Business / Companies
Zimra garnishees CAAZ over tax
19 Mar 2014 at 23:28hrs | Views
The Zimbabwe Revenue Authority's garnishee axe fell on the Civil Aviation Authority of Zimbabwe on Monday (March 17) after it failed to remit tax dues on time.
The garnishee threatened the state entity from paying salaries for March on time on the 18th as the company's bankers would be directing revenue to Zimra.
The garnishee fell hard on the heels of another one on Premier Service Medical Aid Society that was garnished for arrears to the tune of US$40 million.
CAAZ's garnishee order was subsequently lifted after management submitted a payment plan to the taxman.
CAAZ posted a memo on Monday to its staff informing them of the Zimra garnishee order.
It was not immediately clear how much CAAZ owed Zimra.
"Please be advised that the March 2014 salaries may be paid late as a result of a garnishee order on the authority by the Zimbabwe Revenue Authority. Management is currently negotiating with Zimra on the matter. Management is making every effort to resolve this matter and is therefore requesting staff to be patient," read the memo signed by CAAZ human resources director, Mrs Margaret Mantiziba.
CAAZ chief executive officer, Mr David Chawota, confirmed the garnishee order but said it had since been resolved.
"These garnishee orders are being issued everywhere and particularly now Zimra is targeting parastatals, so there is nothing peculiar about it. Things are tight for everyone including CAAZ. Are you suggesting that you are okay there at Zimpapers. The issue has been sorted out and with Zimra it is all about engagement," said Mr Chawota.
CAAZ's board of directors chaired by Zimra chairperson, Mr Geshom Pasi, was dissolved in February this year and the parent Ministry currently acts as an interim board, while it is in the process of constituting another board.
Zimra is pressed to meet its target as Government is working round the clock to raise money so that it pays restless civil servants.
The Ministry of Finance has said it will pay civil servants' new salary and arrears in April.
Zimra recently issued a garnishee order to PSMAS' bank accounts over tax arrears of more than US$40 million.
The garnishee order at PSMAS raised questions whether the society taxed rich pickings earned by its retired chief executive officer, Dr Cuthbert Dube, who earned more than US$500 000 per month inclusive of benefits.
The garnishee order was lifted after PSMAS reportedly paid US$2 million and offered Zimra an "acceptable" payment plan.
The garnishee threatened the state entity from paying salaries for March on time on the 18th as the company's bankers would be directing revenue to Zimra.
The garnishee fell hard on the heels of another one on Premier Service Medical Aid Society that was garnished for arrears to the tune of US$40 million.
CAAZ's garnishee order was subsequently lifted after management submitted a payment plan to the taxman.
CAAZ posted a memo on Monday to its staff informing them of the Zimra garnishee order.
It was not immediately clear how much CAAZ owed Zimra.
"Please be advised that the March 2014 salaries may be paid late as a result of a garnishee order on the authority by the Zimbabwe Revenue Authority. Management is currently negotiating with Zimra on the matter. Management is making every effort to resolve this matter and is therefore requesting staff to be patient," read the memo signed by CAAZ human resources director, Mrs Margaret Mantiziba.
"These garnishee orders are being issued everywhere and particularly now Zimra is targeting parastatals, so there is nothing peculiar about it. Things are tight for everyone including CAAZ. Are you suggesting that you are okay there at Zimpapers. The issue has been sorted out and with Zimra it is all about engagement," said Mr Chawota.
CAAZ's board of directors chaired by Zimra chairperson, Mr Geshom Pasi, was dissolved in February this year and the parent Ministry currently acts as an interim board, while it is in the process of constituting another board.
Zimra is pressed to meet its target as Government is working round the clock to raise money so that it pays restless civil servants.
The Ministry of Finance has said it will pay civil servants' new salary and arrears in April.
Zimra recently issued a garnishee order to PSMAS' bank accounts over tax arrears of more than US$40 million.
The garnishee order at PSMAS raised questions whether the society taxed rich pickings earned by its retired chief executive officer, Dr Cuthbert Dube, who earned more than US$500 000 per month inclusive of benefits.
The garnishee order was lifted after PSMAS reportedly paid US$2 million and offered Zimra an "acceptable" payment plan.
Source - Herald
