'Wadyajena's tax bill bigger'

HARARE - Gokwe-Nembudziya legislator Justice Wadyajena’s tax woes and liabilities could have been bigger — had the taxman not “nicked” a portion of his penalties off the total bill, documents show.

This comes amid revelations that the Zimbabwe Revenue Authority (Zimra) had directed Mayor Logistics (Private) Limited (Mayor)’s debtors, including Sakunda Energy (Sakunda), to remit funds due to the fuel transporter to the tax collector.

According to information at hand, Wadyajena has not only been ordered to pay the full and outstanding amounts immediately, but owed as much as $2,6 million — broken down as $900 600 in principal income tax debt, a similar amount in penalties and value added tax (VAT) arrears of $809 580.

As such, the likes of Sakunda — 100 percent owned by Kuda Tagwirei and his wife — have been appointed “agent(s) for the debtor under the provisions of the Income Tax Act Chapter23:06 and Value Added Tax Act Chapter 23:12, and are required to remit… the total amount due”.

In a June 5 letter to some of Wadyajena’s debtors, Zimra’s investigations and international affairs department said agents would be “fully indemnified against any action by the taxpayer for the recovery of cash paid or due to the fiscal agent”.

Although the Zanu PF member of Parliament argues that his tax bills had been overstated and his company could not be charged VAT for “services paid in kind”, the revenue authority says that taxes are due since the transactions have a monetary value or are dollar-based.

Under an arrangement with Tagwirei’s Sakunda, Wadyajena’s company provides fuel transportation services for the successful petroleum distribution firm and is often paid through product supplies.

Apart from running a service station in Kwekwe, the latter has 22 trucks in his fleet — built on the back of the transportation arrangement with Sakunda.

While the parliamentary portfolio committee chairperson on Indigenisation has rushed to the Constitutional Court to bar Zimra from garnishing its accounts and disprove the 2011 to 2012 tax assessments, the messy affair has had the potential of blemishing innocent third parties such as Sakunda.

As it is, there has been long-running speculation about cross-shareholdings between the companies, yet Sakunda and Mayor are purely independent firms.

In recent months, the youthful legislator has shot to prominence after clashing with Environment minister Savior Kasukuwere over the latter’s controversial tenure at the Indigenisation ministry and particularly claims that Chiadzwa diamond mining firms had agreed to pumping $50 million into a community share trust.

Comments (4)

If you pay in kind its fine but considering your line of business as a transporter it is best that you should have used a set off system thus the provision of transport was actually provision of a service that is to be charged VAT. thus correct transaction was to raise an invoice and then later set-off with your client I think ZIMRA in this case is correct your accountant did not consider the financial standards of operation

Tax payer - 12 June 2014

even mutyebere aka Chicken Slice aka mai mujru has not been paying tax since the fast food outlet started operating.

mafira - 12 June 2014

Mufanha ukatamba nezimra unokaura or kumama chaiko takabvako kumhunga hakuna ipwa chikomana ndokupedzwa kwaunoitwa mupolitics,saka bhadhara ubve wanyarara kana kusiya musangano wezanu iwoyo.Wakairasa taura navo zimra zvakanaka wobuda pachena kuti hauna mari uri kamwanana.

Cde Matimati - 13 June 2014

This young overzealous legislator thought that to be outspoken and to put a sketching attack on Saviour Kasukuwere's indigenisation deals is the best way to go. Asi waifunga kuti iwe chete ndiwe ungagona Saviour, tarira uone zvavavakuitwa manje

Genaguru - 13 June 2014

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