Online Reporter
Martin Kadzere
Delta Corporation has suffered a significant setback in its protracted legal battle with the Zimbabwe Revenue Authority (ZIMRA) after the Constitutional Court dismissed its appeal challenging earlier court rulings regarding disputed tax assessments totalling about $74 million.
Delta has been contesting tax assessments issued by ZIMRA for amounts the company argues should have been payable exclusively in foreign currency.
The company contended that ZIMRA’s assessments failed to account for local currency payments made at the time, which have since been eroded by currency depreciation.
The additional tax assessments were issued in November 2024, compounding those from 2022.
This brought the total disputed amount to US$74 million, encompassing principal tax, penalties, and interest related to value-added tax (VAT) as well as income tax for the period running from 2019 and 2022.
Following the series of rulings made by the High and Supreme Courts, Delta had been pursuing legal routes at various levels, including the Constitutional Court and ZIMRA’s internal appeal processes.
By December 31, 2024, the company had paid US$9,2 million under the “pay now, argue later” principle and existing payment plans.
“The application cannot succeed because it is not in the interests of justice for the court to interfere with the final decision of the court a quo where no fundamental procedural irregularity or violation of rights has been demonstrated,” ruled the Constitutional Court.
The Constitutional Court’s ruling marks a critical juncture for Delta, as the implementation of these assessments could significantly impact its operations and financial position.
