SRA DEMANDS OVER E5M FROM CENTURY FASHIONS

MBABANE – Eswatini Revenue Authority is demanding E5 340 462.09 from Century Fashions in Mbabane.

The aforementioned amount according to SRA was allegedly for tax liability is respect of Valued Added Tax (VAT) for the periods April- December 2012. The authority has also frozen the bank account of the popular Mbabane clothing outlet held with Nedbank (Swaziland) Limited. Through its lawyers, Century Fashions has since taken the commissioner general of SRA to court where it is inter alia seeking an order interdicting him from invoking Section 44 of the VAT Act of 2011.

Lock

Section 44(1) provides that: “Where a person is liable for tax has failed to remit the amount payable by that person within the prescribed time, the commissioner general may lock up and seal the business premises of that person and thereafter the goods in their business premises shall be deemed to be attached and at the disposal of the commissioner general. The clothing outlet is also praying for an order directing SRA to lift the freeze on its bank account, number 020000639557, held with Nedbank (Swaziland) Limited. Century Fashions further wants the High Court to interdict SRA from instituting any collection and/or recovery proceedings for any tax liability due. In his founding affidavit, the Director of the company Mohammend Asraful Chowdhury submitted that due to the large number of invoices, the applicant ( Century Fashions) relied  on imported goods and input VAT on local purchases, it generally prepared a spreadsheet of these invoices per period for ease of preparation of the tax returns.

Liability

“The alleged tax liability in question arose as a result of such inadvertent hum error. The applicant’s agent mistakenly recorded the TIN number of Tandoori Restaurant instead of that of the applicant on the declaration forms when declaring the goods imported into the country,” contended Chowdhury. According to Chowdhury, the declaration forms were supported by invoices to the applicant from its suppliers.  He averred that this inadvertent error was not noticed by SRA’s customs officials at the port of entry. These are allegations whose veracity is still to be tested in court and SRA is yet to respond. 

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: