The matter of controversial businessman and socialite Genius Ginimbi Kadungure has been postponed before a Harare Magistrate pending finalisation of investigations.
Harare Magistrate Barbra Mateko postponed the matter to June 14.
Allegations are that ZIMRA conducted lifestyle audits on socialites as it was suspectes that the lives they were leading were not matching with their tax declarations.
The State alleged that during the period extending from February 2009 to May 2016, he evaded paying Value Added Tax (VAT) as he made a misrepresentation to ZIMRA that his company had made total sales of $2 777 678.13 inclusive of VAT whereas in actual fact he had made a total sales of $9 092 952.51 inclusive of VAT.
The offence came to light after ZIMRA conducted an investigation into his company. As a result of the prejudice, ZIMRA lost $417 940.58.
On the second count, it is alleged that sometime in 2015, ZIMRA conducted lifestyle audits on socialites after observing an excessive expenditure which was not matching with their tax declarations.
On March 2 2016, Kadungure was interviewed and advised that he owns a residential property in rural Domboshava valued at $200 000, a Rolls Royce valued at R4 million, a Bentley valued at $50 000, a Range Rover valued at R1,1 million, a Mercedes Benz S Class valued at R1 million and a BMW valued at $3 000.
Kadungure also claimed that he had furniture in Domboshava worth $20 000. It is the State’s case that he was asked to prove the source of his income but he failed.
It is further alleged that during the period extending from January 2010 to December 2015 he did not declare income amounting to $9 092 952.51 which was from LP gas sales and $1 191 713.45 from all his properties.
As a result, an Income Tax of $2 134 549 and $306 866.21 were raised in terms of Section 6 of the Income Tax Act which he was supposed to pay to ZIMRA. He allegedly violated Section 81 (1) (a) of the Income Tax Act as was required of him.
It is also alleged that during that time, he imported LP gas From South Africa and Zambia. He allegedly smuggled 5 298 000kgs of gas valued at $672 533.93.
Further, it is alleged that during the same period he was supposed to deduct Pay As You Earn (PAYE) from his 11 employees and also from his salary as a Director and as such ZIMRA was prejudiced of PAYE tax amounting to $355 000.
Meanwhile, Kadungure has exhibited a flashy lifestyle on social media and has a penchant of hosting ‘all white parties’ that runs to several hundred thousands of dollars.
His claim to fame was when he hosted a $17 000 party in Greystone Park which lasted for three days and lately he has ventured into showbusiness (showbiz) , an industry where he became an instant hit opening arguably the most plush club in town (Club Sankai) and he has hosted top acts like Davido and Werrason- a feat that other players in the same industry had failed to achieve for years.