Delta loses  US$74m tax dispute with ZIMRA

STAFF WRITER

Delta Corporation, Zimbabwe’s largest brewer, has suffered a major legal blow in its ongoing US$74 million tax dispute with the Zimbabwe Revenue Authority (ZIMRA), after the Constitutional Court dismissed its application for direct access.

The tax row stems from assessments made by ZIMRA for the period 2019 to 2022, covering VAT and income tax. Delta contends that the assessments failed to credit local currency payments already made, which have since been eroded by inflation. The dispute includes penalties and interest and follows earlier assessments issued in 2022 and additional ones in 2024.

Having lost appeals in both the High Court and the Supreme Court, Delta turned to the Constitutional Court, claiming its right to equal protection under the law had been violated. The company argued that critical issues it raised were ignored by the lower courts and insisted the Supreme Court’s judgment was constitutionally flawed.

However, the Constitutional Court ruled that the matter lacked constitutional substance and was an attempt to re-litigate already settled issues. The court also noted that Delta still had unresolved appeals in specialist tax courts, which it had failed to pursue fully. Delta argued those appeals had been removed from the roll by agreement with ZIMRA to focus on the High Court case. The Constitutional Court disagreed, stating the existence of alternative remedies nullified its jurisdiction in the matter.

The ruling effectively blocks Delta’s attempt to bypass tax courts and revive its claims at the highest level. With nearly US$9.2 million already paid under “pay now, argue later” rules, Delta may now be compelled to settle the remainder, unless future tax court appeals swing in its favour.