Zimplats wins tax dispute

Platinum miner, Zimplats has won an order from the High Court to pay royalties at a rate agreed with government in 1994, creating room for a massive claim against a higher tax claim in 2009.

The ruling is likely to result in Zimplats claiming more than US$120 million in rebate for over payment of royalties, according to tax experts.

In a judgement issued last week, Justice Lavender Makoni said Zimplats was liable to pay royalty rates at 2.5 percent of the fair market and not five percent as demanded by ZIMRA or any other rate as stipulated by the Finance Act.

Makoni did not however rule on restitution saying Zimplats had not persisted with the issue of overpayment of royalties in its submissions.