Latest News Editor's Choice

News / National

'Magaya church not paying tax'

by Staff reporter
16 Feb 2019 at 20:17hrs | Views
THE Walter Magaya-led Prophetic Healing and Deliverance Ministries was yesterday accused before a Harare magistrate of violating the Income Tax Act after failing to declare tax sales of over $28,7 million accrued between 2013 and 2018.

Represented by the board member finance Nelson Tawanda Marimo, PHD Ministries appeared before magistrate Learnmore Mapiye and was remanded on free bail to February 28 for trial.

PHD Ministries is in the business of church services, which raises its revenues through selling church regalia, anointing oil and holy water, among other products, and it also operates guest houses at Yadah Hotel and various places in Harare.

Allegations are that sometime in October 2018, the complainant, Tinashe Madakadze, a Zimbabwe Revenue Authority chief investigation officer, conducted tax investigations on PHD Ministries and recovered financial statements from a computer covering the period between 2013 and 2017.

It is alleged the complainant also recovered other statements from CBZ Bank which were submitted by PHD Ministries for a loan application.

The financial statements showed that the church had realised sales amounting to $28 706 040,60.

The State alleges the church did not declare or submit income tax returns for the said period to Zimra in violation of the Income Tax Act.

It is alleged during the same period, the accused paid remuneration amounting to $954 522,99 to Tendai Magaya and $2 403 658,24 to Walter Magaya.

The State alleges the accused did not deduct Pay-As-You-Earn in violation of sections of Income Tax Act.

Peter Kachirika appeared for the State.

Source - newsday