Godfrey Marawanyika/Shakeman Mugari
THE Zimbabwe Revenue Authority (Zimra) could lose $12 billion after their claims against the liquidated Century Discount House were drastically reduced from $13 billion to
$800 million by curator Cecil Madondo of Tudor House.
The tax authority was set to be one of the more than 200 creditors to benefit from claims against the liquidation of Century Discount House by Madondo.
Zimra is claiming $13 billion as part of taxable earnings but the amount Madondo said was likely to be reduced to a mere $800 million.
If the claim is successfully reduced it will mean that Zimra will have to write-down the amount as losses. It would also result in a hole in the country’s revenue which has not been sound for sometime now.
In his report, which is set to be heard in the High Court on April 28, the curator’s report highlights that there are unsecured creditors who are owed $38 billion and preferential creditors who must be paid $3 billion.
At the same time secured creditors should be paid $16 billion.
Both the secured, preferential and secured creditors have been cited as the reason why Zimra’s claim would be reduced.
“It should be noted that based on the current evidence Zimra’s claim is likely to be reduced from a total amount of $13 090 162 164,56 to about $800 000 000 and examination of this claim is almost complete,” Madondo said in the report.
Commissioner general Gershom Pasi this week said he was still to set sight on the report, so he could not comment.
“I have not seen the report as yet. The other thing is that the figures cited I think are estimates,” Pasi said. “This would need people from our offices to see what is on the ground, then we would know the actual position.”
The curator has already launched a $44 billion claim against Century Holdings Ltd. The liquidator has positively identified CDH with an estimated value of about $42 billion and the selling process is in progress, says the report.
The First Interim Liquidation and Distribution Account will be submitted to the Master of the High Court before the end of June this year.