TM Supermarket loses tax case

Leading  retail group, TM Supermarket, is embroiled in a dispute with the taxman after being penalised for trying to evade tax when it imported refrigeration units in 2012.

According to court documents, TM Supermarket dragged the Zimbabwe Revenue Authority (ZIMRA) to court challenging a US$135 000 fine imposed on it for dishonesty after it imported refrigeration units from South Africa and allegedly misrepresented that the consignment had cabinets for use in making fridges in order to pay less duty.

However, upon physical inspection of the goods, ZIMRA officials are said to have discovered that the retail chain had imported complete refrigeration units which attracted import duty of 60 percent. The units the company had declared attracted duty of just five percent.  

This resulted in ZIMRA calculating duty due at US$134 798. The taxman then imposed a 100 percent fine on the amount due.