High Court Judge Prisca Nyambe has discharged an ex-parte order Staying Execution of Notices of Tax Assessments issued by the Zambia Revenue Authority (ZRA) demanding that Armcor Security Limited pay about K 11.7 million.
Armcor Security Limited alleged that the assessments made of PAYE and VAT are incorrect and thus applied to court for a declaration that the decision by ZRA to issue notices to the Armcor’s clients to hold and remit to ZRA all payments due to Armcor Security Limited, without taking into account the objections by Armcor, was illegal as Armcor was not given the right to be heard.
Armcor had applied for and was granted an ex-parte order staying execution and enforcement of the notices of tax assessments of VAT and PAYE for the period February, 2012 to March, 2013 issued by ZRA against Armcor pending determination of these proceedings.
The inter partes hearing was set to be heard on 1st October 2013 but was adjourned on account of Armcor’s Advocates who needed time to respond to the affidavit in opposition filed in by ZRA.
The matter was adjourned to 27th January 2014 and Armcor was condemned to pay ZRA costs for the adjournment before the 27th January 2014.
On the issue of costs, the Judge once again expressed her disappointment that her order was not complied with and ordered that K5,000 be paid into Court pending taxation of the costs since the Parties had not agreed on the quantum.
Last week in a different case involving ZRA and Amcor, Lusaka High Court Judge Flavia Chishimba ruled in favor of ZRA and dismissed an order Staying Execution of Notices of Tax Assessments issued by the Zambia Revenue Authority (ZRA) demanding Amcor Security Limited to pay about K 7.2 million.
This was in a case before the High Court where Armcor Security Limited sought an order for a Stay of Execution of the Notices of Assessment issued by ZRA on 31 October, 2013, demanding the Security Company to pay 6.2 million Kwacha in respect of VAT and 1.1 million Kwacha in respect of PAYE for the period April 2013 to September 2013.
This is contained in statement released to Qfm by ZRA corporate communications manager Mumbuna Kufekisa.