Sibanda, the chairperson of the Post-Independence Survivors Trust that represents Gukurahundi victims.

Matabeleland chiefs have also upped pressure on government to address the emotive issue, forcing an angry reaction from government.

In January, Chiefs Vezi Maduna and Felix Nhlanhlayamangwe Khayisa Ndiweni wrote to the South African parliament requesting permission to be allowed to present “facts” about the 1980s mass killings in Matabeleland and Midlands to lobby the regional powerhouse to push for an independent investigation into the atrocities.

In November 2018, they petitioned the United Nations seeking the setting-up of an independent inquiry into the Gukurahundi massacres, attracting an angry government response.

Mbuso Fuzwayo, the coordinator of pressure group Ibhetshu LikaZulu, said the passing away of commanders of the Fifth Brigade was regrettable but defeats the efforts of truth-telling as “perpetrators take the truth to their graves”.

“Ibhetshu is concerned that the lack of urgency to address the Gukurahundi genocide will deny the nation the entire truth from those that implemented this callous act thus, deprive the nation of true healing,” Fuzwayo said, adding: “Any delay in addressing this is an act of selfishness and will deny this country proper and true integration.”

The post Munemo hero status irks activists appeared first on The Standard.

The post Munemo hero status irks activists appeared first on Zimbabwe Situation.