No. 1/2019 Finance international financial institutions, and “bond coins” shall be construed accordingly; “legal tender other than foreign currency” means bond notes and coins, or money paid by means of an electronic transfer of funds through an account (other than a nostro foreign currency account) with a banking institution; “nostro foreign currency account” means any account designated in terms of Exchange Control Directive RT/120 of 2018, held with a financial institution in Zimbabwe, in which money in the form of foreign currency is deposited from offshore or domestic sources.”. 20 New section inserted after section 38 in Cap. 23:12 With effect from the 1st January, 2019, the Value Added Tax Act [Chapter 23:12], is amended by the insertion after section 38 of the following section— “38A Civil penalty for breach of section 38(4a) (1) As soon as it comes to the notice of the Commissioner that a registered operator has failed to comply with section 38(4a), the Commissioner shall, having given the operator a prior right of reply at least seven (7) days before the service of the order, serve upon the operator notice of an assessment in terms of section 31 of double the amount of tax payable in the foreign currency concerned, which shall be payable in the foreign currency concerned (hereinafter called “the primary civil penalty”): Provided that if the amount assessed is in a foreign currency other than the United States dollar, the registered operator may tender instead the equivalent amount of that tax in United States dollars, being an amount obtained by applying the international cross rate of exchange of the first-mentioned currency for the United States dollar prevailing on the day the tax concerned becomes due. (2) A registered operator upon whom the Commissioner has served a notice of assessment in terms of subsection (1) and who fails without just cause to comply with the notice within the first seven (7) days of the period of one hundred and eighty-one (181) days shall, if the registered operator continues to be in default, be guilty of an offence and liable on conviction to a fine not exceeding level 10 or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment. (3) The primary and secondary civil penalty shall be paid into and form part of the funds of the Consolidated Revenue Fund.”. 21 Repeal of section 40 of Cap. 23:12 Section 40 of the Value Added Tax Act [Chapter 23:12] is repealed. PART IV Capital Gains Tax 22 Amendment of section 21 of Cap 23:01 With effect from the year of assessment beginning on the 1st January, 2007, section 21 (“Provision for sales of principal private residences”) of the Capital Gains Tax Act [Chapter 23:06] is amended by the repeal of subsections (2) and (3) and the substitution of­— 12 2019