2019 Finance No. 1/2019 9 Amendment of section 77 of Cap. 23:06 With effect from the year of assessment beginning on the 1st January, 2019, section 77 (“Recovery of tax”) of the Income Tax Act [Chapter 23:06] is amended by the insertion of the following subsection after subsection (7)— “(8) If, in Zimbabwe or in its country of formation, incorporation or registration, a company or entity (“the old company or entity”) is wound up voluntarily, and in circumstances that give rise to a reasonable suspicion that it was deliberately put into liquidation to avoid any tax liability, and— (a) the directors (or other persons acting in a similar capacity) of the old company or entity (or any of them)— (i) incorporate or register another company or other entity (hereinafter called the “new company or entity”) that carries out substantially the same business as the old company; or (ii) operate as sole traders, whether individually or collectively, carrying on substantially the same business as the old company or entity; or (b) the whole or a substantial part of its business and property wherever situated is transferred to another company or entity which will be or has been formed, incorporated or registered under any law; the directors of the old company or entity (whether or not any of them become directors of or act in a similar capacity in relation to the new company or entity) shall be jointly and severally liable for the amount of any tax due and payable by the old company or entity.”. 10 Amendment of section 80 of Cap. 23:06 (1) Section 80 (“Withholding of amounts payable under contracts with State or statutory corporations”) of the Income Tax Act [Chapter 23:06] is amended— (a) in subsection (1) by the repeal of the definition of “payee” and the substitution of— ““payee” means a person to whom any amount is payable in terms of a contract, but does not include a non-resident person liable to pay the withholding taxes under the Seventeenth, Eighteenth and Nineteenth Schedules;”; (b) in subsection (4) by the insertion of the following paragraph after paragraph (b)— “or (c) where the registered taxpayer is exempt from payment of tax, the Commissioner shall refund the tax so payable to the payee or allow a set-off against other tax payable to the Commissioner.”. (2) The failure by the Reserve Bank of Zimbabwe to withhold (in terms of section 80 of the Income Tax Act [Chapter 23:06]) tax from payments to payees who are recipients of interest accruing from Treasury Bills is hereby condoned for the period 1st February, 2009 to 1st December, 2018. (3) The failure by any school to withhold tax from payments to payees in terms of section 80 of the Income Tax Act [Chapter 23:06] is hereby condoned for the period six years ending on the 31st December, 2017. 11 Amendment of section 98B of Cap. 23:06 With effect from the 1st January, 2019, section 98B (“Transactions between associates”) of the Income Tax Act [Chapter 23:06] is amended— 7