Zimra loses tax case against fuel company

Justice Chirawu-Mugomba ordered the operators of Jacaranda Lodge in Alexandra Park to cease operating the lodge, halt all construction and obtain the requisite planning approval before any further development can proceed.

Fidelis Munyoro
The High Court has suspended a garnish order which the Zimbabwe Revenue Authority (Zimra) issued against a Bulawayo-based fuel company to recover more than $2.3 million plus over US$800 000 in tax obligations.

JK Motors trading as Flo Petroleum had made an urgent application at the High Court for an order suspending the garnishee placed on its bank accounts pending the finalisation of the tax wrangle.

Justice Phildah Muzofa granted the provisional order sought by JK Motors pending the finalisation of the dispute.

The judge found no harm in granting the relief sought saying the garnish order was prematurely placed on the company’s accounts and therefore, null and void.

Zimra placed the garnishee on JK Motors to recover $1 007 531 and US$376 187 for the year 2019 while the shortfall for the period of 2020 stood at $1 350 833 and US$430 357.

KJ Motors disputed the assessments made by Zimra, sparking the legal dispute which has now spilled into the High Court.