New Zimbabwe.com

State struggles with Kadungure tax evasion investigation

By Mary Taruvinga


A Harare Magistrate has been forced to agree to a postponement in the case in which controversial businessman, Genius Kadungure is accused of evading paying taxes.

The State argues Kadungure prejudiced the Zimbabwe Revenue Authority (Zimra) of RTGS$22 million in unpaid taxes.

Depite having claimed that they were ready for trail, prosecutors, Monday told Magistrate Babra Mateko that they needed time to wind up their investigations in the case. Magistrate Mateko granted the prosecution’s request. Kadungure is now expected ion court on June 14.

On February 22 this year, prosecutor Shephered Makonde told Harare magistrate, Vongai Guuriro Muchuchuti that investigations were complete before he promised to furnish Kadungure with a trial date on his next remand which was March 21.

But when the socialite appeared before Mateko on Monday, prosecutor Sebastian Mutizirwa revealed otherwise.

“We are asking for a postponement to June 14 this year because investigations are still underway,” Mutizirwa said.

The case was then postponed with consent from both parties.

It is the State’s case that between February 2009 and May 2016, Kadungure allegedly made misrepresentations to Zimra that his company Pioneer Gases made total sales of $2 777 678,13 although the total was $9 092 951,51.

It was alleged that Kadungure made the misrepresentation to avoid paying tax and Zimra was prejudiced $417 940, 58.

The offence came to light when Zimra investigated operations of Pioneer Gases and a lifestyle audit of Kadungure.

Court heard that on March 2, 2016, Kadungure told Zimra investigators that he owned a Domboshawa residential property valued at $200 000, Rolls Royce, Bentley Range Rover, a Mercedes-Benz S Class and BMW motor vehicles.

Zimra investigators asked Kadungure to prove the source of income but the businessman reportedly failed, leading to his arrest.

According to the State, Section 81 (1) (a) of the Income Tax Act required Kadungure to file tax returns and pay tax due to the Commissioner of Taxes.

He is being represented by his lawyer, Jonathan Samkange.