Zimbabwe: Delta's U.S.$97m Zimra Tax Dispute Continues

What the report says

Delta Corporation’s tax dispute with Zimbabwe’s revenue authority remains unresolved and is now being heard by the Special Court for Income Tax Appeals, according to New Zimbabwe as republished by AllAfrica. The case centers on assessments worth about US$97 million, covering value-added tax and income tax for the 2019 to 2022 period, and includes an earlier US$74 million claim.

The company has challenged the assessments, saying the tax authority did not properly account for local-currency payments made during Zimbabwe’s period of high inflation. Delta chairman Todd Moyo said the validity of some assessments for 2019 to 2021 had been confirmed, but the calculation, apportionment, methodology and currency treatment were still disputed.

Moyo also said a separate High Court application over 2024 VAT assessments is still pending, and that further proceedings may follow an additional income tax assessment for the 2021 year. He said Delta had already paid US$22.8 million toward the disputed liabilities under the “pay now, argue later” approach. The company said it remains committed to meeting its tax obligations and reported paying more than US$193 million in taxes in Zimbabwe during the half-year period, up 31% from a year earlier. The dispute highlights continuing uncertainty over how Zimbabwe’s tax rules apply to transactions and payments made during periods of currency instability.