Magaya church in court for tax fraud involving $30 million USD

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Yadah Connect owned by self proclaimed prophet Walter Magaya who is the founder of Prophetic Healing and Deliverance (PHD) has yet again been dragged to court on two counts of tax evasion after allegedly prejudicing ZIMRA of close to $500k in less than a year.
Yadah Connect owned by self proclaimed prophet Walter Magaya who is the founder of Prophetic Healing and Deliverance (PHD) has yet again been dragged to court on two counts of tax evasion after allegedly prejudicing ZIMRA of close to $500k in less than a year.

Harare – The Prophetic Healing Deliverance Ministries led by Walter Magaya which pocketed close to US $30 000 000 from church regalia, anointing oil, holy water sells and running a guests house at Yadah Hotel has been dragged to court on allegations of tax invasion.

PHD represented by a member of the church organs, Nelson Marimo will stand trial on February before a Harare magistrate for tax evasion, under declaration among other vices involving payment of taxes.

The ministry’s representative appeared before Harare Magistrate Learnmore Mapiye facing four counts of contravening the Value Added Tax Act (VAT) by failing to submit income returns, failing to withhold employees tax, failing to keep proper records and neglecting to declare exports.

Prosecutor Peter Kachirika alleged that PhD raises revenue from selling church regalia, annoying oil and holy water and also operating guest house at Yadah hotel. It is further alleged that sometime in October 2018; ZIMRA conducted tax investigations and recovered financial statements from PHD extending from 2013 to 2017.

Financial statements were also recovered from the Commercial Bank of Zimbabwe which was submitted by accused for loan application, the court heard.

The statements showed that PHD had realised sales amounting to US$28 706 040 during the period 2013 to 2017, and during that period the accused did not submit income tax returns to ZIMRA.

It is further alleged that during the same period PHD paid remuneration amounting to US $950 522.99 to Magaya’s wife, Tendai through bank transfers but no tax was withheld from her earnings.

PHD also transferred remuneration of amounting to US $2 403 658.24 to Magaya’s account but he was not subjected to Pay as You Earn tax (PAYE) as required by law.

The ministry is alleged to have not been in possession of records of all goods and services that it sales and the purchases thereafter which is a violation of Value Added Tax Act.

The court heard that the for the VAT returns during the said period, PHD failed to declare the exports it made and had submitted  VAT returns with false entries again with violation of the VAT Act.

PHD has engaged the services of Everson Chatambudza as its attorney.

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