PPC ZIM LTD
versus
ZRA
HIGH COURT OF ZIMBABWE
DUBE J
HARARE, 23 May 2018 & 19 July 2018
Opposed matter
S Bhebhe, for the applicant
T Mpofu, for the 1st respondent
DUBE J: This is a tax dispute. The applicant’s case is based on the following brief facts. The applicant states that in the year 2009 it recorded a loss of $US 3, 514, 621,765. In the year 2013, the Zimbabwe Revenue Authority, [hereinafter referred to as ZRA] carried out a tax audit of its accounts and queried applicant’s assessed loss. The loss was reduced to US1, 981 453, 33 after the parties entered into negotiations. The tax liability for the applicant was fixed at US$22 184 291, 44. The ZRA demanded payment of interest on the tax due calculated from the date of applicant’s self-assessment for the periods 2009 to 2013.The applicant acknowledges its liability for payment of interest on the unpaid tax. It however denies that such interest should be calculated from any date that precedes the date of the agreement in terms of which the tax concerned is payable. It avers that ZRA’s demand for payment of interest is not based on any assessment in terms of the law. The applicant asserts that the respondents cannot, having agreed to pay the tax due, turn around without making an assessment and require it to pay interest based on a figure it plucked from the air. It wants the respondent to do an assessment of the interest payable so that the applicant sees the computation and decides whether it agrees with it. If it must pay the interest, the respondent must show the basis for the computation of the interest. It contends that ZRA’s demand for outstanding interest and threat to institute collection measures is unlawful because it has not assessed the amount due in terms
