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Harare Bureau
THE Zimbabwe Revenue Authority has issued a garnishee order to a local bank against the bank account of Marange Resources over a $10 million tax arrears liability.
Documents in the possession of our Harare Bureau show that the State owned diamond miner owes the taxman $10 million arising from Pay As You Earn arrears, interest and penalty charges for unsettled obligations.

Zimra claims that Marange Resources owes a principal amount of $5,8 million, $1,1 million interest liability and $2,9 million penalty for  failure to settle the dues on time.

“Whereas the above named, believed to be entitled to certain income from or to have money deposited with your bank, is indebted for income tax as stated,” said Zimra.

“You are hereby appointed agent for the debtor under the provisions of the income tax and VAT Act,” Zimra added.

The garnishee order by Zimra indicated that if the bank parted with any of the money that comes through it, it would become liable (protanto) for the tax liability.

“Full indemnity is afforded the agent against any action by the taxpayer for recovery of the amount paid to me hereunder,” Zimra said in the garnishee statement.

The taxman has issued garnishee orders against many entities that failed to meet their tax obligations due to challenges sweeping across the entire economy.

Several of the companies have since filed cases with the fiscal Court of Appeal to contest the revenue collector’s garnishee orders and these include Zimbabwe Leaf Tobacco, Steelmakers and Blanket Mine. RMC Hospital, Barclays Bank, Standard Chartered Bank and Zimplats, Mayor Logistics and Harare City Council also filed notices of their intention to contest the orders. Zimra’s commissioner general may declare any person to be the agent of another person to pay amount due from monies in any current account, fixed account, fixed deposit account, savings account or any other account.

This includes pensions, salaries or any other remuneration they may hold for or due by them to the person the agency would have been declared to be.

Such agents include banks, building society or savings club, a partnership, any officer in public service. Tax includes interest payable by virtue of provisions of Subsection (2) Sections Seventy of the Income Tax Act.

According to extracts of the income Tax Act, every representative taxpayer who pays tax shall be entitled to recover from the person on whose behalf the money is paid, or retain monies that may be in their possession, as required, to indemnify themselves for the payment.

A representative taxpayer shall be liable for any tax payable by him as a representative if they alienate, charge or dispose of the income for which tax is chargeable.

The same rule will apply if the representative disposes of or parts with any funds or money in their possession or come to them after the tax is payable, when the tax could have been paid from such funds or money.

According to Zimra, the commissioner general has the same remedies in as full and ample manner, against all property under the control of any agent or trustee, as he has against the property of anyone liable to pay tax.