Delta in 26 million debt scandal

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High Court judge Justice Hlekani Mwayera has thrown out an urgent interdict application by Delta Beverages (Pvt) Limited, paving way for the Zimbabwe Revenue Authority (Zimra) to garnish the beverage maker’s bank accounts to recover over $26 million in outstanding taxes.

In his ruling, Justice Mwayera dismissed the the application for lack of urgency with costs and said Delta had an opportunity to submit a payment plan to Zimra pending an appeal, but the company wasted it. On April 14 2016, Zimra confirmed a tax assessment of $30 060 623, including penalty and interest, against Delta. Delta was duly informed of the development through a letter dated April 14 after an investigation into taxes due from 2009 to 2014.

Delta, in terms of Section 62 of the Income Tax Act, objected to the assessment but Zimra did not accede to the objection. In May, the debt came down to $26 897 509 after some payments were made. Last month, Zimra wrote to Delta informing it of its intention to institute measures to recover the debt which prompted Delta to approach the High Court with an urgent chamber application, which was declined.

More: Herald

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