Ginimbi, Zimra out-of-court settlement deal collapses



SOCIALITE and businessman Genius “Ginimbi” Kadungure, who is facing charges of tax evasion and smuggling, who had offered a $400 000 monthly out-of-court settlement deal to the Zimbabwe Revenue Authority (Zimra) to clear his $13,5 million tax debt, has filed an application for exception challenging the facts of the charges, saying they do not disclose an offence.

Kadungure, represented by Jonathan Samukange, has submitted that the facts of the charge must be crafted in such a manner that they do not prejudice or embarrass him in his defence.

He further submitted that the State had failed to lay a basis in its charge to warrant the invocation of the provisions of the law.

But the State opposed Kadungure’s application, saying the charges were well-crafted and the State had evidence in which the accused person personally compiled and signed some documents which he submitted to commissioner of taxes.

Last week, Kadungure asked for a postponement of the matter, saying he had an appointment with Zimra for an out-of-court settlement. He had offered Zimra $400 000 a month until $13 538 596 is cleared, but it seems they could not agree, hence the matter had to proceed.

Harare magistrate Chrispen Mberewere postponed the matter to March 31.

Allegations are that on a date unknown to the prosecutor, but from February 2009 to May 2016, Kadungure, being a director of Piko Trading, unlawfully evaded the payment of tax levied under the Act and made a false statement that the total gas sold by his company was worth $3 194 329 including value-added tax, while in actual fact the total sales were $24 187 026, and Zimra allegedly suffered a total prejudice of $2 512 149.

Kadungure is also being charged with smuggling 5 289kg of liquefied petroleum gas into Zimbabwe, thereby prejudicing Zimra of $672 533 customs duty.

He is also accused of failing to remit employees tax amounting to $355 559 to the commissioner of tax and another charge of neglecting to furnish files or returns required by the commissioner of taxes and defined by the Income Tax Act, prejudicing Zimra of $300 866.