Turnall says negotiating with taxman over $9mln debt

Turnall says negotiating with taxman over $9mln debt

HARARE, April 1 (The Source) – Struggling building materials manufacturer Turnall holdings owes up to $9 million in unpaid taxes and has stopped making payments to its pension fund but is negotiating to settle the debt, an official has said.

As at 2013, the company owed the Zimbabwe Revenue Authority (Zimra) $7,2million in unpaid taxes,  with the debt rising to $9 million last year.

Turnall managing director Caleb Musodza said the taxman was not likely to institute any garnish orders as the company was in talks with Zimra to settle the debt.

“Approved payment plans are in place and meetings with ZIMRA happen often to apprise them of the current performance of the company,” he said.

Turnall’s after tax loss widened to $11,9 million in the full year to December from $4,3 million reported in the prior year.

Musodza said the company’s pension fund was in ‘paid up’ status to avoid incurring any further charges.

A paid up fund is one where no further contributions are payable and no further benefits accrue though members are still entitled to the preserved benefits.

The company last made contributions to the fund in August last year and has an outstanding balance of $3 million.

“The pension fund is in a paid up status we stopped contributions in August 2014 and we are dealing with debt slowly,” said Musodza.