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The decision by the government to give Great<a href="https://news.pindula.co.zw/2021/01/27/company-linked-to-tagwireis-landela-mining-great-dyke-investments-granted-a-tax-holiday/"> Dyke Investments(GDI) a tax holiday</a> has been challenged at the High Court. According to Zimbabwe Lawyers for Human Rights (ZLHR), Dumisani Dube is seeking the suspension of SI26/2021 that gives GDI a tax holiday because it is unconstitutional.
<blockquote>Urgent application has been filed seeking suspension of SI 26/2021. Dumisani Dube represented by <a class="css-4rbku5 css-18t94o4 css-901oao css-16my406 r-1n1174f r-1loqt21 r-poiln3 r-bcqeeo r-qvutc0" dir="ltr" role="link" href="https://twitter.com/ZLHRLawyers" data-focusable="true">@ZLHRLawyers </a>Tanaka Muganyi, argues that exemption of Great Dyke Investments Pvt Ltd from paying taxes is unconstitutional, it violates the right to equal protection of the law.
SI 26/2020 also violates sec 298(1) of Const on principles of public finance management, sec 298(1)(b)(i) on burden taxation that must be shared equally.</blockquote>
Tagwirei&#8217;s Landela Mining Venture according to <a href="https://www.financial-world.org/news/news/business/6019/zimbabwes-landela-mining-to-purchase-four-stateowned-gold-mines/">Financial World</a> and another company called Fossils Mining according to Tendai Biti reportedly own 50% of Great Dyke Investments and the other 50% is owned by a Russian company Vi Holding (through its JSC Afromet subsidiary).
Source: <a href="https://twitter.com/ZLHRLawyers/status/1357667427081981957">ZLHR</a>

Pindula News

Govt's Decision To Exempt Tagwirei Linked Company Great Dyke From Paying Taxes Challenged

Great Dyke Investments a mining venture that is jointly owned by Russia&#8217;s Vi Holding (through its JSC Afromet subsidiary) and Zimbabwe&#8217;s Landela Mining Venture according to <a href="https://www.businesslive.co.za/bd/companies/mining/2020-12-13-great-dyke-earmarks-us650m-investment-in-zimbabwe-platinum-project-by-2022/#:~:text=GDI%20is%2050%25%20owned%20by,is%20expected%20to%20be%20completed.">Business Live South Africa</a> has been granted a 5 year tax holiday by the government of Zimbabwe.
Landela Mining venture is linked to businessman Kuda Tagwirei who reportedly holds a controlling stake in the company according to <a href="https://www.financial-world.org/news/news/business/6019/zimbabwes-landela-mining-to-purchase-four-stateowned-gold-mines/">Financial World </a>
The news of Great Dyke Investments (GDI) which is expected to start mining in Darwedale next year being granted a tax holiday came to light through General Notice 77 of 2021 which stated that:
<blockquote>General Notice 77 of 2021.
INCOME TAX ACT [CHAPTER 23:06]
Declaration of holder of special mining lease as approved holder for purposes of exemption from certain taxes
THE Minister of Finance and Economic Development, in terms of section 36 of the Income Tax Act [Chapter 23:06], hereby declares Economic Great Dyke Investment (Private) Limited company to be an approved holder of a special mining lease with effect from 1st January, 2020. for purposes of sections 26,30,31 and 32 of the Act in respect of non-resident tax chargeable on
(a) dividends payable to any non-resident shareholders of Great Dyke Investment (Private) Limited in connection with special mining lease operations of Great Dyke Investment (Private) Limited.
(b) fees payable to non-resident person for services performed by them in connection with special mining lease operations, but not remittances payable to the parent company in respect of management services.
(c) remittances effected in respect of allocable expenditure in connection with special mining lease operations, but not remittance payable to the parent company in respect of management services.
(d) royalties to any non-resident persons in connection with special mining lease operations.
HON. MTHULI NCUBE,
27-1-2021. Minister of Finance and Economic Development.</blockquote>
<img decoding="async" loading="lazy" class="alignnone wp-image-194714 size-full" src="https://t792ae.c2.acecdn.net/wp-content/uploads/2021/01/GDI-tax-holiday.jpeg" alt="" width="911" height="1080" srcset="https://news.pindula.co.zw/wp-content/uploads/2021/01/GDI-tax-holiday.jpeg 911w, https://news.pindula.co.zw/wp-content/uploads/2021/01/GDI-tax-holiday-253x300.jpeg 253w, https://news.pindula.co.zw/wp-content/uploads/2021/01/GDI-tax-holiday-864x1024.jpeg 864w, https://news.pindula.co.zw/wp-content/uploads/2021/01/GDI-tax-holiday-768x910.jpeg 768w" sizes="(max-width: 911px) 100vw, 911px" />
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Company Linked To Tagwirei's Landela Mining, Great Dyke Investments Granted A Tax Holiday

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