MP’s firm contests $3m tax demand

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GOKWE-NEMBUDZIYA MP Justice Mayor Wadyajena’s company, Mayor Logistics (Private) Limited, has filed an urgent chamber application with the Constitutional Court (Concourt) seeking to interdict the Zimbabwe Revenue Authority (Zimra) from garnishing its bank account over alleged tax evasion involving over $3 million.

PHILLIP CHIDAVAENZI

In the application, filed under case number CC241/14, Wadyajena’s lawyer Dzikamai Machingura said his client disputed Zimra’s assessment that the firm owed it $1 619 161,32 in value-added tax (VAT) and $2 066 652,84 in income tax, including penalties and interest.

“Applicant (Mayor Logistics) also seeks that respondent (Zimra) be interdicted from collecting VAT and income tax pending the outcome of its appeal which is now before the Fiscal Appeal Court as any such collection would effectively destroy applicant’s business especially in light of the colossal amounts being claimed by the respondent,” the application read in part.

Machingura said the dispute emanated from the fact that there was a misunderstanding on Zimra’s part regarding his client’s business transactions at the time.

“Applicant (Mayor Logistics) has all along disputed that the amounts are legally due and owing to the respondent (Zimra) for the reason that respondent failed to understand the true essence of the business transactions which applicant was involved in during the period of the tax review,” read the application.

“In fact, applicant has since filed an appeal with the Fiscal Appeal Court challenging the respondent’s aforesaid tax assessment.”

Machingura said Mayor Logistics’ constitutional right to “reasonable administrative justice” had been violated through Zimra’s “arbitrary decision” to collect the tax ahead of a pending determination of the applicant’s fiscal appeal.

“Whilst the need for respondent to be able to collect taxes efficiently and effectively is acknowledged, it is equally more important that a taxpayer’s constitutional rights as a taxpayer should also be considered. The prospect that an eventual successful appeal in the Fiscal Appeal Court might reverse the situation is no answer to the actual infringement which endures until then,” he said.

Following the tax assessment, the applicant has argued that Zimra misunderstood the nature of Mayor Logistics’ transactions with an undisclosed third party.

The company subsequently filed its objection with Zimra, but to no avail, forcing Mayor Logistics to file an appeal with the Fiscal Court.

A determination is yet to be made.

7 COMMENTS

  1. govt needs the money and lets not be merciful to him if he has not been paying tax. these big guys have to be investigated on how they have been paying tax, so that the people down the line can be spared the pain of carrying the nation out of their little they have.

    • You seem not to understand the grivience here, tax issues are not meant to cripple any business be it personal or of cooperate nature. The bone of contention is whether collectible tax has been properly calculated or not as any tax assessment for any period can be contested and mayor logistics are appealing on the tax charged after assessment.
      The law should be changed to allow for disputes to be resolved before any penalties are brought into effect. Then, in order for all issues to be above board, a judge should be involved to look at the merits of the issues and an order done where if payment is necessary a more viable arrangement that does not cripple the operations of the organisation is then implemented. Advice for Mayor Logistics is employ qualified personnel to do the work for you especially a tax consultant of repute, its a small amount to pay.

  2. Gᴏᴏɢʟᴇ ɪs ᴘᴀʏɪɴɢ 75$ ᴘᴇʀ ʜᴏᴜʀ! Jᴜsᴛ ᴡᴏʀᴋ ғᴏʀ ғᴇᴡ ʜᴏᴜʀs & sᴘᴇɴᴅ ᴍᴏʀᴇ ᴛɪᴍᴇ ᴡɪᴛʜ ғʀɪᴇɴᴅs ᴀɴᴅ ғᴀᴍɪʟʏ. Oɴ Sᴜɴᴅᴀʏ I ʙᴏᴜɢʜᴛ ᴛʜᴇᴍsᴇʟᴠᴇs ᴀ Aʟғᴀ Rᴏᴍᴇᴏ ғʀᴏᴍ ʜᴀᴠɪɴɢ ᴍᴀᴅᴇ $5637 ᴛʜɪs ᴍᴏɴᴛʜ. Usᴇғᴜʟ sɪᴛᴇ…………. ….
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  3. I understand Mayor has been very vocal in trying to fight some of the corrupt Zanu pf members, this is how the party pays

  4. Ungarwadziwe kubhadhra tax pa business rawakatanga nemari yekungowana. Did you pay tax from what you looted from the farms cde MP? Majaira zvemahara ma zanu. Bhadhara mutero you zpf looting machine, mari yacho tirikutoda kuishandisa. Mukuru achada kudzokera kunokweshwa maziso unofunga kuti mari yacho inobva kupi?

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