The Zimbabwe National Road Administration (Zinara) has been taken to the High Court by a local construction firm, Fremus Enterprises, which is seeking to recover $893 000 which it paid to the Zimbabwe Revenue Authority (Zimra) in value-added tax (VAT).
BY CHARLES LAITON
According to Fremus, Zinara made an undertaking in May 2013, that it would refund the construction company the money it would have paid to Zimra, but after paying $893 000, the parastatal was allegedly reluctant to pay back.
“Despite repeated demands and full compliance by plaintiff (Fremus) of defendant’s (Zinara) conditions for a refund of the said VAT, defendant has failed and neglected to pay either the said VAT or any part thereof,” Fremus said.
“In early 2013, Zimra demanded 15% VAT from the plaintiff on all its claims notwithstanding the facts that plaintiff had not registered for VAT and had indeed not charged defendant such VAT.”
According to Fremus, Zimra’s contention was that Fremus had to collect VAT from Zinara and pay it over to it or simply pay such VAT from its own coffers and then recover same from Zinara.
The court heard, this was done after Fremus had entered into an agreement with Zinara for the rehabilitation of roads in Buhera, Gutu and Zaka rural district councils between 2011 and 2013.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
It was a term of the said agreement, Fremus said, that it would be paid its remuneration by Zinara upon completion of the work and submission of its invoices relating to each particular project.
Fremus said, at the time, it would not charge Zinara 15% VAT in its claims because it was not yet registered for the same with Zimra.
“Defendant could not during that period make arrangements either to pay such VAT to plaintiff for the latter to pay it over to Zimra or directly to Zimra,” the construction firm said.
“In May 2013, defendant undertook in writing to refund plaintiff the total VAT it would have paid to Zimra.
“In the result, plaintiff paid the total sum of $893 000 to Zimra being 15% VAT on all its claims for the work it had performed in the aforesaid local authorities, thereby suffering great financial prejudice.”
Zinara is yet to file an appearance to defend notice.
