Zimra sued for 'evading tax'

HARARE - They are mandated by an Act of Parliament to clamp down on tax evasion but the script appears to have changed as Zimbabwe Revenue Authority (Zimra) has been dragged before the High Court for evading whistle blower tax.

A Harare man is demanding 10 percent of $18 million recovered from mobile network provider NetOne after he provided information that blew the lid on a multi–million
tax evasion scam allegedly committed by NetOne.

In the epic battle, the plaintiff says he only received $75 000 from the $1,8 million he believes is due to him after he exposed misconduct at the mobile provider which was flouting tax obligations.

Zimra Commissioner-General Faith Mazani, the tax authority and Finance minister Mthuli Ncube are cited as first, second and third defendants.

According to the summons; “Sometime in early November 2015, the plaintiff approached and furnished relevant information to the first and second defendants in terms of section 34B of the Revenue Authority Act.

“The plaintiff presented information and evidence that NetOne Cellular Private Limited was flouting its tax obligation by not paying what is lawfully due to the first defendant being (a) non-resident taxon fees ($7 578 004), (b) value added tax ($220 183), (c) withholding tax on contracts ($158 590), (d) income tax (8 310 103), (e) special excise due on airtime ($2 646 770),” the summons read.

The plaintiff further alleges that in order to corroborate his case he provided an audit report and preliminary internal audit narrating the discrepancies that were obtaining at NetOne.

“The plaintiff’s information was received by Zimra resulting in him signing a confidential whistle blower agreement and further providing various correspondences,” the summons read, adding:

“Due to the plaintiff’s information and report the first and second defendant recovered a tax obligation of $18 913 644 and in terms of section 34B of the Revenue Act, the plaintiff is entitled to 10 percent of the total amount recovered. To date first and second defendants only paid to plaintiff an amount of $75 000 and they have unlawfully withheld the rest of the commission due to the plaintiff.”

Zimra are yet to respond.

Comments (1)

Zimra, are an idiot lot. Good at collecting but to get a refund you have to work hard for it. I am a victim. One time after their audit, I was advised that so much was refundable to me. After approaching the refund department, I was told that it was a process. Later on, after follow-ups I was told I am owing. Prepared to present my case to them, I was told I was now in credit. Really Zimra, are your staff qualified or just the Zimsec graduants.

Yohwe - 12 October 2018

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