Harare – The trial for Prophetic Healing Deliverance Ministries (PHD) which was set to begin on Thursday failed to commence and has been moved to March 21 in a matter in which the church is facing charges of tax evasion.
PHD which was founded by self-styled prophet, Walter Magaya is being represented by one of its directors Tawanda Nelson Marimo.
The trial was expected to kick off today but the defense counsel applied for the postponement of the matter to allow them to go through the State papers.
On March 21, a Zimra official is expected to testify.
Allegations are that PhD raised revenue of up to $28 million from selling church regalia, anointing oil and holy water and also operating guest house at Yadah hotel. 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 were submitted by accused’s 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 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 pROPHET Magaya’s wife prophetess Tendai Magaya through bank transfers into her personal Stanbic bank account. PHD also transferred remuneration of USD 2 403 658.24 to Walter Magaya’s Stanbic bank account on both occasions PHD evaded tax by not paying the pay as you earn tax (PAYE).
The ministry is alleged to have not been in possession of records of all goods and services that it sells 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