TAX LAW & PRACTICE(CUAC 212)

TAX LAW & PRACTICE(CUAC 212)
PROG: BSCAC LEVEL: YEAR :

Food for thought ‘There are only two things which are certain in life; death and taxes’ (Albert Einstein) ‘People often say death and taxes are the same, but this is wrong. Death is a taxable event, but taxes never die’

CUAC 212 COURSE OUTLINE AIM
To develop knowledge and skills with respect to the Zimbabwean tax legislation, processes, procedures and computations and their application in the taxation of individuals, partnerships and companies. MAIN CAPABILITIES After completing this course students should be able to: 1. Explain the meaning of taxation and discuss its importance in the development of the Zimbabwean economy and the standard of living. 2. Outline the general framework for the administration of taxes in Zimbabwe. 3. Apply tax principles in computing the income tax liability of an individual and outline the administration of PAYE and tax on trade and investment income in Zimbabwe. 4. Apply tax principles in computing the corporation tax liability of a company and outline the administration of corporation tax in Zimbabwe. 5. Apply tax principles in computing the capital gains tax liability of an individual and of a company and outline the administration of capital gains tax in Zimbabwe. 6. Apply tax principles in computing Value Added Tax (VAT) payable by or refundable to businesses and outline the administration of VAT in Zimbabwe.

Course Outline continues….
1.Introduction to Taxation in Zimbabwe 2. Gross Income 3. Exemptions 4. Allowable deductions (& prohibited deductions) 5. Tax credits 6. Taxation rules relating to leases, benefit funds and pension funds. 7. Taxation of employment income and income from trade and investment (individuals) 8. Taxation of companies 9. Taxation of farmers and partnerships 10. Capital Gains Tax (CGT) 11. Value Added Tax (VAT). Reference material :2015 tax year Income tax Act, Capital Gains Tax Act, Value Added Tax Act, Finance Act Textbooks by: 1. Sabelo Nare L.W Hill 3. Marvelous Tapera. 4. Patson Nyatanga 5. CIMA, ACCA & CIS Study Texts and notes on Zimbabwean Taxation Tax bulletins from Chartered Accountant Firms e.g Earnest and Young

Introduction to taxation
Chapter 1 Learning outcomes After completing this chapter you should be able to: Define tax and explain the importance of taxation to the Zimbabwean economy and the standard of living in Zimbabwe. Explain the difference between source based and resident based tax systems Discuss the three main ways of classifying taxes. Outline the general framework for the levy and administration of taxes in Zimbabwe

Chapter 1 Learning outcomes After completing this chapter you should be able to: Explain the three sources of tax law in Zimbabwe Define a person, an associate and ordinary residence Discuss the main principles of a good tax system Outline the general framework for determination/calculation of tax payable.

Introduction to Taxation
1.1 What is tax? • Tax is an involuntary/compulsory amount paid by a person to the government to which the person is under its governance. • Tax is collected for the benefit of the government fund, which in Zimbabwe is called the Consolidated Revenue Fund. 1.2 Why are taxes levied? (a) Raising of revenue for the government The major source of income for the state is through taxes. Government spending is financed by taxpayers ‘money. (b) To regulate the economy Government may use taxation as an instrument to drive economic objectives of a country. e.g taxation is used under fiscal policy to withdraw money from the economy. (c) To discourage the consumption of demerit goods Demerit goods are goods that poses health problems to consumers e.g tobacco. As such the government would want to reduce the consumption of such goods by imposing some taxes on such goods.

Why are taxes levied?...continues
(d) To control international trade The aim of the government is to maintain favourable balance of payments. A healthy balance of payment is achieved when a country exports more than it imports. Therefore, a country may seek to reduce imports by imposing taxes on imports (custom duties/ tariffs). (e) To promote economic growth Where imports are reduced, demand for domestic goods will increase thereby promoting the growth of local companies which in turn lead to reduction of unemployment levels. (f) To prevent dumping of goods Dumping is a term that explains a situation where cheaper substandard goods are produced in other countries and exported into the country thereby reducing significantly the demand for local goods. Dumping is a big challenge to the economy as it destroys local industries as their output become uncompetitive. Government may seek to protect local industries by introducing tariffs so as to make the foreign goods expensive compared to local goods.

1.3 Basis of Taxation A country can adopt either a source based (territorial) or a residence based tax approach. A country that adopts source based tax system levy taxes only on income, capital, property etc. that comes from within the boundaries of its borders. A residence based tax approach is adopted by a country that seeks to levy tax on income, capital; property etc. accruing to its residents regardless of its source. Zimbabwe uses a source based tax system.

1.4 Classification of taxes (a) Direct or Indirect taxes Direct taxes are paid by individuals/organisations on which tax is charged. An example of a direct tax is income tax. Indirect tax is charged on one person but actually paid by someone else. The tax is often included in the price of a commodity. Indirect tax simply means that the taxpayer indirectly pays tax to the authority when they pay for a commodity. An example of indirect tax is Value Added Tax(VAT). (b) Progressive, Regressive, and proportional taxes A progressive tax is a levy in a tax system where the tax rate increases as the taxable base increases e.g $100 to $200=20%, $201- $500=25%. An example of a progressive tax is PAYE(Pay As You Earn). It places a heavy tax burden on the rich because it takes into account the ability to pay. A regressive tax is a levy in a tax system where the tax rate does not change based on the level of income.

Classification of taxes continues….
Regressive tax continues …. The tax is usually charged as a % of the value of the asset the taxpayer purchases or owns. e.g 15% of the price of the goods bought. An example of a regressive tax is VAT. It places a heavy burden on the poor because it ignores the ability to pay. A proportional tax is a levy in the tax system where the taxpayer pays tax in direct proportion to their income e.g 25 % of income. An example of a proportional tax is corporation tax Each taxpayer contributes fairly to the tax net, it therefore places the same burden of tax on all taxpayers.

Classification of taxes continues….
(c) Administrative classification of tax Taxes can be classified according to their relevant laws meant to collect taxes from different sources for instance: Income tax-tax on incomes Capital gain tax-tax on capital gains Customs duty- tax on imported goods, etc. Value Added Tax(VAT)-tax on the sale of goods and services

Introduction to taxation….
1.5 Levy of tax The authority to levy and collect tax comes from legislation. Acts of parliament are issued by the government meant to provide guidelines on how to tax certain amounts. Zimbabwe Revenue Authority (ZIMRA) is a statutory body established by the Revenue Authority Act (Chapter 23:16) with a mandate of enforcing the provisions of the tax statutes/Acts. ZIMRA is responsible for assessing, collecting and accounting for revenue on behalf of the state through the Ministry of Finance. The following are the revenue heads which are administered by ZIMRA: Customs Duty- levied on imported goods in terms of the Customs and Excise Act (Chapter 23: 02) Excise Duty- levied on specified locally manufactured goods. Income Tax- levied on income earned from trade and investment. Pay As You Earn (PAYE) – levied on income earned from employment. Presumptive taxes- it‘s a concept of taxation on which income tax is based on average income instead of actual income.

Levy of tax continues…. Value Added Tax- levied on consumption of goods and services. Road Tolls- fees levied for the use of roads. Capital Gains Tax (CGT) – levied on sale of immovable properties and marketable securities. Surtax- levied on imported vehicles older than five years. ZIMRA is headed by the Commissioner General who has the responsibility of interpreting and administering the Income Tax Act and other tax statutes. Various Acts of parliament in respect to tax were enacted as basis for the collection of such tax. Besides Acts of Parliament, Statutory Instruments are passed which work in the same way as Acts of Parliament.

Levy of tax continues…. The following acts will particularly be covered in this course: Income Tax Act [Chapter 23:06] Capital Gains Tax Act [Chapter 23:01] Value Added Tax Act [Chapter 23:12] Finance Act [Chapter 23:04] The Finance Act (FA) is referred to as the charging act, in other tax legislation. Rates of tax and revision thereto are gazetted by the Honourable Finance Minister and stipulated in the FA. At the end of every year the Honourable Finance Minister pronounces the national budget in which new amendments to the acts are made. All amendments to the Acts are compiled in the FA.

1.6 SOURCES OF TAX LAW Tax law comes firstly from legislation, secondly from case law and thirdly from ZIMRA departmental practices. Besides the codified Acts of parliament(legislation) decided tax cases(case law) set a judicial precedent in the determination of tax liability of a taxpayer and are as taken as law in their respect. Legislation alone can never cover a wide variety of circumstances which arise; hence the courts rely significantly on decided court cases. Court rulings from Zimbabwean courts are binding while those from foreign lands have persuasive value. In addition to case law, ZIMRA also has its codes on how certain transactions are taxed( Departmental practices). Legislation takes precedence over case law while case law takes precedence over departmental practices.

ACTIVITY Mr Runesu works for the Zimbabwean government in Croatia. He is paid a monthly salary amounting to $ According to decided court cases, the source of income from the rendering of services is the country where the services are rendered. On the other hand, the ITA states that , if services are rendered to the Zimbabwean government by a Zimbabwean, the source of income earned is Zimbabwe regardless of where the services were rendered. Is Mr Runesu’s salary taxable in Zimbabwe?

1.7 Some important definitions (a) A person Covered by section 2 of the ITA Includes; and individual, a company, a local authority, a deceased or insolvent estate, and a trust to which no specified beneficiary is entitled. It excludes a partnership. (b) Associate (c) Ordinary residence

1.8 Principles of a good tax system The following tax principles should govern, a good tax system: i. Vertical equity principle – every member of state should contribute towards the burden of tax in accordance with his ability. ii. Horizontal equity principle- taxpayers in the same economic circumstances should receive equivalent tax treatments. iii. Certainty- the tax which an individual is bound to pay ought to be exact, and not arbitrary. The amount, timing and manner of payment should be known. iv. Simplicity – the tax legislation must be in simple language and easily understood by the subjects. v. Tax neutrality or efficiency principle – tax should act as resource allocation by assuring that economic decisions are diverted to best location. vi. Flexibility – tax system should be able to accommodate changes in business, technology and markets. vii. Effectiveness – is essentially the capacity of the tax system to achieve its objectives. Thus a tax system should be able to generate revenue. viii. Consistence and coherence – transactions with the same commercial results should have the same tax result.

Activity Discuss the extent to which Road tolls system(tollgate) as a form of tax satisfies the qualities of a good tax system.

1.8 General framework for determination/calculation of tax payable Section 7 of the ITA provides a basis for the calculation of tax liability of a taxpayer. Appropriate rates of taxes as fixed by the charging act, i.e. the Finance should be used. Before applying the rates, one should compute what is termed as the taxable income. The provisions of the tax statutes and case law give guidance in arriving at the taxable income.

General framework continues….
Framework for calculation of tax payable: Gross Income [Sect 8; Sect 10 & Sect 12 of ITA] xxx Less: Exempt Income [Sect 14 as read with 3rd Schedule, ITA] (xxx) Income xxx Less: Allowable deductions [Sect 15] (xxx) Taxable Income xxx Apply tax rates (FA) Gross tax xxx Less: Tax Credits (FA) (xxx) Net tax xxx Add: Aids Levy (at 3% of net tax) xxx Tax liability xxx Less: Tax paid in advance / Provisional tax (xxx) Tax Payable or Refundable xxx/ (xxx)

General framework continues….
• The subsequent topics will be structured in line with the above framework. • The components of the above framework will be explained in the chapters which follow: END OF CHAPTER 1 CHAPTER 2: GROSS INCOME

CHAPTER 2: GROSS INCOME Section 8(1) of the ITA defines gross income as: …the total amount received by or accrued to or in favour of a person or deemed to have been received by or to have accrued to or in favour of a person in any year of assessment from a source within or deemed to be within Zimbabwe excluding any amount so received or accrued which is proved by the taxpayer to be to be of capital nature. The term gross income is very important in tax law because it is the starting point in the determination of the tax liability of a taxpayer. The above definition gives a general formula of what should, and what should not, be included in a person‘s taxable income.

CHAPTER 2: GROSS INCOME From the definition , the following terms are the pillars of the principle of gross income: Total amount received by accrued to or in favour of a person In any year of assessment From a source within or deemed to be within Zimbabwe Receipts or accrual should not be of capital nature,

CHAPTER 2: GROSS INCOME 2.1 Meaning of ‘amount’
Section 2 of the Income Tax Act(ITA), defines an amount as money or any other property corporeal or incorporeal, having an ascertainable monetary value. 2.2 Meaning of ‘received’ A taxpayer can be said to have received an amount even if it is not paid to him personally but to his agent, or if it is banked on his behalf. The amount must, however, be one to which the taxpayer has a legal claim. A person does not receive money which, for example, has been stolen: COT v G (1981) 43. Nor does he receive in the sense used in the Act, money which has been lent to him, as held in CIR v Genn & Co (Pvt) Ltd (1955) In ITC 675 (1949), the court held that, since deposits received from purchasers of day-old chicks to be delivered in future were not refundable at the instance of the depositor represented income in the hands of the seller.

CHAPTER 2: GROSS INCOME 2.3 Meaning of ‘accrued’
An amount is said to have accrued to a person if the person becomes unconditionally entitled to the amount in the year of assessment. A prominent case of reference in tax law is probably that of Lategan v Commissioner of Inland Revenue (1926). In the above case, the word accrued was held to mean ―to which he has become entitled. In other words amounts that are due but remain unpaid are assessable. For a person to be entitled to an amount, he must acquire the legal right to receive payment. In other words, the person must be in a position to enforce payment in the courts of law if the payment remains outstanding.

CHAPTER 2: GROSS INCOME 2.4 Accrued or received?
Income may accrue in one year and be received in another, this will likely pose a challenge as to which year of assessment the income should be taxed? The phrases: received by or accrued to…in any year of assessment… from the definition of gross income in the Act suggest that income is taxed on the earlier of date of receipt or accrual. The principle above gives the Commissioner the right to levy tax in any year. This was recognised in the principle of CIR v Delfos (1933). It should be noted, however, that the Commissioner does not have an unrestricted power to choose the year of assessment. On the basis of the views expressed in Silverglen v SIR (1968), it is submitted that where accruals are disclosed he is bound to use the accruals basis, in which event the receipts basis will be applied only in cases of non-disclosure of accrual, as in the case of Maguire v COT.

CHAPTER 2: GROSS INCOME 2.5 Year of assessment
Means a period of 12 months beginning on the 1st of January in any year and; Includes any period within such a year of assessment.

CHAPTER 2: GROSS INCOME 2.6 Source of income
The Act itself contains no definition of ‘source’. Clarity is sought from decided court cases(case law). The test laid down by Watermeyer, CJ, in CIR v Lever brothers and Unilever Ltd (1946) is authoritative, namely that; The source of income is not where it comes from(the quarter whence it comes) but the work which was done by the taxpayer which resulted in the income being earned(the originating cause of the income). i.e. the quid pro quo(effort, work) which he gives in return for the income. The work may be a business, an activity, an enterprise, mental or physical effort, employment of capital to earn income or letting the use of capital to someone else.

CHAPTER 2: GROSS INCOME 2.6 Source of income continues…
So in determining the ‘source of income’ two questions should be asked; What is the ‘originating cause of the income’?-i.e. what form of work did the taxpayer do in order to earn the income? What is the geographical location of this ‘originating cause of income’?-i.e. where did the taxpayer do the work which resulted in him/her earning the income? The geographical location of the originating cause of income is the source of income.

CHAPTER 2: GROSS INCOME 2.6 SPECIFIC SOURCES OF INCOME(ORIGINATING CAUSE) 2.6.1 Royalties The source of income is the place where the intellectual property was created i.e. where the author exercised his wits and labour. Case: Millin v CIR (1928). The same principle applies to income from patent rights, and other similar accruals from intellectual property of a taxpayer. 2.6.2 Trademarks and ‘know how’ The true source is the country where the recipient carries on the activity, or employs the asset, giving rise to such income. Trademarks are an exception to all other forms of intellectual property as in the case of ITC 1491 (1991). 2.6.3 Services rendered under an employment contract Where services are rendered in an employment contract, the source of income is the place where such services are rendered. Case of COT v Shein (1958) FC.

CHAPTER 2: GROSS INCOME 2.6 SPECIFIC SOURCES OF INCOME(ORIGINATING CAUSE) 2.6.4 Directors’ fees The source of income for directors’ fees is where the head office of the company to which the director renders his services is located. Thus, if the head office is located in Zimbabwe then the director’s fee is from a Zimbabwean source. Case of ITC 106 (1927). If however, the director renders his services in the capacity of an employee, i.e. earning a salary then the source of such income is determined by the place where the services are rendered. 2.6.5 Services rendered in the course of carrying of business or trade. The principle for rendering of service stands that the place where the services are rendered is the source of income. 2.6.6 Sale of shares The originating cause of income derived from the sale of shares is the buying and selling of shares, thus the place where the shares were traded IS THE SOURCE OF INCOME. The principal case is that of Commissioner for Inland Revenue (CIR) V Black, 21 SATC 226.

CHAPTER 2: GROSS INCOME 2.6 SPECIFIC SOURCES OF INCOME(ORIGINATING CAUSE) 2.6.7 Income derived from trade The source of income from trade is the place where the trade is carried out , Case: Smith & Co. v Greenwood, 8 T.C. at or ; Where the trade is controlled; Case: San Paulo (Brazilian) Rly Co. Ltd v Carter, [1896]. 2.6.8 Business operations- profits The source of profits from business operations is the place where the operations are being carried out. If the business operations extend beyond one country, then the source of profits is the country of dominant activities. Where the business profits arise from trading activities which extend beyond one country the source of profits is taken to be the country in which the goods are sold. Australian Case :Commissioner of Taxation of Western Australia v Murray Limited, 42 C.L.R. 332. 2.6.9 Dividends The source of income for dividends is the country in which the company from which dividends are paid is incorporated. Case: Boyd v CIR (1951).

CHAPTER 2: GROSS INCOME 2.6 SPECIFIC SOURCES OF INCOME(ORIGINATING CAUSE) Annuities The source of an annuity, in the case of contractual annuity, is the place where the contract was concluded: Boyd v CIR (1951). In the case of a will trust, the source of an annuity is the place where the will is executed: ITC 826 (1956). Interest Interest income is derived from the letting of use of capital to another person. The source of interest is the place where the credit was granted(loan) or the place where the capital producing the interest was employed(other activities). Dunn & Co. and Overseas Trust Corp Ltd. v C.I.R, 1926 A.D

CHAPTER 2: GROSS INCOME 2.6 SPECIFIC SOURCES OF INCOME(ORIGINATING CAUSE) Rentals The source of rental income from immovable property, such as building, is the place in which the property is located. Thus, the country in which the property is situated is the place in which the owner of such property has employed his capital. In the case of movables, the general rule may vary according to circumstances. For short term leases(less than 5 years), the source of rentals will be the country in which the owner of the hired assets carries on business. For long term leases-5years and above, the country where the asset is used by the customer constitute the source of rentals as held in the case of, COT v British United Shoe Machinery (Pty) Ltd (1964) 26 SATC 163. Partnership profits The source of partnership profits is the place where the partner renders his services to earn the partnership income, CIR v EPSTEIN, 1954.

CHAPTER 2: GROSS INCOME 2.7 Deemed Sources(Sect 12)
There are cases where the ITA assumes that income is from a source within Zimbabwe even if the true source is not Zimbabwe. 2.7.1 Contract for the sale of goods: Sect 12(1) (a) If a contract for the sale of goods is made and concluded in Zimbabwe the source of the income is deemed to be Zimbabwe. 2.7.2 Income derived from rendering of services: Sect 12(1) (b) If a person earns income from the rendering of services in Zimbabwe, the source of that income is deemed to be Zimbabwe. A person can render services in the course of employment or in carrying on of a trade. Trade is defined in section 2 of the Act as including any profession, trade, business, activity, calling, occupation or venture, including the letting of any property, carried on, engaged in or followed for the purposes of producing income. It does not matter where the funds or payment for the services rendered comes from, what is important is the fact that the services producing the income have been performed in Zimbabwe.

CHAPTER 2: GROSS INCOME 2.7.3 Income from services rendered by an employee during period of temporary absence from Zimbabwe: Sect 12(1) (c) If an ordinary resident of Zimbabwe receives remuneration for services rendered(as an employee) outside Zimbabwe during a period of temporary absence, the source of such income is deemed to be Zimbabwe. A period of temporary absence is a period not exceeding 183 days in aggregate during a year of assessment. In literal sense, it is a period less than six months. This section specifically includes a director in the definition of an employee. 2.7.4 Services rendered to Zimbabwe government: Sect 12(1) (d) Remuneration paid to a government official who is an ordinary Zimbabwean resident is deemed to be from a Zimbabwean source regardless of the place where the services are rendered. An exception is services rendered to the Zimbabwe government by a person who is not a resident of Zimbabwe.

CHAPTER 2: GROSS INCOME 2.7.5 Services rendered: Pension and Annuities: Sect 12(1) (e) An amount received by a person in the form of a pension or an annuity for services rendered in Zimbabwe from wherever source, is deemed to be from a source within Zimbabwe. 2.7.6 Interest and dividends: Sect 12(2) Foreign dividends and interest received by a person in any year of assessment is deemed to be from Zimbabwe. The dividends or interest should be received or accrue or deemed to have accrued to the recipient at the time he is an ordinary resident of Zimbabwe. 2.7.7 Annuities: Sect 12 (3) An annuity received from outside Zimbabwe is deemed to be from a source within Zimbabwe if the right to the annuity was acquired by the annuitant at the time he was an ordinary resident of Zimbabwe. The right to the annuity should have been acquired by payment of a sum of money or have been acquired by way of a disposal of an asset by the annuitant or by both means.

CHAPTER 2: GROSS INCOME 2.8 Deemed accruals(sect 10).
In order to combat tax avoidance, there are instances where the ITA assumes that income has accrued to a person even if the taxpayer is trying to divorce him/herself from the income. 2.8.1 Income not paid over [S10 (1)] Income is deemed to have accrued to a taxpayer even though it has; been invested, accumulated or otherwise capitalized by him; or not been actually paid to him, but remaining due and payable to him; or has been credited to an account or reinvested or accumulated or capitalized or otherwise dealt with in his name or on his behalf. 2.8.2 Partnership income [S10 (2)] Income accruing to a partnership is deemed to be accruing to the partners in proportional to their agreed profit sharing ratios. 2.8.3 Income accruing to a minor child [S 10 (3)] Income accruing to a minor child from a donation, settlement or other disposition made by one of his parents is taxable in that parent‘s hands. A minor child is a child under the age of 18 years and unmarried. However, if a minor child receives income in his own right, such as wages for services rendered, he, and not his parent, is taxable on such income.

CHAPTER 2: GROSS INCOME 2.8.4 Cross donations [S 10 (4)]
If a parent makes a donation to a child of another parent, and if the parent of the child to whom a donation is made; or his spouse or near relative makes a reciprocal donation to the child of the first parent the donations are taxable in the hands of the parents. 2.8.5 Income postponed by stipulation of maker of donation, settlement or other disposition [S 10 (5)] To curb tax avoidance, this section is meant to restraint an attempt by a taxpayer, who makes a donation (commonly to a trust) for the purpose of divesting himself of the right to the income from the donated assets but at the same time withholding such income from the donated assets from the beneficiaries until the happening of some event. The withheld income is deemed to remain that of the donor if: 1. The donor (or near relative) has power to control the ultimate devolution of the income; or 2. Any of the funds or income could devolve or be lent to the donor (or his spouse, or one of their deceased estates, or a company controlled by any of them). 2.8.6 Income accruing by the rights and power retained by maker of donation or other disposition [S 10 (6]. If a donor reserves to himself the right to confer the income from a donation, settlement or disposition on some other person, he is taxable on income arising from the donation, for so long he retains that power.

CHAPTER 2: GROSS INCOME 2.8.7 Amounts accruing in the year of assessment and which are payable after the last day of the end of year of assessment.[ S 10 (7)]. Where a taxpayer becomes entitled to any amount which is payable after the last day of the year of assessment, the amount shall be deemed to have accrued to him in the year of assessment. This section provides the basis for taxing income that is receivable by way of installments such as hire purchase agreements and credit sales.

CHAPTER 2: GROSS INCOME 2.9 Receipt of capital nature
The definition of gross income specifically excludes amounts proved by the taxpayer to be capital in nature. Legislation did not give the meaning of capital nature. Reliance can thus be placed on decided court cases so as to elucidate the meaning of the term. The basic principle of determining whether an item is of capital or revenue in nature, is to examine the intention underlying the transaction. Where there are more than one intention, then the dominant intention will determine the nature. Any transaction undertaken for a profit motive is of revenue nature and is taxable, despite the fact that it might be an isolated transaction; Case : Overseas Trust Corporation v CIR (1926) 2 SATC 71. As a general rule, capital is wealth used to generate more wealth, income is the fruits of capital productively employed. The sale of fixed capital represents a realization which should not be included in gross income.

CHAPTER 2: GROSS INCOME 2.9 Receipt of capital nature continues…. Form of capital receipts Explanation 1.Restraint of trade 2.Damages compensation 3.Inheritances 4.Fortuitous receipts END OF CHAPTER 2 CHAPTER 3: EXEMPTIONS

CHAPTER 2: GROSS INCOME Example Determine the Gross Income for 2015 from the information given below for an ordinary resident of Zimbabwe($) Insurance Policy Proceeds 12,000 Rent from a house in Harare 25,000 Fixed Deposit account interest from South Africa 1,000 Econet Zimbabwe dividends 3,500 Textbooks royalties from Zimbabwe 53,000 Rent from a house in Botswana 250,000 Salary form ZIMRA 110,000 Bank interest from a book written in Nigeria 3,600 Zimbabwe debenture interest 60,000 Annuity from a fund in Zimbabwe 10,000 Allowances from Zimbabwe Government for services rendered in Swaziland 60,000 Leave pay (for December 2014 & January 2015) 200,000 Cash in lieu of leave 12,000 Groceries received from employer 500 Commission earned from sell of motor vehicle 74,000 Loan from local building society 50,000

CHAPTER 2: GROSS INCOME Example Determination of the Gross Income for 2015 for an ordinary resident of Zimbabwe($) Insurance Policy Proceeds(capital in nature) - Rent from a house in Harare(source is Zimbabwe) 25,000 Fixed Deposit account interest from South Africa(deemed source-s12) 1,000 Econet Zimbabwe dividends(source is Zimbabwe) 3,500 Textbooks royalties from Zimbabwe(source is Zimbabwe) 53,000 Rent from a house in Botswana(source not Zimbabwe) - Salary form ZIMRA(source is Zimbabwe) 110,000 Royalties from a book written in Nigeria(source not Zimbabwe) - Zimbabwe debenture interest(source is Zimbabwe) 60,000 Annuity from a fund in Zimbabwe(source is Zimbabwe) 10,000 Allowances from Zimbabwe Government for services rendered in Swaziland 60,000 (Deemed source-s12) Leave pay (for December 2014 & January 2015)-Accrual Cash in lieu of leave(source is Zimbabwe) 12,000 Groceries received from employer (total amount) 500 Commission earned from sell of motor vehicle(srce is Zim) 74,000 Loan from local building society( not a receipt) -

CHAPTER 3: EXEMPTIONS To be deducted from gross income, are amounts that otherwise meet the definition of gross income but which are specifically stated in the revenue statutes to be exempt from tax. Section 14 of the ITA as read with the Third Schedule, stipulates such amounts. The FA specifies some absolute amounts which are exempt as pronounced by Honorable Finance Minister in the annual national budget. Some income enjoy full exemption some only partial, e.g. bonuses. Exempt income can be categorized in two ways: (a) By the identity of the recipient, or (b) By nature of income.

CHAPTER 3: EXEMPTIONS 3.1 Exemptions on individuals
Generally amounts accruing to or received by an individual, which does not meet the definition of gross income is exempt. For instance income received from a source outside Zimbabwe. Salary or allowances paid to the President of Zimbabwe and to domestic workers of the president to the extent that the salary is paid by him from his salary. Allowances paid to a member of parliament and the minister. Allowances paid to civil servants. Only allowances, salary is taxable. Allowances paid to the chief or village headman. Receipt of a scholarship or bursary. Alimony or maintenance received by a person. Allowance paid to the councillor. Bonus or any performance related award, in respect of the first US $1000.

CHAPTER 3: EXEMPTIONS Retrenchment package, in respect of a third of such package to a minimum of US$ and a maximum of US $ (i.e. the ceiling of retrenchment package is US $60 000) A scholarship paid to a student, as long as it is not payment for services rendered. The value of medical treatment or of travelling to obtain such treatment which is provided by an employer for an employee or the dependant of an employee, whether provided in kind, by direct payment, by refund or in any other manner whatsoever. Refunds from medical aid society or benefit funds. The amounts are exempt, they are used then to reduce the respective medical expenses suffered in that year when calculating medical expenses credits. The amount of any contributions paid to a medical aid society by an employer on behalf of his employee. Such contributions do not stand as credits to the taxpayer because he did not suffer the expense himself. Contributions to pension fund paid on behalf an employee by his employer. Compensation for injury at work paid by an employer. An amount accruing by way of a benefit in respect of the injury, sickness or death of a person which is paid to the person or his dependants or deceased estate; or from a benefit fund; or in terms of a policy of insurance covering accident, sickness or death; or by a medical aid society.

CHAPTER 3: EXEMPTIONS Any amount received by way of an entertainment allowance to the extent that it is expended on the business of the employer. A pension received by an elderly person from the Consolidated Revenue Fund or any approved pension fund. 3.2 Exemptions on elderly persons Exemption from Income Tax of the first US$ per annum on rental income. Exemption from Income Tax of the first US$ per annum on income earned from bankers acceptances. Exemption from Income Tax of the first US$ per annum on income earned from interest on deposits with financial institutions. Pension received from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax. Where an employer disposes of a motor vehicle to an employee whether on termination of employment or otherwise, the benefit is exempt from tax.

CHAPTER 3: EXEMPTIONS 3.3 Exemptions on Trade and Investment Income
Interest from a POSB (Zimbabwe) account or Zimbabwe Revenue Authority tax reserve certificates. Interest on class C permanent shares issued by building societies. Dividend received from a Zimbabwean company which is chargeable to tax on its profits. To clarify on this, dividend is exempt only in the hands of a statutory corporation, a company limited by shares, a private business corporation, a pension fund, a benefit fund or a medical aid society which is resident in Zimbabwe at the time of receipt . Interest received by a non-resident not carrying business in Zimbabwe on a loan granted to a building society or to a person carrying out mining operations, to the state or local authority and statutory corporation. Interest accruing to a resident company which has been subjected or which is subject to withholding taxes (Resident Tax on Interest) is also exempt. Thus interest from financial institutions (Banks, Building society, POSB, RBZ etc.) is exempt. Unless the question specifies that the interest was , then received gross you have to tax it. Interest on loan raised by state, a taxpayer who loans the state or statutory corporation is exempted on tax on interest accruing to him. Examples of such interests in Treasury Bills.

CHAPTER 3: EXEMPTIONS Amounts paid by the state to an exporter of goods in a scheme of export development. Example is export incentive grants Interest earned on approved loans to Statutory Corporations is exempt from income tax retrospectively, from 1 February 2009. Interest earned on loans to small scale miners – with effect from 1 January 2015, interest accruing from loans to small scale gold miners is exempt from tax. With effect from 1 November 2014, the 15th Schedule to the Income Tax Act is amended to exempt from Shareholders’ Tax, deemed dividends arising as a result of exceeding the debt to equity ratio of 3:1. Income from sale of traditional beer. The receipts and accruals of an industrial park developer, to the extent that they accrue directly from the operation of his industrial park for the first five years of his operation

CHAPTER 3: EXEMPTIONS 3.4 Organisation whose receipts and accruals are exempt from tax Receipts accruing to the following categories of organisations are exempt from tax. Parastatals and government owned entities, e.g. ZESA, NRZ, and RBZ etc. Non profit making or non-profit sharing organisation which are of public characters: Ecclesiastical or charitable institutions e.g. trust organisations, church organisation Clubs, societies, institutes and associations organized and operated solely for social welfare, civic improvement e.g. institutes like CIS, IBAS, ACCA, ICAZ Employees saving schemes Pension fund Trusts of a public character International government organizations, e.g. African Development Bank, FAO, WHO, IMF etc.

CHAPTER 3: EXEMPTIONS Example
Mr Jones is 56 years old and is a Director in the Ministry of Finance in Zimbabwe. He obtained the following income during the year of assessment. Calculate his Income. $ Salary Housing Allowance Transport Allowance Cash in Lieu of leave Bonus Retrenchment package Pension from government Rental income Bankers’ acceptances interest Interest from POSB Zimbabwe Interest from deposits with CBZ Income from Poultry Project Dividends from Econet Zimbabwe

CHAPTER 3: EXEMPTIONS Calculation of Mr Jones’ income fro the year of assessment $ Salary Housing Allowance Transport Allowance Cash in Lieu of leave Bonus Retrenchment package Pension from government Rental income Bankers’ acceptances interest Interest from POSB Zimbabwe 500 Interest from deposits with CBZ Income from Poultry Project Dividends from Econet Zimbabwe Gross Income

CHAPTER 3: EXEMPTIONS Calculation of Mr Jones’ income fro the year of assessment $ $ Gross Income Less Exemptions Housing Allowance(civil servant) Transport Allowance(civil servant) Bonus(max.) Retrenchment package(1/3X or ) Pension from government(elderly) Rental income(elderly) Bankers’ acceptances interest(elderly) Interest from POSB Zimbabwe 500 Interest from deposits with CBZ(withhold.tax) Dividends from Econet Zimbabwe(local company) (31 500) Income

CHAPTER 4: ALLOWABLE DEDUCTIONS
4.1 Allowable deductions [Section 15] These are amounts that the Commissioner would allow to be deducted from the gross income so as to arrive at the taxable income. Section 15 of the ITA provides a guide that helps to identify expenses which are allowable for tax purposes. The general deduction formula gives a general guide as to the type of expenses that are allowed for tax purposes. The specific deduction formula provides guidance on the specific expenses which can be deducted and how they should be deducted. 4.2 General deduction formula

These are general principles which give guidance on whether an expense is deductible. Each and every taxpayer’s expenditure should be tested against this formula before being treated as deductible. Section 15(2)(a) of the Income Tax Act [Chapter 23:06] gives the general deduction formula which states that: The deductions allowed shall be— Expenditure and losses to the extent to which they are incurred for the purposes of trade or in the production of the income except to the extent to which they are expenditure or losses of a capital nature.

(a) Expenditure and losses actually incurred Only expenditure and losses incurred by a taxpayer are deductible. Expenditure is incurred intentionally by a taxpayer. A loss is an involuntary expense, incurred unintentionally and fortuitously; an example is when a taxpayer fails to recover an amount owed by a debtor (bad debt). The expenditure or loss must have been actually incurred. Incurring an expense does not mean the expense must have been paid for but includes a liability which have been assumed. Notional expenses such as provisions for depreciation, provision for director’s fees etc. are not deductible. The obligation must be an unconditional legal obligation (Edgars Stores Ltd V Commissioner For Inland Revenue 50 SATC 81 (A) – 1988) If a payment is conditional on the happening of an event, whether suspensive or resolutive, the expense is only actually incurred once the condition has been met.

Important points!!! There’s no deductions for contingency provisions, transfers to reserves. NO deductions for items in dispute- SEE, COMMISSIONER FOR INLAND REVENUE v GOLDEN DUMPS (PTY) LTD 55 SATC 198 (A) NO deductions for notional losses or opportunity costs- NO deductions for unrealized losses. Unquantifiable expenditure is deductible in the year it is quantifiable.

(b) Incurred for the purpose of trade Only expenditure or losses associated with the taxpayer’s trade is deductible. Trade refers to the ordinary income earning activities of taxpayer.

The courts apply the following tests in order to establishing whether expenditure was incurred in the course of the taxpayer’s trade. i. Artificial or contrived structures-a trade must involve genuine and planned activities that a taxpayer does. ii. Financial or other risks involved- A taxpayer has to risk something with the objective of making profit. iii. The profit motive-the primary motive of undertaking a trade should be to make profit iv. Continuity of the activities-although not very important in the case of a company, the principle is important in the case of an individual. v. Active business, NOT passive- a trade results in active income not passive income such as interest or dividends.

(c) In the productive of income The phrase seeks to cover expenditure which is incurred in the production of income which is however not directly linked with the taxpayer’s trade. The courts are known to apply the following tests: i. Closely connected test / inevitable expenditure The test postulated is to enquire whether the purpose of the expenditure is to produce income and if so was it necessary for the performance of the act which generates the income or even attached to it by chance and was the expense so closely connected with the income earned that it may be regarded as part of the cost of performing it. See, Port Elizabeth Electric Tramway Company Ltd V Commissioner For Inland Revenue 8 SATC 13.

Expenditure must be!!!! Must be a necessary expense in order to perform the act intended to generate income. Attached to the act by chance. Bone fide incurred for the more efficient performance of the act. The case of JOFFE & CO (PTY) LTD v COMMISSIONER FOR INLAND REVENUE 13 SATC 354 (A) – 1945 amplified the meaning of the phrase in the production of income. The following principles were added:

The expense should not be incurred as a result of the taxpayer’s negligence for it to be deducted. Expenses incurred which are not related to the taxable income may not be deducted e.g; dividend income from a local company is exempt (Not income) so any expenses incurred with respect to the earning of the dividend can’t get a deduction. The purpose of the expense must be to produce income, even if no income was made.

(d) Expenditure and losses of capital nature Distinguishing between capital and revenue expenditure is not a simple task. The capital-revenue distinction is surrounded with complexities. Over the years; the courts have applied the following tests among other tests, to explain the nature of expenditure. 1. Income-earning structure vs. income-earning operations test Expenditure associated with income earning-structure is capital, expenditure incurred on income earning operations is revenue. 2. Expenditure incurred in creating or acquiring an income producing concern, machine or structure-Expenditure on acquiring an income producing concern is capital.

3. Expenditure incurred in creating an enduring benefit or advantage to a taxpayer- expenditure meant to producing lasting benefit to a taxpayer is capital in nature. 4. Recurrence nature of expenditure/ “once and for all” test- once off expenditure is usually capital in nature while recurrent expenditure is revenue in nature. 5. Expenditure on Fixed or floating capital- floating capital is revenue expenditure and fixed capital is capital expenditure. Floating capital changes form while earning income while fixed capital keeps its form while earning income. .

CHAPTER 4(b): PROHIBITED DEDUCTIONS
PROHIBITED DEDUCTIONS: SECTION 16 OF THE INCOME TAX ACT [CHAPTER 23:06] This section specifies the expenses which should not be deducted in calculating taxable income. The section is a favourite of examiners but most students fail to grasp that and are, as a result found wanting.

DETAILS OF SPECIFIC PROHIBITED DEDUCTIONS Section 16 Paragraph 1 (a) Cost of incurred by a taxpayer in maintaining himself, his family or his establishment. Example: cost incurred by a taxpayer on food, school fees, clothing of himself or his family. (b) Private expenses- which includes the cost of travelling between his home and the place at which he carries on a trade and, in the case of a taxpayer who carries on two or more trades which are distinct in nature, between the places at which such trades are carried on. (c) Any loss or expense which is recoverable from an insurance contract or indemnity. Example: ABC ltd has its car accident damaged; the value of the car at date of damage was $ The company received $ only from Eagle insurance. The loss claimable as deduction is only $5000 (unrecovered)

(d) Tax levied upon the income of a taxpayer or interest on overdue tax payable thereon. What this paragraph simply mean is that no tax on other tax head can be claimed against another tax head, for instance, VAT, PAYE penalty etc suffered by a taxpayer cannot be allowed as deduction. (e) Transfers to reserves – profit which has been transferred to reserves is not deductible. In corporate accounting there are transfers to which can be made from profit and loss account to reserves an example is a transfer to a general reserve. Such transfers are not expenditures fit for deduction. (f) Expenditure or loss including assessed losses, incurred in the production of income which is exempt from tax.

(g) Unapproved contribution made by a taxpayer to a fund established for the purpose of providing pensions, annuities or sickness, accident or unemployment or other benefits for employees or the widows, children, dependants or nominees of deceased employees or for all or any of those purposes, except to the extent permitted in the sixth schedule. Only contributions to funds approved or registered in accordance with laid down procedures are deductible, subject to imposed limits. (h) Interest which might have been earned on any capital employed in trade. This is an opportunity cost as a result of opportunity lost when capital is tied up, say in stocks or debtors. (i) The rent of, or cost of repairs to, any premises not occupied for the purposes of trade, or any dwelling house or domestic premises, except such part thereof as may be occupied for the purposes of trade. (j) Cost of securing sole selling rights. An example is when company A pays Company B a certain sum of money so that company B sells only A’s products.

(k) An amount in excess of US $10 000, for 2015 Tax Year, paid for leasing a passenger motor vehicle(PMV). The reason for this limitation is obviously that; it is not rationale for a person to incur more in hiring a car (PMV) than it could have spent in buying the car outright. Remember the deemed cost of a PMV is $ (l) The cost of any shares awarded by a company to an employee or director. (m) Any expenditure incurred by any taxpayer on entertainment whether directly or by the provision of any allowance to any employee including a director to incur expenditure or entertainment on behalf of the taxpayer. This is commonly examined, expenditures incurred on say, Christmas parties or Christmas hampers is not allowable to the employer. (n) Expenditure incurred in the production of any income arising from stocks or shares of any company. Foreign dividends accruing to a Zimbabwean resident is taxable gross, no deductions are allowable in respect of those income.

(o) Expenditure incurred in the production of income consisting of interest payable by a bank, finance house , discount house or building society on any loan or deposit with such institutions. The reason for this prohibition is that the interest from financial institutions is exempt from further tax. A withholding tax is deducted at source and the interest is not subject to further tax. (p) Provisions for anticipated or contingent losses or expenditure. It is accepted accounting principles of deducting provisions as expenses, examples of provisions are: provisions for depreciations, provisions for bad debts, provisions for refunds on customers. Such provisions are prohibited under this paragraph. (q) Expenditure incurred in earning foreign dividends. (r) Mining Royalties - With effect from 1 January 2015, royalties paid during the year of assessment will no longer be tax deductible.

CHAPTER 4(c): SPECIFIC ALLOWABLE DEDUCTIONS
These are covered by section 15(2)(b) and will be covered under employment income taxation and taxation of companies.

AAA Ltd has a 31 December year end. For the following expenditure, calculate the deductions available for a company that has a profit of $10,000,000 before taking into account the items mentioned below Carrying on a trade • The company bought shares in A Ltd, a company listed on the ZSE, for $100,000 as an investment. The company paid $10,000 interest on a loan specifically taken out to buy these shares. They received $5,000 dividends from these shares. Expenditure and losses • The company wrote off depreciation of $120,000 during the year. Actually incurred Caltex case application • The company promised to give the sales manager a new BMW 7 series if he exceeded sales targets for the year. The BMW would be given on 31 January of the next year. The sales target was exceeded in September when the cost of the car would be $600,000. At year end, the car price was $625,000. • In the previous year, a similar competition was held. The car cost $400,000 at year end. The company eventually paid $420,000 for the car before giving it to the top salesman.

Edgars case application • The company had a lease at Sandton City shopping centre. In March of each year, the company pays a top up of rent. The company has an annual rental of $480,000 for the shop. If the company turnover for the shop is greater than $10,000,000, the company pays 5% of turnover for each $1 of turnover above $10,000,000 for the year March to February. At the end of December, turnover was $9,800,000 for the Sandton shop. By the end of February, turnover was $11,500,000. • The company had a lease at Eastgate shopping centre. In March of each year, the company pays a top up of rent. The company has an annual rental of $360,000 for the shop. If the company turnover for the shop is greater than $7,000,000 for the year, the company pays 5% of turnover for each $1 of turnover above $7,000,000 for the year March to February. At the end of December, turnover was $8,000,000 for the Eastgate shop. By the end of February, turnover was $10,800,000.

• The Eastgate shop pays a bonus to its manager. Turnover from 1 January till 31 December was $11,000,000 for the year. The manager is paid a bonus of 4% of turnover above $10,000,000 for the year January to December. The company only established turnover for the year on 15 January, 15 days after year end. Nasionale Pers case application • The company has a manufacturing division. The division pays a bonus at the end of June each year the equivalent of a 13th cheque. If an employee is not working for the company in June, they do not qualify for a bonus. The provision at 31 December was correctly calculated at $100,000. • The company has a sales division. The division pays a bonus at the end of June each year the equivalent of a 13th cheque. If an employee leaves, the employee is paid pro rata his bonus for the number of months worked until the date of leaving. The provision at 31 December was correctly calculated at $120,000. Golden Dumps case application • The company was involved in legal dispute 1. If they lose the dispute, $1,000,000 in damages would to be paid out. (This $1,000,000 would be tax deductible). The lawyer considers that the company has a fair chance of winning the case. • The company was involved in a legal dispute 2. If they lose the dispute, $1,500,000 in damages would to be paid out. (This $1,500,000 would be tax deductible). The lawyer considers that the company has no chance of winning the case and has recommended to management to settle out of court. Management has ignored the lawyers advice to date.

Other application of unconditionally actually incurred • The company asked a security company to guard their business premises from 15 December till 8 January. They promised to pay an amount of $100,000 to ADT Ltd, a security company should no stock be stolen over this period. If stock is stolen, the market value of stock stolen will be taken off the $100,000 price. As at 31 December, no stock had been stolen. During the year of assessment The company forgot to claim a $20,000 consulting fee in the previous tax year. In the production of income Sub Nigel v CIR • The company received $80,000 income last year in advance from B Ltd. The company incurred $34,000 of expenditure in rendering the services for B Ltd in the current year. All $80,000 was recognised as gross income in the previous tax year. • The company incurred $42,000 in expenditure in terms of a new product line that the company started. The new product line has not yet started producing income from the new product line.

PE Tramway case A bus driver was transporting company staff to the factory. There was an accident due to driver error and 3 staff members were killed and 12 people were injured. The company paid $132,000 in compensation to employees in respect of the accident. The bus driver had the correct license and the bus was roadworthy. Joffe case • The company was involved in the digging of a tunnel. The tunnel was reinforced with an inferior grade of concrete. The tunnel collapsed killing 2 people. The company paid $120,000 in compensation to the families of the 2 people. Not of a capital nature New State areas case • The company started a new factory. Sewerage points needed to be connected to the municipal sewerage points. The council paid for the sewerage work and to recover amounts paid from 1 November: o Charged $2,000 a month to the company for 60 months to recover costs of sewerage laid down on the company premises. BPSA V CSARS • The company obtained the right to open fast food stores from “Taco Hell”, a successful USA fast food chain. Royalties of $100,000 were paid during the year.

Rand Mines v CIR • The company paid $5,000,000 to take over a contract to manage 72 franchise stores for a fast food chain. The contract was for 6 years and was estimated to earn approximately $3,000,000 a year for the company. To the extent of trade Warner Lambert v CSARS and Nemojim v CIR • The company donated a BMW 325i car (costing $400,000) to St Sami school as a prize in the school raffle. They had a dual reason for doing this. They wanted to advertise the name of the company and they also had a philanthropic reason. Neither reason was more dominant than the other. The company did not have an established track record donating to third parties.

Insured losses • The company incurred $400,000 in a compensation claim for an employee injured in an accident at work. This accident happened from time to time at work and was usually unavoidable. The claim had been insured against. $300,000 was received from the insurance as compensation for the payment to the employee. Tax paid • The company paid $400,000 in tax during the year. Reserve transfers • The company transferred $300,000 from retained income to general reserve Expenses used to produce exempt income • The company incurred $20,000 in expenditure to generate local dividend income. Expenses deductible to the extent of trade • The company paid $20,000 expenses for something that was 40% for the company and 60% for a shareholder of the company that did not work for the company. Corrupt activity or break the law The company received $30,000 in fines for overloading trucks. The overloading of trucks meant that the company could deliver more product thereby increasing profitability. • $230,000 was paid as a bribe to generate business.

CHAPTER 5: TAX CREDITS A tax credit is a relief awarded to a taxpayer, on his assessed tax liability. Tax credits are given to a taxpayer on the grounds that they, to some extent suffer certain disadvantages in life. Tax credits are stipulated in the FINANCE ACT (FA) and revised therein from time to time as may be gazetted by the Honourable Finance Minister. (a) Elderly persons(s10) An elderly person is a person who is 55 years of age and above. A credit of USD 75 per month or USD 900 per annum is applicable for 2015 Tax Year. To be eligible for the credit a taxpayer should have attained the age prior to the commencement of the year of assessment. The credit is apportioned on a time basis if the period of assessment is less than twelve months.

CHAPTER 5: TAX CREDITS (b) Disabled person’s credit(s13)
A credit of USD 75 per month or USD 900 per annum is applicable to a taxpayer who is either mentally or physically disabled to the satisfaction of the Commissioner that he or she is disabled to a substantial degree. A blind person is not regarded as disabled for the purpose under this credit. The credit is NOT apportioned if the period of assessment is less than a year. If the taxpayer who is not a married woman has a child, who is mentally or physically disabled to the satisfaction of the Commissioner he or she can claim the same credit against his or her tax liability. Exam tips! The disability should be of permanent nature, i.e. certified by a competent doctor to be permanent. The taxpayer can claim a credit if himself, his spouse or child is disabled. The credit cannot be claimed if the taxpayer was not at any time during the period of assessment, ordinarily resident in Zimbabwe. The credit is granted in respect of each child of a taxpayer who is mentally or physically disabled. A child includes a step child and lawfully adopted child.

CHAPTER 5: TAX CREDITS (c) Blind person’s credit(s11)
A credit of USD 75 per month or USD 900 per annum is awarded to a taxpayer who is blind or whose spouse is blind. Any portion that is not utilized by a married blind person is allowed as deduction against the tax liability of his or her spouse. The credit is NOT apportioned nor does it apply to a taxpayer‘s blind child.

CHAPTER 5: TAX CREDITS (d) Medical expenses and invalid appliances credit(s12) A credit to the tune of 50% of amounts of medical expenses incurred by a taxpayer in the year of assessment is deducted against his tax liability. Medical expenses means; (i)The sum of any payments made for the purchase, hire, repair, modification or maintenance of any invalid appliance or fitting which the Commissioner is satisfied is necessary for use by a tax-payer or his spouse or any child or the taxpayer as consequence of any mental or physical defect or disability. Invalid appliance includes; a wheelchair or any mechanically propelled vehicle which is specially designed and constructed for the carriage of one person, being a person suffering from a physical defect or disability; or Any artificial limb, leg callipers or crutch; or Any special fitting for the modification or adaptation of a motor vehicle, bed, bathroom or toilet to enable its use by a person suffering from a physical defect or disability; or Spectacles or contact lenses;

CHAPTER 5: TAX CREDITS ii. The sum of any payments made for—
Services rendered to a taxpayer, his spouse and minor children or one or more of them by a medical or dental practitioner; and drugs and medicines supplied to a taxpayer, his spouse and minor children or one or more of them on the prescription of a medical or dental practitioner; and the accommodation, maintenance, nursing and treatment, including blood transfusions and X-ray and laboratory examinations, tests and the like, of a taxpayer, his spouse and minor children or one or more of them in or at a hospital, maternity-home, nursing- home, sanatorium. surgery, clinic or similar institution; and the conveyance by ambulance, including an air ambulance, of a taxpayer, his spouse and minor children or one or more of them; and iii. Contributions to Medical Aid Societies Contributions made by the taxpayer for himself, or for the benefit of his spouse or minor child, are allowed as a credit against his tax liability to the tune of 50% of the amounts contributed.

CHAPTER 5: TAX CREDITS Exam tips!
The credit can only be claimed by a taxpayer who has ordinarily been resident in Zimbabwe during the period of assessment. A taxpayer, his or her spouse, or minor child if he or she is entitled to refund from whatever source CANNOT be granted the credit. Medical expenses or contributions paid on behalf of the taxpayer cannot stand as a credit. A child includes a step child and lawfully adopted child.

Example of Tax Credits calculation
Hypothetically, let us take the case of a qualifying elderly person (over 55 years) whose income is US$3000 per month and who contributes US$120 to NSSA and US$200 to a medical aid society. Injured in a road accident, he incurs medical expenses amounting to US$350 and purchases an artificial limb for $150 during the period of assessment to replace an amputated leg. His applicable tax credits per month, will be calculated as follows:

Calculation of total tax credits

CHAPTER 6: TAXATION OF EMPLOYMENT INCOME
Gross income (sect.8) The 13th Schedule to the ITA, gives the basis for taxing employment income. It states that, every employer is required to withhold part of the remuneration payable to his or her employee as is equivalent to the tax liability of such employee. For employment income, remuneration is what constitutes gross income to an employee. Remuneration is defined to include, salary, overtime, benefits received under employment, terminal benefits and pension receipts. Remuneration means any amount of income which is paid or payable to any person by way of any salary, leave pay, allowance, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation(pension) allowance, retiring allowance, commutation of a pension or an annuity, whether in cash or otherwise and whether or not in respect of services rendered.

Gross income (sect.8) 6.2.1 Amounts received from services rendered during course of employment (a) Bonus Bonus or performance related awards are taxable on employees. The maximum exemption of USD 1000 is provided by the Act on the aggregate of bonuses or performance related award received by an employee during 2015 Tax Year. (b) Gifts and voluntary payments Gifts and voluntary payments made by an employer to an employee are items of capital nature. (c) Golden handshakes and Golden Hellos A golden handshake is a payment made to an employee as inducement to stay with the company, whilst; A golden hello is a payment made to person as inducement to join a company. Both payments are taxable in the hands of the employee.

Gross income (sect.8) (d) Gambling, Prizes and incentives Gambling receipts are of capital nature, unless such receipts are won by a professional gambler. A prize generally is a receipt of capital nature, an exception is a prize won as a result of employment which is however, taxed, for instance, employee of the year award. (e) Restraint of trade Amounts paid to a person to restrain such person from carrying out his or her trade, profession or imparting of knowledge is of capital nature. It is not taxable in the hands of recipient nor is it deductible in the hands of the payer.

Gross income (sect.8) 6.2.2 Terminal Benefits (a) Cash in lieu of leave (CIL) This is a payment in compensation of leave days accrued but not taken. Such payment is gross income to the employee and is taxable. Usually CIL is paid on termination of employment where cessation of the contract renders it impossible for the employee to take his or her accrued leave days. (b) Gratuity This is a payment made in honour of an employee‘s loyalty to the employer. Gratuity is usually paid to long serving employees. Gratuity is taxable in full, unless it is paid together with a retrenchment package to which it is part, in such circumstance an exemption applies.

Gross income (sect.8) (c) Commutation of amounts due under employment contract Where an employer terminates the services of the employee before the expiry of the contract and pays the amount due under the contract for the remaining period this is subject to PAYE as and when it is paid. (d) Retrenchment Pay When an employer seeks to make redundant his employees, such employer should draft a proposed retrenchment package which is submitted to the Minister responsible for Labour or Social Welfare for approval. Retrenchment package is gross income in the hands of an employee. Only approved retrenchment package qualifies for exemption. Retrenchment package includes Severance pay, Gratuity and any other payments associated with redundancy, but specifically excludes Cash In lieu of Leave and Pension receipts. One third of the retrenchment package is exempt subject to a minimum of USD , and to a maximum exemption of USD for 2015 tax year.

Gross income (sect.8) Example Chipo, Sarah and Chinedu were retrenched during the year and they received $9 000, $ and $ respectively. Calculate the exemptions attributable to each of them.

Gross income (sect.8) Solution Chipo Sarah Chinedu $ $ $ Retrenchment package Less: exemption (9 000) (note 1) (10 000) (20 000) Taxable amount Note 1. Chipo received an amount already below the minimum exemption of $10 000, thus the whole amount is not taxable. On the same note, Sarah‘s exemption of (1/3 *24 800) $ 8267 is below the minimum, thus an exemption of $10 000, is applicable. Chinedu‘s one third of package is above limit hence a maximum exemption is applicable.

Gross income (sect.8) 6.2.3 Fringe Benefits A fringe benefit is a payment by an employer to an employee or a director of a company in the course of employment over and above the employee‘s salary. It can be paid in cash or in kind. Where no cash is paid by the employer, the value of the benefit is also taxable. Valuation of a benefit for tax purpose is generally based on the cost to the employer for providing the benefit, except for housing and furniture benefit which is valued in reference to the value to the employee. (a) Passage benefit Passage benefit is journey undertaken by an employee, his spouse or child or one or more of them the cost of which is borne by the employer. The journey undertaken should be in connection with taking up or termination of employment or any other journey made by an employee, his spouse and children or one or more of them in so far as that journey is not made for the purpose of a business transaction of the employer. An employee‘s first journey on taking up employment and a first journey on termination of employment are exempted. Passage benefit is apportioned on time or usage basis if the journey is undertaken for dual purposes.

Gross income (sect.8) Example Mr Sadombo, who works for Alisto Engineering as a production manager, went to a business trip to Brazil in May He was accompanied by his wife and son. He incurred the following expenses: Hotel bookings and meals $2 500 Wife‘s touring $500 Paid for jumping castles for his son $120 Mr Sadombo spends 3/5 of his time in Brazil doing the business of his employer. Calculate Mr Sadombo‘s passage benefit.

Gross income (sect.8) Solution $ Hotel bookings and meals $2 500*2/ Wife‘s touring Son‘s jumping castles Taxable benefit

Gross income (sect.8) (b) Housing benefit If an employer grants to an employee free use of a house, the benefit is taxable in the hands of the employee. The benefit shall be valued according to open market rentals for a house that is located within a municipal area, if the house is not within the municipal area the benefit is measured as, the greater of 12.5% of the employee‘s salary or 7% of the cost of construction. If your conditions of service require you to stay in a company house, there is no benefit to you. Members of staff of a mission hospital or rural clinic are exempted on accommodation allowance, transport allowance and the value of quarters or residence. For the purpose of the exemption, a mission hospital or rural clinic is private hospital or rural clinic owned, operated or sponsored by a religious body or a rural district council. (c) Furniture benefit In the case where an employee is granted free use of furniture, the value of the benefit is deemed to be 8% of the cost of furniture. Usually, the benefit is granted together with the housing benefit.

Gross income (sect.8) Example George Mukarati is a finance manager with Matombo Quaries Pvt) Ltd, beginning April 2015 he was granted a benefit of staying in his employer‘s house in Greendale suburbs. The rentals for similar houses average $750 per month. George‘s employer deducts $100 for accommodation from his monthly earnings. Just before George occupied the house his employer furnished it for a total cost of $ The house was constructed for $ Calculate George‘s taxable benefit for the year ended 31 December 2015.

Gross income (sect.8) Example Solution $ Housing benefit ( )* Furniture benefit (8%*3 600) Total taxable benefit #Note: Since the house is within municipal area, the open market rentals are the only relevant information for valuation of the benefit.

Gross income (sect.8) (d) School fees benefit Where the employer pays school fees for the employee‘s children, the cost of the fees payable becomes taxable in the hands of the employee. In cases where the employer is a school and the employee‘s child is admitted or enrolled at the school without paying school fees or pays fees that are less than those paid by other students attending school, the foregone fees become taxable benefit in hands of the employee. In addition any school fees discounts or reductions granted because of the employer-employee relationship become taxable benefits in the hands of the employee. Where the employer is a school and the children of the employee are enrolled at the school, the taxable benefit in respect of forgone or subsidised fees to the employee has to be valued at its cost to the employer. This benefit is in respect of the waiver of the whole of any portion of tuition fees, levies and boarding fees that would otherwise be payable by a member of staff (teaching or non- teaching) for any child which is a student of that school or another school is gross income in the hands of the employee. With effect from 1 January 2013, half of such benefit is exempt to the employee. The exemption applies to only three children of the taxpayer.

Gross income (sect.8) Example Artwell is a teacher with Havana Private Primary School. He has 4 children learning at the school and the school offers education to his children free of charge. School fees and levies paid by other pupil‘s amounts to $1,300 per child per term. Artwell is on $1,000 monthly salary. Compute his 2015 taxable income.

Gross income (sect.8) Solution $ Salary (1 000*12) School fees benefit 1300*3* Less: exemption: 1300*3*3*50% (5 850) Taxable income

Gross income (sect.8) (e) Motoring benefit Where an employee is granted free use of a car, the benefit is measured based on the deemed cost to the employer in reference to the engine capacity of the car. The benefit arises where an employee use the vehicle for private purpose The following are the deemed cost in respect of the year of assessment Engine Capacity Deemed cost per annum US$ Less than 1500 cc cc 2000 – 3000 cc 3000 cc and above Where the period of use of the vehicle is less than a year, the deemed cost is reduced proportionately.

Gross income (sect.8) (f) Sale of a motor vehicle to an employee If an employer sells a motor vehicle to an employee, whether during or on termination of employment, the benefit to the employee is determined by the following formula: A – B, where, A represents the market value of the motor vehicle: B represents the cost at which the employee acquired the motor vehicle: If the motor vehicle was acquired before the 1st of January 2009, the cost represented by B in the formula shall be the final balance shown on the balances of the employer‘s books. Note#. Take note that no benefit arises if the motor vehicle is disposed to an employee who is above 55 years of age. Example Mrs Olivia joined Fire Engineers (Pvt) Ltd beginning of April 2015 as an Production manager, she is entitled to a company car Mazda BT-50, engine capacity 3 000cc, and a monthly salary of $ At the end of the year the employer purchased a new vehicle for her and gave her the option to purchase the Mazda BT-50 car for $5 000, the market value of the car is $ She took the option. Show her taxable benefit for the 2015 tax year.

Gross income (sect.8) Solution $ Salary (1800*9) Motoring benefit (9 600*9/12) Purchase of a motor vehicle ( ) Taxable income

Gross income (sect.8) (g) Interest benefit An interest benefit arises if an employee is granted an interest free loan or a loan on which interest is charged below the prevailing market rates. The benefit is calculated by multiplying the loan amount by following formula; LIBOR + 5% - A Where, LIBOR means London Inter -Bank Offered Rates; and A is the rate of interest being paid to the employer. No benefit arises if the loan extended to the employee does not exceed USD 100. A Loan extended to an employee for educational or technical training or medical expenses for the employee, spouse or children is however, exempt from tax.

Gross income (sect.8) (g) Interest benefit Exam tips! The following types of loans are tax exempted: loans which are below $100 loans used on education of employee or his/her family loans used on technical education of employee or his/her family loan used on medical costs of an employee or his/her family, Loans with an interest rate above Libor + 5%.

Gross income (sect.8) Example Mr Manjoro a marketing manager with Telkom Communications P/L was given a loan of $ in beginning of April Mr Manjoro is supposed to pay back the loan together with interest at the end of the year. He was being charged an annual interest rate of 3%. Libor is 2.5%. Calculate his taxable benefit for the year 2015. Solution Interest benefit ( ) %*10 000*9/12 = $337.50

Gross income (sect.8) (h) Share options An amount received by an employee on sale of shares offered to an employee pursuant to a share option scheme by his or her employer is gross income. The income is calculated by the following formula: A-(B+C) Where— A represents the value of shares at the time of exercise of the share option scheme; B represents the value of shares offered to the employee pursuant to the share option scheme; C represents the figure B to which the inflation allowance is applied, to which allowance is to be determined by the following formula:

Gross income (sect.8) ((D - E) x B)/E Where— D is the figure for the All-items Consumer Price Index issued by the Central Statistics Office at the time the employee exercises the share option; E is the figure for the All-items Consumer Price Index issued by the Central Statistics Office at the time when the shares were offered to the employees pursuant to a share option scheme. Note#. The share option benefit is tax exempt where the employee share ownership scheme or trust has been approved by ZIMRA

Gross income (sect.8) Example Dakarai was granted shares under an employer share option plan at 60 cents a share. The market value per share was 100 cents on the date of exercise. The inflation indexes were 1.3% and 1.75% on the date of share offer and exercise, respectively. Calculate her taxable income? Solution A-(B+C) = 100- {60 + (60 x ( )/1.3)} = 19.2c x = $1 920

Gross income (sect.8) (i) Entertainment allowance Any amount received by way of entertainment allowance which is paid to a person by his or her employer is taxable in the hands of the employee to the extent that such amounts are not expended on the business of the employer. (j) Export processing Zones employees Employees of licensed investors enjoy a benefit of being exempted on their benefits. The exemption is partial and is limited to 50% of the total taxable income (inclusive of the benefits) of an employee. A licensed investor is a taxpayer who manufacturers and exports at least 80% of his produce and is a holder of an export license issued by the Ministry of Industry and Commerce.

Gross income (sect.8) Example John Garufu works for Havena P/L a local company operating in agriculture sector and is a licensed investor. During the year ended 31 December 2015 he received the following amounts: $ Salary School fees paid by his employer for his son Airtime In addition Mr Garufu stayed in a company house in Marlborough; monthly rentals in the area are $800. He was allocated a BT50 engine capacity 3200 cc, at the beginning of the year. C Calculate his taxable income for the year of assessment.

Gross income (sect.8) Solution $ Total benefits: School fees Airtime allowance Motoring benefits Housing benefits (800*12) Total Salary Total benefits Total taxable income before exemption Less exemption the lessor of (50%*68 200) & (26 200) Taxable income

Gross income (sect.8) (k) Subsidized or free meals Where the employer provides subsidised meals to employees, the benefit is taxable in the hands of the employee. The benefit is the cost to the employer reduced by amounts recovered from an employee. If the employer runs a canteen as part of his business there is no benefit in the hands of the employees. Where the meals are acquired from outside the business of the employer, the benefit is taxable. (l) Other benefits All other benefits which accrue to an employee, with the exception of medical aid and medical expenses paid on behalf of the employee by the employer, are taxable. These include:- Use of telephone and cell phone. The provision of domestic workers including gardeners. The provision of security services The provision of clothing with the exception of protective clothing Fuel coupons - Taxable in the hands of employees if given to employees who are not enjoying a taxable motoring benefit.

Gross income (sect.8) 6.2.4 Pension receipts Pension receipts can be paid as a result of an employee reaching pensionable age or because an employee has withdrawn from a pension or benefit fund in the year of assessment. (a) Pension received on retirement On retirement a person would start to receive regular amounts. These regular pension amounts are included in gross income of an individual and taxed as received. Only portions of pension contributions that were not allowed as deduction will escape tax. Where a lump sum is paid on retirement, 1/3 the pension entitlement is exempt, the exempt part is known as pension commutation. A pension commutation is a receipt of capital nature.

Gross income (sect.8) Example Mushonga retired on 30 September 2015 at the age of 65 years and received the following: Lump sum $40 000 Monthly pension beginning October $200 Mushonga‘s estimated life expectancy is 10 years; During his tenure a total of $4 000 of his pension contributions was not allowed as deduction. Calculate his taxable income.

Gross income (sect.8) Solution Pension entitlement ($ *$200) = $64 000 Commutation 1/3* $21 333 Portion of contribution disallowed (4 000/120 months) =$33.33 per month. Lump sum receipt Less: exemption (21 333) Monthly pension 3*( ) Taxable income

Gross income (sect.8) (b) Pension received on withdrawal from a pension fund A person is said to have withdrawn from a pension or benefit fund or any other fund if the person dies, resigns from employment, or if the employee is made redundant or if the employer closes down his business. On withdrawal a person will be entitled to a refund of his pension contribution, by way of a lump sum receipt. A lump sum receipt is taxed at the highest marginal rate, i.e. at 50%.

Gross income (sect.8) Example Mr Makumbe who had served his employer for 5 years resigned with effect from 30 June He received a lump sum pension of $15 000, he used $5 000 to purchase an annuity on retirement. You are informed that during his last three years of employment, $5 000 of his pension contributions was not allowed as a deduction. Calculate his tax liability [5] Solution $ Lump sum receipt Less: retirement annuity (5 000) Less: pension contribution not allowed (5 000) Taxable income 50% # Note: The disallowed portion of contributions of $5 000 is deducted in full since the pension is paid once-off. 6.3 Exemptions (Covered-see chapter on exemptions-sect 14 a.r.w 14th Schedule)

6.4 Specific Allowable deductions (section 15) 6.4.1 Pension contributions An amount in respect of contributions made in the year of assessment to a benefit or an approved pension fund or the Consolidated Revenue Fund. Pension contribution, in most cases, is 7.5% of an individual‘s salary or emoluments. If the pension contributed is not given, apply 7.5% to the person‘s salary. The maximum contributions allowable for 2015 Tax Year are $5400 and $2700 for contribution to pension and retirement annuity funds respectively. 6.4.2 Arrears contributions Arrears contributions are contributions made by an employee in respect of past service with his or her employer to a pension fund established by the employer. The maximum allowable contribution is 8% of the person‘s annual salary or $1800, whichever is greater.

6.4 Specific Allowable deductions (section 15) 6.4.3 NSSA NSSA is a form of pension. 3.5% of a person‘s gross salary is deducted as NSSA, to a maximum monthly salary of US $700 for 2015 Tax Year. Thus for a person earning more than $700 will contribute $24.5 per month or $294 per annum. Public service employees however contribute 3% as NSSA with a maximum salary of $200 per month. The aggregated maximum permissible deduction in respect of pension contributions (i.e. Pension, benefit, arrears pension and NSSA), is $5400 per annum for 2015 Tax Year. The order of allowability being: pension contributions, areas contribution, RAF and NSSA.

6.4 Specific Allowable deductions (section 15) 6.4.4 Subscriptions Any subscription paid during the year of assessment by the taxpayer in respect of his continued membership in any period to any business, trade, technical or professional association, is allowed as a deduction. Examples include subscriptions paid to CIS, ACCA etc. Subscription to sporting or recreational clubs are not allowed. Also not allowed are subscription paid by students to professional bodies. 6.4.5 Tradesman tools The costs of tradesman‘s tools are allowed in full on purchase and on replacement (if in terms of the employment contract). Only qualified tradesmen such as journeymen are eligible for such deductions. Trainee and apprentices do not qualify for this deduction.

6.4 Specific Allowable deductions (section 15) 6.5 Prohibited deduction (see section on prohibited deductions sect.16) The following deductions are not allowed with respect to employment income. The cost incurred by any taxpayer in the maintenance of himself, his family or establishment. Examples of such expenses include: Funeral contributions loan repayments 6.6 Tax credits (see section on tax credits).

6.7 Administrative responsibilities under PAYE tax head Every business person who becomes an employer is required to apply to the Commissioner General for registration within 14 days of becoming an employer. The employer will be given the relevant tax deduction tables and informed of his/her obligations as an employer. Some of the obligations include: Calculation and deduction of PAYE in accordance with the tax deduction tables Remittance of PAYE to ZIMRA within 10 days after the end of the month during which the amount was withheld. Keeping accounting records for a period of at least six (6) years. Submission of the ITF 16 return which contains details on annual earnings, deductions, credits and PAYE for each employee within 30 days after the end of the year. You will note that failure to withhold any amounts which you are required to withhold renders you liable to the amounts due as well as penalties and interest.

Further reading: Distinguish between Final Deduction System(FDS) and Pay As You Earn(PAYE) systems of administrating tax on employment income. Practice Question Rutendo Kamukono(Portal).

Question 1 Rutendo Kamukono aged 49 is employed as a sales and marketing executive with Chando Kupisa Ice creams (Pvt) Ltd. Rutendo also sits on various corporate boards. She has presented you with the following income and expenditure statement for the tax year ended 31 December 2015.

$ Salary 12 000 Bonus 6 000 Commission 8 000 Holiday allowance 800 Director` fees 2 000 Property rentals 10 900 Income from market gardening project 9 200 Annuity receipt 900

EXPENDITURE Training expenses 4 500 Alimony to ex-husband 3 000 Subscriptions to marketing institute 200 Contributions to pension fund 600 NSSA contribution RAF contribution 700 Personal consumption 8 600 Wages for market gardening employee 1 200 Market gardening inputs Life insurance policies 680 Loan repayments 4 000 Donation to Marketing college 450

The following additional information is also provided: (i)The annual annuity receipt derives from an annuity she purchased in 2009 for $ The annuity is payable once a year over a 10 year period. (ii)In March 2015, Rutendo spent $1200 in medical expenses for her 62 year old husband Fatso. Fatso, who is partially disabled and unemployed. (iii)In January 2015, she took advantage of Chando Kupisa ice creams` loan facility by borrowing $ (iv)During the course of the year she received free dairy products from her employer amounting to $280. (v)The $4500 training expenses were incurred by Rutendo as tuition at a USA based marketing seminar, which she attended to familiarise herself with the latest developments in sales and branding techniques. Although the visit to USA was designed to enhance her sales skills, her employer did not pay for the visit, as it was a private arrangement.

(vi)In March 2015, Rutendo represented her employer at the Botswana Trade Fair. Whilst at the Fair, she gave an opening speech for which she was paid an honorarium in pula amounting to $900. (vii)Rutendo enjoys the free use of a fully furnished house, in the Harare leave suburb of Gunhill. The value of the furniture in the house is $8 000 and the open market rental for the house is $1 200 per month. (viii)Rutendo also enjoys the use of an Isuzu truck for both private and business purposes. The vehicle has an engine capacity of 3400 cc, and costs the employer $3 000 p.a to maintain. (ix)In December 2015, Rutendo parted company with Chando Kupisa ice creams (Pvt) Ltd. In return the company gave her a severance package of $ This amount includes the sum of $4 800, which was paid on the understanding Rutendo would not take up employment with a rival company in the Greater Harare area. In addition Rutendo Kamukono received her commuted pension amounting to $30 000, on 31 December 2015.

REQUIRED: Calculate Rutendo` s income from all sources for the tax year ended 31 December 2015, together with the tax payable from employment. (16.5) Calculate tax payable from income from Trade and Investment. (3.5)

Solution: Rutendo Kamukono Computation of tax payable from employment income for the year ended 31 December 2015

TAX LAW & PRACTICE(CUAC 212)

Similar presentations

Presentation on theme: "TAX LAW & PRACTICE(CUAC 212)"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

TAX LAW & PRACTICE(CUAC 212)

Similar presentations

Presentation on theme: "TAX LAW & PRACTICE(CUAC 212)"— Presentation transcript:

Similar presentations

About project

Feedback