Lesson 22: CGT Administration and Practice in Zimbabwe

Instructor lesson plan and teaching materials (en-US). Date: 2026-03-16. Jurisdiction: Zimbabwe (with UK + South Africa comparative notes).

Executive summary

This lesson equips learners to operate Zimbabwe’s Capital Gains Tax (CGT) system as an administrative-and-practice workflow, not just as a computation exercise. It centers on how the Zimbabwe Revenue Authority (ZIMRA) administers CGT through (i) withholding collection architecture involving “depositaries” (conveyancers, estate agents, financial institutions, specified registrars, etc.), (ii) clearance certificates that gate registration of transfers, (iii) returns, assessments, payment rules, and refunds, and (iv) objection/appeal pathways that borrow heavily from the Income Tax Act procedures. Primary legal anchors include the Capital Gains Tax Act [Chapter 23:01] (especially Part IIIA withholding, sections 25–26 objections/payment, and section 30A registration gating), the Income Tax Act [Chapter 23:06] (procedural engine for objections/appeals and “pay now argue later”), and the Revenue Authority Act [Chapter 23:11] (ZIMRA mandate + expedited recovery route).

From a practitioner’s perspective, the most exam-relevant and practice-relevant “pressure points” are: (a) valuation risk and ZIMRA’s fair market value powers, (b) “who must remit” and the 3rd-working-day deadlines, (c) the difference between CGT withholding vs final CGT, including credits/refunds and time limits, (d) the 30-day objection and 21-day appeal windows (and “deemed disallowance” at 90 days in practice), and (e) enforcement escalation (appointment of agents; expedited magistrates-court recovery).

This lesson also uses Zimbabwean case law to show courts’ approach to administration limits and tax-evasion fact patterns: Sabeta v Commissioner General, ZIMRA ZWHHC 79 (mandamus compelling ZIMRA to assess/receive CGT and issue certificate; ZIMRA cannot invent extra-statutory conditions), and property-sale “undervaluation to evade duty/tax” disputes such as Nomalanga Sibanda v Nyathi (HB 94/09) and Chitsinde v Musa (CS 129/08) (illegality/res judicata consequences where multiple agreements or false consideration are used to defeat stamp duty/CGT).

Comparative notes (UK and South Africa) are used to highlight design trade-offs: tight property CGT reporting/payment windows (UK) and “pay-now-argue-later” collection strength balanced by suspension mechanisms (South Africa)—useful for policy discussion and for understanding why Zimbabwe’s system is structured around withholding + registration gating.

Learning objectives and suggested class structure

Learning objectives

By the end of Lesson 22, learners should be able to:

Explain ZIMRA’s legal mandate and limits when administering CGT, including how ZIMRA is positioned as the State’s agent for assessing/collecting/enforcing taxes under scheduled Acts.

Map the end-to-end CGT administration lifecycle for a “specified asset” disposal—from transaction documentation and withholding to assessment, payment, clearance/registration gating, risk-based verification (valuation), dispute resolution, and enforcement escalation.

Apply Zimbabwe’s procedural rules to objections and appeals for CGT, including: objection within 30 days; ZIMRA determination and “deemed disallowance” at 90 days (practice guidance); appeal notice within 21 days; and non-suspension of payment pending dispute absent direction (“pay now argue later”).

Advise practitioners and clients on compliance: recordkeeping (six-year minimum), depositary registration/returns/penalties, and document packs for CGT clearance certificates.

Evaluate policy trade-offs in CGT administration (equity, efficiency, compliance cost, avoidance risk, revenue yield), and compare Zimbabwe’s administrative design to UK and South Africa.

Suggested class structure

A 2.5–3 hour session works well:

Pre-class reading (send 48 hours before): Capital Gains Tax Act [Chapter 23:01] excerpts on Part IIIA (withholding), sections 25–26, and section 30A; ZIMRA guidance on CGT clearance; ZIMRA guidance on objections and appeals; ZIMRA recordkeeping requirements.

In-class: (i) short lecture + annotated walkthrough, (ii) a workflow simulation (conveyancer/depositary + seller + buyer + ZIMRA), (iii) a mini dispute exercise (draft a compliant objection letter + decide whether to request payment suspension / negotiate). Ground these in statutory deadlines and document-pack discipline.

Lecture script and instructor notes

Framing hook and definitions

Instructor opening (3–5 minutes):
“CGT compliance fails less often because people can’t compute a gain, and more often because the workflow breaks: wrong documents, missed deadlines, unclear responsibility for payment/withholding, and delayed clearance that blocks transfer registration. Today is about controlling that workflow.”

Define (on board) the operational core terms: - Specified asset includes immovable property and marketable securities (per ZIMRA guidance).
- Depositary is a legally defined withholding/intermediary role and includes conveyancers/legal practitioners/estate agents who hold sale proceeds, building societies, the Sheriff/Master, stockbrokers/financial institutions, certain actors in cessions/condominiums, and specified registrars for certain rights registrations.
- Capital gains withholding tax is a withholding mechanism charged under Part IIIA, distinct from the final assessment; it is creditable against final CGT.

Role of ZIMRA in administering CGT: statutory basis, powers, duties, and limits

Statutory basis and mandate:
Under the Revenue Authority Act, ZIMRA (the “Authority”) acts as agent of the State in “assessing, collecting and enforcing payment” of revenues under the scheduled Acts, and it may exercise functions/powers that scheduled Acts confer. This frames CGT administration as part of ZIMRA’s wider domestic tax mandate rather than an isolated tax.

Enforcement interaction and expanded recovery tool:
Even though each tax Act contains recovery mechanisms, Zimbabwe’s Revenue Authority Act creates an expedited magistrates-court recovery procedure for “any outstanding tax or duty, including interest and any penalty” across multiple Acts including the Capital Gains Tax Act, Income Tax Act, Stamp Duties Act, and VAT Act.
Key practical implications you should lecture explicitly: - ZIMRA can apply on notice in a Magistrates Court for an order of payment and attachment of movable property to satisfy the tax debt once tax becomes due and remains unpaid.
- The application is supported by affidavit stating service of assessment and failure to object or failure to appeal within prescribed time (depending on posture).
- The statute includes a six-year limit for using this expedited route (administrative limitation).
- Critically for risk: the statute also states an appeal against an order under this procedure does not suspend operation of the order and bars stays of execution.

Limits and legality principle (case law anchor): Sabeta
Use Sabeta v Commissioner General, ZIMRA ZWHHC 79 as the “administrative law guardrail” case.
Explain the facts briefly: conveyancing and transfer were blocked because ZIMRA refused to assess/receive CGT and issue a clearance/withholding certificate due to alleged unpaid CGT by a prior owner.
Teach the principle: courts can compel ZIMRA to perform statutory duties and ZIMRA cannot effectively add “extra-legal conditions” to assessment/collection where the statute prescribes the process.
Teach the remedy: the High Court ordered ZIMRA to assess CGT within ten days, receive payment from the Deputy Sheriff, and issue a CGT withholding tax certificate (mandamus), with each party bearing its own costs.

Administrative procedures in Zimbabwe CGT practice

This segment is best taught as a workflow with statutory “switch points.”

Registration and taxpayer/depositary onboarding

Taxpayer registration (practical):
ZIMRA’s CGT clearance process expects basic taxpayer registration documentation (e.g., REV1 in the clearance document pack).

Depositary registration (legal):
A person acting as a depositary “in the ordinary course of business” must apply to the Commissioner for a registration certificate within 30 days after commencing that business (or transitional timing for existing businesses).

Teaching note: emphasize that “depositary compliance” is a systemic control. Audits often target the intermediary because they are easier to locate than taxpayers who have already exited the transaction.

Withholding and remittance architecture: who pays, when, and how

Primary rule (depositary withholding):
Where a depositary pays any amount held as depositary to/for the credit of the seller in consequence of sale/transfer, the depositary must withhold capital gains withholding tax and pay it to the Commissioner no later than the 3rd working day from payment (unless extended for good cause).

Documentary output (certificate to payee):
Where withholding occurs, the depositary must give the payee a certificate (approved form) showing depositary identity, payee identity, property particulars, and amount withheld—critical for later credits/refunds.

Multiple depositaries:
If two or more depositaries hold parts of the price, they may be severally liable for the withholding amount (up to amounts held), and payment by one reduces/absolves others pro tanto.

Secondary rules (failure modes): - If withholding was not done and no clearance certificate was issued, an agent receiving funds on behalf of payee must withhold and pay by the 3rd working day.
- If neither depositary nor agent withholds and no clearance certificate exists, the payee must pay the amount that should have been withheld by the 3rd working day.

Teaching note: learners should view this as a three-layer fail-safe: depositary → agent → payee, designed to reduce leakage.

Clearance certificates and “registration gating”

Clearance certificate (withholding relief):
A depositary need not withhold if a clearance certificate is obtained before paying amounts to seller, and the Commissioner is satisfied either no CGT likely payable or CGT likely less than withholding, and adequate arrangements exist for payment. The certificate can be issued on terms/conditions (including returns/interim returns).

ZIMRA’s practical clearance process (immovable property focus):
ZIMRA requires buyer and seller (or authorized reps) to attend interviews and provide a document pack (e.g., CGT1, REV1, agreement of sale, deed/share certificate, proof of payment, IDs, utilities when claiming rollover/exemption, POA if abroad). ZIMRA states the clearance certificate is issued once amounts due are paid and the transaction is finalized, and it is used to facilitate transfer to new owner.

Transfer-registration prohibition where CGT not withheld (hard gate):
Where CGT is not withheld in terms of Part IIIA, the Registrar of Deeds (and, for shares, the responsible share-transfer registrar) must not execute/attest/register acquisition unless a ZIMRA certificate is submitted stating CGT payable has been paid.

Teaching note: this is the core “administration design” lever—Zimbabwe ties CGT compliance to the property rights registry to increase collection probability.

Returns, assessments, payment rules, and recordkeeping

Returns and assessments (procedural import from Income Tax Act):
The CGT Act applies specified provisions of the “Taxes Act” to CGT for returns/assessments, including the Commissioner’s ability to require returns, seek information, access public records, demand production of documents/evidence, and issue estimated/additional assessments (by reference to the incorporated provisions).

When CGT becomes due and payable:
CGT is generally payable within 30 days from (i) accrual of capital gain, or (ii) the date formal title is transferred, whichever is earlier—subject to earlier payment points under withholding rules.

Depositary returns/periodic reporting:
Depositaries (including conveyancers, estate agents, stockbrokers, financial institutions, etc.) must submit prescribed statements/returns at least monthly (or other permitted intervals), and withholding payments are accompanied by prescribed returns in certain cases.

Penalties for non-payment by depositary/agent and mitigation:
A depositary/agent failing to withhold/pay is liable for (a) the amount that should have been withheld plus (b) a further amount equal to 15% of that withholding tax. The Commissioner may waive all/part of the 15% uplift if satisfied there was no intent to evade.

Credits and refunds:
Withholding tax paid is credited against final CGT on the same capital gain; any excess is refundable.
For overpaid withholding, refunds require a claim within six years of payment; interest (rate by statutory instrument) is payable if ZIMRA does not refund within 60 days of claim or completion of assessment (whichever later), unless delay is due to taxpayer’s defective return/error.

Recordkeeping minimum standard (cross-tax compliance rule):
ZIMRA states taxpayers must keep proper books/records (in English unless dispensation), including invoices, credit/debit notes, bank material, computer records, etc., and must retain records for at least six years, available for inspection and retrievable (including from computers).
This aligns with statutory recordkeeping requirements such as Income Tax Act section 37B (duty to keep records in English and retain for six years).

Interaction with other tax types and administrative cross-effects

This is where learners often confuse “tax types” versus “administrative levers.”

Income tax procedural engine for CGT disputes:
CGT objections/appeals borrow the Income Tax Act framework: objection within 30 days (CGT Act section 25 + ITA section 62 procedure), burden of proof for exemptions/deductions, and the appeal path through High Court/Special Court and upward appeals.

“Pay now argue later” in Zimbabwe (practical reality):
Income Tax Act section 69 states payment is not suspended pending objection/appeal unless the Commissioner directs (with terms/conditions). Since CGT Act section 25 applies sections 63–70 mutatis mutandis, this principle is crucial in CGT disputes (cash-flow planning).
Additionally, the Revenue Authority Act’s expedited recovery procedure reinforces a strict collection posture, including non-suspension of execution for orders under that route.

PAYE intersection (conceptual):
The CGT Act’s definition section includes an editorial case note indicating that proceeds of shares sold by employees to meet PAYE obligations in an employee share trust scheme were treated as liable for CGT (Old Mutual Zimbabwe Ltd v Commissioner-General of ZIMRA & ZIMRA). Use this as a discussion prompt about how “why funds were sold” does not necessarily change characterization of proceeds for CGT.

Stamp duty intersection and priority of truthful consideration:
Stamp duty is transaction-document sensitive. The Stamp Duties Act makes agreements intended to evade duty void.
Courts treat “undercutting consideration” (to reduce stamp duty and CGT) as illegality that defeats enforcement and can create res judicata barriers. Use: - Nomalanga Sibanda v Nyathi (HB 94/09): the court treated agreements aimed at avoiding CGT/stamp duty as illegal/void, applying section 44, and referenced persuasive SA authority (Brits v Van Heerden) as analogy.
- Chitsinde v Musa (CS 129/08) (as reflected in later proceedings): multiple sale agreements with different prices were used to avoid correct CGT/stamp duty; the court recognized a “single turpious transaction” and treated the arrangement as illegal, impacting enforceability and later proceedings through res judicata analysis.

VAT and other taxes (administrative integration):
ZIMRA’s recordkeeping guidance explicitly ties recordkeeping duties across Income Tax and VAT (VAT Act section 57 is referenced as part of the legal basis for recordkeeping obligations). Use this to teach compliance “systems thinking”: a CGT audit frequently requests VAT-style documentation (invoices, statements, bank trails).

Policy considerations in CGT administration

Teach policy using Zimbabwe’s design choices as “evidence.”

Equity:
Zimbabwe’s CGT rate structure differentiates between assets acquired before/after a cutoff (ZIMRA guidance describes 20% of capital gain versus 5% of gross capital amount depending on acquisition timing). Discuss horizontal equity issues (similar gains taxed differently based on acquisition date) and vertical equity issues (impact on high-value property owners).

Efficiency and compliance cost:
Administrative efficiency is increased by using depositaries and registrars as enforcement nodes, but compliance costs rise due to interviews, document packs, valuation evidence, and timing risk. ZIMRA explicitly requires interviews and extensive documentation for clearance processing, which can delay settlement/transfer.

Avoidance risk and valuation disputes:
ZIMRA states it may invoke section 14 power to uplift values or request a valuation report where declared values are outside fair market values, especially in related-party transfers or deliberate under-declaration. This is an anti-avoidance posture built into administration.

Revenue yield and enforcement posture:
Zimbabwe combines (i) withholding within 3 working days, (ii) registration gating, and (iii) expedited recovery and attachment powers, which tends to increase effective collection yield compared to systems relying solely on voluntary reporting.

International/non-resident issues (architecture):
The CGT base is framed around “gross capital amount” from a “source within Zimbabwe.” Use this to discuss how source-based taxation interacts with non-resident sellers and cross-border disposals, and why withholding/intermediary controls become more important when the seller is offshore.
Also note that certain newer provisions (e.g., special CGT provisions relating to mining titles) reflect policy pressures around extractives and ownership, illustrating how CGT can be used as a broader policy tool beyond classic real estate/share sales.

Tables requested: administrative steps, timelines, and costs (Zimbabwe-focused, with comparative reference columns)

Instructor note: be transparent that “costs” are practitioner-estimated cost drivers (fees, valuations, delays) rather than statutory tariffs, except where statutes prescribe penalties/interest mechanisms.

Mermaid flowchart requested: administrative lifecycle from assessment to collection and appeal (Zimbabwe)

flowchart TD
  A[Disposal of specified asset\n(immovable property / marketable security)] --> B[Identify parties + depositary\n(conveyancer/estate agent/financial institution/etc.)]

  B --> C{Is depositary holding sale proceeds?}
  C -->|Yes| D[Withhold CGT withholding tax\nand remit to ZIMRA\nby 3rd working day]
  C -->|No or withholding failed| E{Did an agent receive funds\nfor the payee?}
  E -->|Yes| F[Agent must withhold + remit\nby 3rd working day]
  E -->|No| G[Payee must self-pay amount\nthat should have been withheld\nby 3rd working day]

  D --> H[Depositary issues withholding certificate\nto payee]
  F --> H
  G --> I[Prepare/submit CGT return\nand required documents]

  B --> J{Apply for clearance certificate\nbefore paying seller?}
  J -->|Yes| K[Submit info to ZIMRA\nCommissioner may issue clearance\n(possibly with conditions)]
  J -->|No| L[Proceed under withholding route]

  K --> M[Transaction proceeds\nwith reduced/no withholding]
  H --> N[ZIMRA assessment process\n(return review, valuation checks)]
  I --> N
  M --> N

  N --> O[Assessment issued / tax confirmed]
  O --> P[Pay CGT due\n(typically within 30 days\nor earlier via withholding)]
  P --> Q[ZIMRA issues CGT clearance / payment certificate]

  Q --> R{Transfer/registration required?}
  R -->|Yes| S[Registrar registers transfer ONLY if\nZIMRA certificate submitted\n(where CGT not withheld)]
  R -->|No| T[Close file + retain records\n(min 6 years)]

  O --> U{Dispute?}
  U -->|Yes| V[Objection in writing\nwithin 30 days]
  V --> W[ZIMRA determination\n(target 90 days; may be deemed disallowed)]
  W --> X[Appeal notice within 21 days\n(High Court / Special Court)]
  X --> Y[Payment generally not suspended\npending dispute unless Commissioner directs]
  Y --> Z{If unpaid after due dates}
  Z --> AA[Recovery escalation:\n- appoint agent (garnishee-like)\n- expedited magistrates court s33A\n- attachment of movables]
  T --> End[End]
  S --> End
  AA --> End

Practical templates and practitioner tools

These templates are designed to be “classroom usable” and aligned to Zimbabwe’s statutory workflow. Adapt letterheads and statutory references to your firm/organization.

Template: CGT clearance request (seller/buyer or conveyancer to ZIMRA)

Subject: Application for Capital Gains Tax Clearance Certificate – Disposal/Transfer of [Property / Specified Asset]

To: The Commissioner-General, Zimbabwe Revenue Authority (ZIMRA)
From: [Name], [Capacity: Seller / Buyer / Conveyancer / Authorized Representative]
Date: [Insert]
Re: [Asset description, stand number/title deed/share certificate details]

1. Transaction summary
   We request issuance of a Capital Gains Tax clearance certificate in respect of the disposal/transfer of the specified asset described above. This request is made to facilitate compliance with the CGT withholding/clearance mechanism and to enable registration/transfer processing where applicable.

2. Parties
   Seller: [Name, ID/Reg No., address]
   Buyer: [Name, ID/Reg No., address]
   Depositary (if applicable): [Conveyancer/estate agent/financial institution], [registration details]

3. Documents attached (tick and list)

4. CGT1 (Capital Gains Tax return)
5. REV1 (ZIMRA registration form)
6. Agreement of sale (copy + original)
7. Title deed / deed of transfer / share certificate (copy + original)
8. Proof of payment / bank trail
9. National IDs (copy + original)
10. Utility bills (if claiming rollover/exemption where required by ZIMRA practice)
11. Valuation report (commercial property or on request / where FMV risk exists)

12. Power of attorney/notarial authority (if represented)

13. Declaration and undertakings
    We confirm that information supplied is complete and accurate to the best of our knowledge and that we will comply with any conditions attached to the clearance certificate, including filing any interim/final returns required for assessment.

14. Contact and interview availability
    We note that ZIMRA may require separate interviews of buyer and seller/representatives; please advise interview date/time.

Signed: ___
Name / Capacity / Contact

Template: Depositary withholding notice (internal instruction + client-facing notice)

Title: Notice of CGT Withholding and Remittance by Depositary (Part IIIA)

Depositary: [Name, address, registration certificate no.]
Seller/Payee: [Name, ID/Reg]
Asset: [Property/Share details]
Payment date: [Insert]

1. Under the Capital Gains Tax Act withholding framework, as depositary we are obligated to withhold capital gains withholding tax from amounts paid to/for the credit of the seller and remit to ZIMRA no later than the 3rd working day from the payment date (unless extended for good cause).

2. We will remit:

3. Gross amount held: [ ]
4. Withholding tax withheld: [ ]

5. Net amount payable to seller after withholding: [ ]

6. We will issue the payee a withholding certificate stating required particulars (depositary/payee identities, asset particulars, amount withheld).

7. If a clearance certificate is issued by ZIMRA authorizing reduced/no withholding, this notice will be replaced by a clearance-based settlement instruction.

Depositary authorized signatory: ___

Template: Assessment response / objection letter (CGT)

Subject: Objection to Capital Gains Tax Assessment – [Taxpayer name / Asset / Assessment ref]

To: The Commissioner-General, ZIMRA
From: [Taxpayer / Legal practitioner]
Date: [Insert]

1. Assessment challenged
   We object to the CGT assessment dated [date] received on [date], reference [ ]. This objection is lodged within 30 days as required.

2. Grounds of objection (must be clear, written, and evidence-supported)
   Ground 1: [e.g., incorrect valuation / improper FMV uplift / wrong classification of exemption]
   Ground 2: [e.g., deductions improperly denied / computation error]
   Attach: [valuation evidence, contracts, proof of acquisition costs, exemption proof]. (Reminder: ZIMRA may invoke fair market value powers where declared value is outside market norms.)

3. Relief sought
   We request that the assessment be reduced/altered as follows: [detail].

4. Payment pending objection/appeal
   We note that the obligation to pay tax is generally not suspended pending objection/appeal unless directed otherwise by the Commissioner and subject to conditions. We therefore request [either: confirmation of payment plan / or direction suspending payment] on the following basis: [cash-flow, merits, security offered].

Signed: ___

Practitioner compliance checklist (Zimbabwe CGT administration)

File opening and onboarding - Confirm whether transaction involves a “specified asset” (immovable property / marketable security).
- Identify depositary status and ensure depositary registration obligations are met (registration certificate within 30 days where applicable).

Withholding controls - Confirm whether you are holding any part of price as depositary; if yes, prepare withholding computation and remittance plan for 3rd working day deadline.
- If relying on clearance certificate, file early (before releasing funds) and document approval and conditions.
- Issue withholding certificate to payee and store copy in file for credit/refund support.

Clearance + registration gating - Ensure CGT clearance certificate process is satisfied with the complete ZIMRA document pack (CGT1, REV1, IDs, sale agreement, deed/share certificate, proof of payment, etc.).
- Where CGT not withheld under Part IIIA, confirm ZIMRA payment certificate is available before transfer registration (Registrar will not register without it).

Dispute readiness - Diary: objection due 30 days from assessment notice; appeal notice due 21 days after objection decision/deemed decision.
- Plan for payment pending dispute (default = pay unless directed otherwise).

Records - Retain records minimum 6 years; ensure electronic records are retrievable and inspection-ready.

Assessment materials

Multiple-choice questions (with answers)

Question 1
Under Zimbabwe CGT withholding rules, when must a depositary remit capital gains withholding tax to ZIMRA after paying the seller?
A. Within 30 days of signing the agreement
B. Within 7 days of payment
C. No later than the 3rd working day from the date of payment
D. Only after ZIMRA issues an assessment
Answer: C

Question 2
If neither a depositary nor an agent withholds CGT withholding tax and no clearance certificate exists, who must pay the withholding tax amount to ZIMRA?
A. The buyer
B. The payee (seller receiving the amount)
C. The Registrar of Deeds
D. The Master of the High Court
Answer: B

Question 3
Which statement best reflects the rule on payment pending objection/appeal (as applied to CGT via imported procedure)?
A. Payment is automatically suspended once an objection is filed
B. Payment is not suspended unless the Commissioner directs otherwise, possibly with conditions
C. Payment is always suspended until the Supreme Court decision
D. Payment is suspended only if the taxpayer is a company
Answer: B

Question 4
Which of the following is a potential consequence where parties deliberately understate consideration in a property sale to evade stamp duty/CGT?
A. The agreement remains enforceable, but penalties apply later
B. The agreement may be treated as illegal/void, defeating enforcement
C. Only the buyer is liable for a fine; the contract stands
D. ZIMRA must issue clearance if the parties agree to correct it later
Answer: B

Question 5
In Sabeta v Commissioner General, ZIMRA, what administrative-law remedy did the court grant against ZIMRA?
A. A declarator that CGT is unconstitutional
B. A mandamus compelling ZIMRA to assess/receive CGT and issue a certificate
C. An interdict preventing ZIMRA from collecting CGT
D. A damages award against ZIMRA for lost profits
Answer: B

Short-answer questions

Question 1
Explain the difference between (i) capital gains withholding tax and (ii) final CGT, and describe how credits/refunds work.
Model points: Withholding collected by depositary/agent/payee is credited against final CGT on same gain; excess refundable; withholding certificate evidence; refund claim time limits and interest if delayed.

Question 2
List the key statutory deadlines a practitioner must diary in a standard CGT dispute (objection, determination, appeal, payment posture).
Model points: objection 30 days; determination target 90 days (practice guidance, deemed disallowance); appeal notice 21 days; payment not suspended absent Commissioner direction.

Question 3
Identify two situations where ZIMRA may challenge declared property value and explain the legal basis.
Model points: related-party sale affecting price and deliberate under-declaration; ZIMRA may invoke section 14 power to uplift/call valuation; grounded in ZIMRA guidance and fair market value rule.

Case study (with model answer)

Scenario
A seller and buyer sign an agreement of sale for a house. The conveyancer holds the purchase price in trust. The agreement price appears below neighborhood market levels. The conveyancer plans to pay the seller on Friday. The seller asks the conveyancer not to withhold CGT, saying “ZIMRA will clear it later,” and requests immediate release of funds. No clearance certificate has been obtained. Meanwhile, ZIMRA previously raised an unrelated assessment against the seller, which the seller is disputing. The seller also proposes signing a “side letter” showing the real higher price while keeping the lower price in the main agreement “to reduce taxes.”

Tasks
1) As the conveyancer, outline your CGT compliance steps for the Friday payment.
2) Identify risks and illegality issues with the “side letter” plan.
3) If ZIMRA later issues an assessment the seller disputes, outline the objection/appeal steps and payment posture.

Model answer (structured)

1) Compliance steps: As depositary holding and paying sale proceeds, the conveyancer must withhold CGT withholding tax and remit to ZIMRA no later than the 3rd working day from payment, unless a clearance certificate is obtained before payment. Therefore, either (a) file for clearance certificate urgently and only release funds consistent with the clearance outcome, or (b) withhold and remit, then issue the payee withholding certificate and retain evidence for later credit/refund.

2) Risks/illegality: Understating consideration to defeat stamp duty/CGT risks rendering the agreement void/illegal (agreements to evade duty are void under Stamp Duties Act section 44), and Zimbabwean cases show courts treat such structuring as a “turpious” single transaction, defeating enforceability and creating severe litigation consequences. The correct approach is truthful disclosure and valuation support, acknowledging ZIMRA’s FMV powers.

3) Dispute steps and payment posture: If assessed, the seller has 30 days to lodge a written objection stating grounds; ZIMRA practice guidance indicates determination within 90 days or it may be deemed disallowed; appeal notice must be lodged within 21 days after objection decision/deemed decision; and payment is generally not suspended pending objection/appeal unless the Commissioner directs otherwise (so the seller must budget for cash-flow or seek a direction/arrangement).