Home CRIMES & COURTS Ginimbi fails to account for source of wealth

Ginimbi fails to account for source of wealth


THE trial of businessman Genius Kadungure, popularly known as Ginimbi, for allegedly failing to declare income returns to the Commissioner of Taxes kicked off yesterday, with the court hearing that he failed to account for his lavish lifestyle between 2010 and 2012 when the Zimbabwe Revenue Authority (Zimra) undertook a lifestyle audit on him.

His company, Piko Trading, also failed to declare income returns to Zimra from gas sales during the same period.

Piko Trading is facing accusations of smuggling 5 289kg of gas into the country.

Kadungure and his company, the court heard, were also not forthcoming with information regarding income and expenditure patterns when Zimra officials asked him to declare such for tax calculation purposes.

State witness Mr Adrian Maudzeni told the court that although Kadungure paid $30 000 in January this year and $5 000 yesterday into the Zimra account towards repaying the amount he allegedly prejudiced Zimra, he was still liable to answer to charges of failing to make the declaration.

“We conducted a lifestyle audit and source of income for the client from 2010 to 2013,” he said. “The client was requested to give proof of source of income and client failed to give proof of source of income between 2010 and 2012.

“The client later provided proof for 2013 to 2015, so he was left with a liability to declare for that period. Zimra was prejudiced $119 815,93 which was undeclared. The total prejudice was $30 864,19 including interest and penalties. To date, $30 000 was recovered on January 15, 2020.” Mr Maudzeni said the amount was due when they conducted the audit.

He said there was still an outstanding amount inclusive of penalties and interest.

“Although he is saying he made a payment of $5 000 today (yesterday),” Mr Maudzeni said. “The charge is not on the amount or dispute on the figure with Zimra, but the charge is on non-submission of returns. The claims have not been submitted.”

Zimbabwe Energy Regulatory Authority acting chief executive Mr Eddington Tapera Mazambani told the court that records showed that the gas in question was imported by Piko Trading, which was trading as Pioneer Gas.

Another witness, Paul Chimungosho, was ordered to verify documents with transactions that Kadungure and his company claim were extracted from Zimra.

Kadungure and his company denied the charges when they appeared before magistrate Mr Crispen Mberewere. They told the court that he complied with the law and paid all duties.

“The accused will state that it has always complied with the law and paid all duties that were requested by Zimra,” he said in his defence.

Piko Trading has since admitted and been convicted on two other counts of failing to declare tax returns to the Commissioner of Taxes.

Mr Andrew Kumire and Mr Loveit Masuku prosecuted.

The trial continues tomorrow.-Herald

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