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Chief Court Reporter
The High Court last night reserved judgment in the case in which Bikita West legislator Dr Munyaradzi Kereke is seeking the Zimbabwe Revenue Authority to lift garnishee orders imposed on his hospital, RMC, over US$4 million in unpaid taxes over the last three years. Justice Joseph Martin Mafusire reserved ruling after hearing arguments from lawyers for both parties.
Advocate Lewis Uriri argued the matter for Dr Kereke while Advocate Thembinkosi Ma- gwaliba acted for Zimra.
Both lawyers confirmed that Justice Mafusire reserved his ruling to a later date.
“The judge said . . . he will treat this case as urgent and assured us that he will hand down his ruling any time this week,” said Adv Uriri.
Adv Magwaliba confirmed that Justice Mafusire needed ample time to decide on the matter.
Zimra, which has already started serving garnishee orders on RMC Hospital’s debtors to recover the money, is allegedly owed around US$3,2 million, and the rest is made up of penalties for non-payment of taxes.
Dr Kereke feels the move by Zimra tax collector to swoop on RMC was malicious and a ploy to drive the health institution into liquidation.
He wants the garnishee orders suspended until a separate appeal against the tax assessment is finalised.
Zimra has since November last year blocked cash-flows due to RMC Hospital by issuing garnishee orders to the hospital’s major trade debtors such as Cimas, Premier Service Medical Aid Society and Stanbic Bank, to collect tax liability to the tune of US$3 297 103, 62.
The taxes include Pay As You Earn, income tax and withholding tax.
Dr Kereke lodged an appeal with Zimra against the tax assessment on the same day the garnishee orders were issued.
The appeal is still pending.
According to the law, the appeal must be decided within three months and the prescribed period has not yet elapsed.
But Zimra argued that it acted in terms of the law in effecting the garnishees after invoking Section 69 of the Income Tax Act, which allows the revenue authority to directly recover payment from a taxpayer’s debtors.
Online Reporter