Mwanza — A suit that started as a civil one has turned criminal, this time the Tanzania Revenue Authority (TRA) is suing an investor for non-payment of taxes.
In the Criminal case No 158 of 2013 filed in the Resident Magistrates Court of Tabora, on December 17, 2013, TRA is suing Mabangu Mining Limited and its Director, one Don Mcleod.
Mabangu is owned 100% by Resolute Tanzania Limited. The two (Mabangu/Resolute) own 50% each in Golden Pride Project. Mr Mcleod is the Director for both companies, Resolute and Mabangu.
According to the charge made available to East African Business Week last week, TRA alleges that Mabangu Mining Limited and Don Mcleod on March 3, 2009 and during subsequent days at Nzega, within the district of Nzega, Tabora region evaded taxes.
The taxes evaded by the two, Mabangu Mining Limited and Don Mcleod was an income tax amounting to $4,705,611.19 assessed upon Mabangu Mining Limited by TRA vide assessment No. 18/10 of February, 2009.
The case came for first mention last week January 29, 2014 at Tabora Resident Magistrate's Court.
The court documents show that Mabangu Mining Limited is a company incorporated in Tanzania with the major occupation in mining of gold jointly with Resolute Tanzania Limited at Golden Pride Project located in Nzega District, Tabora.
The 2nd accused, one Don Mcleod is an Australian national and is a Director of Mabangu Mining Limited dealing with mining of gold at Golden Pride. Both accused use the same address, with offices at Chole, Dar es Salaam.
The genesis of the case is a Consolidated Appeal No. 10 and 13 of 2012 by the Commissioner, TRA against Mabangu Mining Ltd.
The dispute was that on February 3, 2009 TRA issued an assessment to Mabangu amounting to $4,705,611.19 in respect of dividend income.
Aggrieved by the statement, Mabanga lodged notice of objection on March 26, 2009 and TRA declined to admit the Notice of Objection on the grounds that no deposit was made as provided under section 12 (3) of Tax Revenue Appeals Act, Cap 408.
It was an appeal against the judgment of the Tax Revenue Appeals Board (the Board in tax appeal no 11 of 2011 delivered on March 16, 2012 whereby the Tax Revenue Appeals Tribunal quashed the Boards decision.
Because Mabangu Mining Limited nor its Director, Don Mcleod did not appeal against the decision of the Tax Revenue Appeals Tribunal, the law allows for the TRA to file a criminal case.