Econet's bid to drag NetOne in tax wrangle blocked

By Staff reporter | 28 Oct 2018 at 21:11hrs
Econet
The Supreme Court has blocked an attempt by telecommunications giant, Econet Wireless to suck in government-owned competitor, NetOne (Pvt) Limited into its legal dispute over millions of dollars' tax with ZIMRA.

Econet is said to have made a position that it cannot be made to pay the taxes in question because NetOne was not being charged the similar taxes and had issued a subpoena for then NetOne CEO, Reward Kangai and NetOne to bring to court all its bills of entry for the past 15 years.

Justice Anne Marry Gowora with the concurrence of Justice Ben Hlatshwayo and Justice Susan Mavangira ruled in favour of NetOne, which had appealed against an order for it to release its bills of entry to show whether it had paid the taxes ZIMRA is seeking to recover from Econet Wireless.

On appeal, the Supreme Court set aside the order of the fiscal appeals court which had an effect of invading the privacy of NetOne by dragging it into the dog fight between Econet and ZIMRA.

Mr Harrison Nkomo, who was Advocate Thabani Mpofu's instructing attorney and representing NetOne in the matter, confirmed the court had upheld their appeal.

In its final order in the civil appeal, the Supreme Court set aside the subpoena issued by the Fiscal Appeal Court on the 9th of February 2015 and additionally ordered Econet to bear the cost of the civil appeal on the scale of legal practitioner and own client.

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