By Alois Vinga
LISTED beverages manufacturer, Delta Corporation has upped the ante in fighting the US$54, 7 million tax and penalties payments bill demanded by authorities.
Presenting the group’s performance for the period ended September 30 2023, Delta board chairman Sternford Moyo said there are ongoing disputes concerning the currency of payment of certain taxes and the methods of splitting the taxes by currency following the decision by the Zimbabwe Revenue Authority (ZIMRA).
“The tax authorities made additional income tax and value-added tax assessments, penalties and interest of US$54,7 million against Group entities for amounts they deem should have been paid in foreign currency.
“No credit has been given to the equivalent amounts already paid in legal tender of Zimbabwe,” said Moyo.
The beverages manufacturer argued that the law empowers ZIMRA to collect any taxes based on their positions under the pay now, arguing later principle revealing the assessments are at various stages of appeal and court processes.
“Based on the guidance of tax experts and legal counsel the Board is of the view that the Companies have acted within the confines of existing statutes, consequently no provision has been made in the financial statements.
“The board cannot at this stage determine the likely outcome or timing of the resolution of these matters,” he said.
During the period, the group revenue increased by 164% to ZW$1,9 trillion in inflation adjusted terms compared to a growth of 879% in historical cost terms and 9% in US$ terms.
This reflects the volume growth across business units and the increased proportion of foreign currency sales to over 80%.
There was an increase in the proportion of domestic transactions settled in foreign currency.
“Both UNB South Africa and Natbrew Zambia are showing improvements in volume and financial performance.
“To provide users with a better insight into the underlying performance, it is noted that the proforma financial information indicates Group revenue at US$376million, up 9% over the prior year, whilst EBIT is indicated at US$85 million,” added Moyo.