Introduction Due to globalization, many developing countries have increased the opening of borders for business with international companies. Such cross-border business has helped significantly in economic development, whilst also growing immensely in intra-group business transactions due to large amounts of foreign direct investment. Meanwhile there has been an exponential growth in tax issues that have been arising from profit shifting by multinational enterprises (MNEs) from high tax juris ...
Tropical cyclone Idai donation will save lives
Introduction A furious Tropical Cyclone Idai has claimed the lives in Chimanimani and Chipinge in Manicaland Province. Others are still missing and frantic efforts are being made to rescue the stranded. The cyclone has left a trail of destruction on roads, bridges and homes making rescue efforts a herculean task. It is in times like these that donations towards a humanitarian effort are called upon. It is on this background that we implore the business sector to donate towards the affected in ...
Separation between business and private finances
Introduction A key principle in running a successful business is the maintenance of proper business records of income and expenditure. This enables owner(s) not only be able to read into the performance of the business but also the commercial and regulatory environments dictate this as a good practice. Aligned to this, is a principle recognizing a company as a separate person altogether from its owners. This very act of separating the business from its owners is often a challenge in small bus ...
Creditor hair cut taxman gets a share of the pound
Introduction Most businesses in Zimbabwe are saddled with debts emanating from supply of goods, services and money. In order to lessen the debt burden, some may work out a debt settlement arrangement with their creditors or lenders, such that any portion of the debt reduced by the settlement is considered discharged or forgiven without the debtor having to offer anything in return, or offering something less in value than the debt outstanding. When that happens, the debtor cannot just go off ...
Tax issues of medical claims
Introduction 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 competed by the Health Service Provider for an onward refund by the medical insurer. Developments in the country however make the Health Service Providers having to wait for a long period span ...