Delatfin Investments (Pvt) Ltd, a company owned by alleged land baron Felix Munyaradzi, has been given seven days to pay outstanding taxes of more than US$12 million, before the Zimbabwe Revenue Authority takes the required action to get its money. The latest developments come after Munyaradzi, who was arrested last week on charges of attempting to defeat the course of justice and interfering with a State witness, was facing fresh allegations of evading US$14 million in taxes after a whistleblower who had reported him to Zimra.
The whistleblower alleges that Deltafin had since 2013 been using complex arrangement to avoid paying tax, largely through curious payment methods for stands on its Sandton estate near Westgate, selling land in exchange for motor vehicles and then swapping these for cattle.
Munyaradzi is already remanded on bail over these Sandton land deals, and is now in further trouble over the missing tax payments. Zimra has since written a letter of final demand to the company summarising the outstanding and long overdue tax obligations.
According to Zimra, Delatifin owes US$1 266 563 95 in VAT, US$8 345 499 60 in PAYE and its own income tax of US$2 726 228 19, a total of US$12 338 291,74.
The VAT is collected from customers, and is supposed to be promptly forwarded to Zimra.
PAYE is deducted from workers salaries and again is supposed to be forwarded straight to Zimra. In both cases Deltafin was just the collection agent.
The income tax comes out of Deltafin’s profits and is supposed to paid in four instalments during the year as the profits are made.
“I hereby advise you to pay the above overdue amounts within seven days from the date of receipt of this letter, failure of which recovery measures will be instituted against you without any further communication from this office,” reads part of the letter from Zimra signed by Mr T. Chipandu, for regional manager — medium clients office — region one.
“Your cooperation on this matter will be greatly appreciated.”
The letter’s reference number is 200045850.
Munyaradzi was first arrested last year on allegations of duping stand seekers in the Sandton area near Westgate in Harare, but was released on bail.
He is also being accused of obstructing the course of justice and interfering with witnesses in a case in which police Commissioner Erasmus Makodza was arrested and charged with criminal abuse of duty as a public officer. The anonymous whistleblower wrote to Zimra, Office of the President and Cabinet, Commissioner-General of the Zimbabwe Republic Police and the Special Anti-Corruption Unit suggesting they investigate Munyaradzi through his company Delatfin Investments (Pvt) Ltd for tax evasion and deliberate non-payment of outstanding taxes from 2013 to 2018.