Frxaxce (lrio. 2) f{o. 9 20ls Anzendtnents to Incorne Tax Act fChapter 3 23:Ofl Amendment of section 80 of Cap.23:06 With effect from the lst February,2009 (and notwithstanding anything in the Prescription Act fChapter B;/11), section 80 ("Withholding of amounts payable under conftacts with State or statutory corporations") of the Income Tax Act fChapter 23 :06] is amended by the insertion of the fbllowing subsection after subsection (10)"(11) Where a statutory body, quasi-Governmental institution or registered taxpayer pays to the Commissioner an amount referred to in subsection (7)(a) for failure to pay any amount required to be withheld from a payee in terms of this section, it shall have the right, within twenty-four months from the date on which payment should have been made if the amount had been withheld in terms of subsection (2), to recover that amount from the payee: Provided (a) that- the period of twenty-four months specified in this subsection is additional to any period calculated from the date on which any payment referred to in subsection (7)(a) was made between the lst February, 2009 and the date of commencement of this Act; (b) the statutory body, quasi-Governmental institution or registered taxpayer concerned shall not be entitled to recover from the payee any amount referred to in subsection (7Xa) or (10).". 4 New section substituted for section 988 of Cap. 23:06 With effect from the I st January, 20 I 6, section 23:06) is repealed and substituted "988 by- 9 88 of the Income Tax Aet lC h apt e r Transactions between associates ( 1) For the purposes of this section, where a, person sngages directly or indirectly in any transaction, operation or scheme (hereinafter referred to as a controlled transaction), with an associated person, the amount of taxable income derived by a person that engages in that transaction shall be consistent with the arm's length principle, where the conditions of the controlled transaction do not differ from an uncontrolled transaction, that is to say, from ihe conditions that \,vould have applied between independent persons, in cornparable transactions carried out under comparable circumstances. (2) Any amount of income that would have accrued to either of the associated persons in a controlled transaction and been taxable in Zimbabrve, shall, in the absence of the arm's length principle in that transaction which resulted in the avoidance, reduction or postponement of the tiability to tax of either or both of them for any year of assessrtent, be included in the taxable income of either or both of them and be liable to be taxed accordingly. (3) The cletermination of whether the conditions of a controlled transaction betr,veen associated persons are consistent with the arrn's length principle, and of the quanturn of any tax payable under subsection (2), are prescribed in the Thirty-Fifth Schedule. (a) Subsection ( 1) also applies where a person (whether or not an associatedperson) who is resident in Zimbabr,ve engeges in any transaction witlr a person resident outside Ziwtbabrve in a jurisdiction considered by the Comnrissioner-General to provide a taxable benefit in relation to that transaction. r82