PHD Ministries' trial fails to kick off

THE case in which Walter Magaya’s Prophetic Healing and Deliverance (PHD) ministries is accused of breaching the Value Added Tax (VAT) Act failed to kick off yesterday.

This was after the prosecution ambushed the church’s lawyers with a 300 page document a day before the court hearing.
The matter was remanded to March 21 for trial. PHD was represented by Nelson Tawanda Marimo who appeared before Harare regional magistrate Hosea Mujaya represented by Everson Chatambudza.

“We apply for postponement of this case because we received the State papers yesterday (Wednesday). It is a bulk document of about 300 pages and the defence needs time to go through them before trial commences,” Chatambudza said while addressing the court.
The complainant is the Zimbabwe Revenue Authority (Zimra) represented by Tinashe Madakadze, the chief investigations officer.
According to the State, PHD raises revenue from selling church regalia, anointing oil and holy water and also from operating a guest house.

Zivanai Macharaga of the President’s Office’s Special Anti-Corruption Unit alleged that sometime in October 2018, Zimra conducted tax investigations and recovered financial statements from PHD for the period extending from 2013 to 2017. The court heard that Zimra also recovered financial statements from CBZ Bank which were submitted by PHD for loan application.

The statements showed that PHD had allegedly realised sales amounting to $28 706 040 between 2013 and 2017. It was alleged that during that period PHD did not submit income tax returns to ZIMRA. The court heard that during the same period PHD paid remuneration amounting to $950 522.99 to Tendai Magaya, wife of the church’s founder, into her personal Stanbic Bank account.
PHD also transferred remuneration of US$2 403 658.24 to Walter Magaya’s Stanbic Bank account and on both occasions PHD evaded tax by not paying Pay As You Earn tax.

It was alleged that PHD had no records of all goods and services that it sells and purchases in violation of the VAT Act. It was discovered that on VAT returns for the said period, PHD failed to declare exports made and had submitted VAT returns with false entries again further contravening the same tax regulations.

Comments (2)

PHD church congregats, there goes your money.

yohwe - 2 March 2019

Nowhere in the Bible was oil, water etc sold for what ever purpose. Food for thought.

yohwe - 2 March 2019

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