News / National
Zimra raids three businessmen of Pakistani origin
03 Jul 2014 at 06:09hrs | Views
The Zimbabwe Revenue Authority (Zimra) on Tuesday raided several shops and two houses in Harare's Belvedere Suburb belonging to three businessmen of Pakistani origin for tax evasion.
The trio, Muhammad Tufail, Muhammad Zakir and Rana Muhammad Naseem, through their spare parts company, Luzern Enterprises, are alleged to be shipping and importing containers from Dubai, South Africa and Mozambique, with spares valued between $300 000 and $400 000 per week, without remitting any taxes to the revenue authority.
The businesspeople were barred from speaking to the media by Zimra.
The company has reportedly been evading paying tax since 2009.
Sources said the trio was in the habit of double-invoicing transactions at their trade offices where they would give customers actual receipts and create forged receipts for the revenue authority, while claiming business was very low and they were failing to remit taxes to Zimra because of these challenges.
The trio went a step further in duping authorities by using a Zimbabwean young woman, Isabel Hotshani, as a front and purported major shareholder with 51% stake in the business to comply with the Indigenisation Act.
But, in an application to the Zimbabwe Investment Authority (Zia) dated June 17 2014, Hotshani appealed to the Authority to cancel Luzern enterprises license based on the fact the trio was not complying with the law.
"As 51% shareholder, for the past five years I have never received any of my dividends and I was never given a chance or allowed to audit any books of accounts. Instead, I was told to work as an employee for $80 per week," the application read.
"Due to the above, I pray that the licence be cancelled and I be paid my dues by taking over the 49% shareholding of those investors as they are not honest and do not honour the country's regulations and ZimAsset blueprint."
The trio has also been accused of duping the National Employment Council by registering two employees instead of the 14 employees who work for the company thus breaching the labour laws by forcing workers to work back-breaking, long hours with no leave, off or sick leaves days, no holidays and no tea or lunch breaks.
"We work with no breaks and you cannot afford to be sick, if you ask for over-time your are threatened with dismissal and what is unfair is these men even go to the extent of verbally abusing us by chanting that ‘black ngarishande' (the blackman must work) and making us work like slaves," said an employee who requested anonymity.
Some of the places that were raided by Zimra include shops and warehouses at No. 7, 83 and 57 Kaguvi Street, Number 10 Charles Bullock in Belvedere, Shop 61 in Harare Street and a house at No.17 Bishop Gaul in Belvedere.
"Yes, we are aware of the matter but at the moment I am not in a position to comment. Our corporate communications department will address the matter since investigations are underway," Jairos Chiwara, senior auditor for Zimra said.
The trio, Muhammad Tufail, Muhammad Zakir and Rana Muhammad Naseem, through their spare parts company, Luzern Enterprises, are alleged to be shipping and importing containers from Dubai, South Africa and Mozambique, with spares valued between $300 000 and $400 000 per week, without remitting any taxes to the revenue authority.
The businesspeople were barred from speaking to the media by Zimra.
The company has reportedly been evading paying tax since 2009.
Sources said the trio was in the habit of double-invoicing transactions at their trade offices where they would give customers actual receipts and create forged receipts for the revenue authority, while claiming business was very low and they were failing to remit taxes to Zimra because of these challenges.
The trio went a step further in duping authorities by using a Zimbabwean young woman, Isabel Hotshani, as a front and purported major shareholder with 51% stake in the business to comply with the Indigenisation Act.
But, in an application to the Zimbabwe Investment Authority (Zia) dated June 17 2014, Hotshani appealed to the Authority to cancel Luzern enterprises license based on the fact the trio was not complying with the law.
"As 51% shareholder, for the past five years I have never received any of my dividends and I was never given a chance or allowed to audit any books of accounts. Instead, I was told to work as an employee for $80 per week," the application read.
"Due to the above, I pray that the licence be cancelled and I be paid my dues by taking over the 49% shareholding of those investors as they are not honest and do not honour the country's regulations and ZimAsset blueprint."
The trio has also been accused of duping the National Employment Council by registering two employees instead of the 14 employees who work for the company thus breaching the labour laws by forcing workers to work back-breaking, long hours with no leave, off or sick leaves days, no holidays and no tea or lunch breaks.
"We work with no breaks and you cannot afford to be sick, if you ask for over-time your are threatened with dismissal and what is unfair is these men even go to the extent of verbally abusing us by chanting that ‘black ngarishande' (the blackman must work) and making us work like slaves," said an employee who requested anonymity.
Some of the places that were raided by Zimra include shops and warehouses at No. 7, 83 and 57 Kaguvi Street, Number 10 Charles Bullock in Belvedere, Shop 61 in Harare Street and a house at No.17 Bishop Gaul in Belvedere.
"Yes, we are aware of the matter but at the moment I am not in a position to comment. Our corporate communications department will address the matter since investigations are underway," Jairos Chiwara, senior auditor for Zimra said.
Source - The Zim
