At last FastJet, owner of
Fly540 airline, has agreed to pay debts amounting to billions of shillings it
owes the Tanzania Revenue Authority (TRA) and Tanzania Airports Authority (TAA).
For almost a month
FastJet has been passing the buck to Fly540 (T) Ltd over payment of debts
totalling over Sh4 billion to TRA and TAA.
FastJet has been maintaining
that Fly540 was supposed to pay the debts under a contract for taking over the
airline. The new turn of events arose yesterday when the FastJet general
manager for Africa, Mr Kyle Haywood, told a press conference that they were
ready to pay the debts pending proper reconciliation by TRA and TAA.
“We have met with
TRA and TAA to discuss the pending bills. We will pay, but we want supporting
documents of all these bills. We are in discussion with TRA, for we have to
validate what are paying,” said Mr Haywood.
According to
documents availed to The Citizen, the airline owes to TRA a total of Sh2.9 billion
and TAA a total of Sh570 million.
In a letter Ref.
No. EC.30/158/01.B61, dated February 12, 2013, TAA said it wants the debtor,
FastJet, to effect the payment of debts amounting to Sh570,668,242 and
Sh152,596,000 ($95,360) within three days.These are outstanding debts on
landing and parking charges.
In the latest
move, TRA claims in a letter, whose copy was availed to the media, that the
airline has not met its obligations. They include tax liabilities such like Pay
As You Earn (PAYE) as per payroll analysis amounting to Sh456,317,637 and PAYE
difference with accounts worth of Sh987,517,985.
Other categories
of tax claims include Skills Development Levy (SDL) amounting to Sh117,872,376,
SDL per differences with final accounts of Sh237,004,317, final rental tax of
Sh70,877,283, stamp duty amounting to Sh15,708,037 and departure tax of
Sh951,562,012.
Dated December 3, 2012, the
document states that the scope of TRA audit of tax liabilities facing the
airline included corporate tax remittance from 2009 to 2011, PAYE, SDL from
January 2009 to November 2012 and Rental as well as Stamp Duty from 2009 to
2012.
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