The Zimbabwe Revenue Authority (Zimra) has launched a blitz against companies that failed to submit tax returns and has taken some of them before the courts.
Larncom Trading (Pvt) Ltd, a retail business, has been charged for failing to declare tax returns between December 31, 2008 and end of last year. Three more companies were expected to be prosecuted before the end of the week.
In the Larncom Trading case, Zimra represented by revenue specialist Tarusunga Chirikure, alleged that the company, represented by one of its directors Patson Chikuni, contravened section 82 (1) (a) of the Income Tax Act Chapter 23:06 after it failed to furnish the authority with its tax returns.
Larncom through its lawyer James Magodora pleaded not guilty to the charge arguing it closed down in 2008 because of economic problems.
“Our clients were religious in submitting their tax returns since being incorporated in 1994 to 2008 when they were forced to close shop,” Magodora said.
“The reason why they have not been able to submit their tax returns is that they have no returns to submit since operations are grounded.”
Kwekwe magistrate Tendai Mahwe is handling the matter, which was initially heard on October 10 and will continue on November 16.
