Categories: Stories

StanChart takes ZIMRA to court

Standard Chartered Bank Zimbabwe has taken the country’s revenue authority to court after a disputed $4 million tax adjustment forced a 94 percent decline in the bank’s net profit in the full-year to December 31.

Standard Chartered, the oldest bank in Zimbabwe, reported a $403 000 after-tax profit last year, down from, $6.6 million in 2014.

While the bank’s revenue for 2015 was a marginal six percent lower year-on-year at $63 million and operating expenses were flat at $55 million, a total tax expense of $8.7 million ate into pre-tax profit of $9.1 million.

A $5.2 million prior tax adjustment (which includes the disputed $4 million), compared to $203 000 in 2014, made up the bulk of the total tax expense in 2015, the bank said.

“Prior tax adjustment includes an additional tax expense of $4 062 583 arising from an assessment carried out by the Zimbabwe Revenue Authority (ZIMRA) in 2012,” Standard Chartered said in notes to its year-end financials released today.

“The bank has disputed the liability and the matter is currently with the courts.”

Several companies have taken ZIMRA to the Fiscal Court of Appeal, disputing the tax collector’s assessments.-The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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