Supreme Court rules against The Post in ZRA case
Supreme court
Post Managing Director Fred Mmembe
The Supreme Court has ruled in favour of Zambia Revenue Authority in the case where the High Court granted the Post Newspapers a stay which prevented ZRA from levying distress on the Post.
Events leading to this appeal were that The Post Newspapers Limited commenced judicial review proceedings challenging the decision of the Commissioner General to reject the Post’s proposal to pay its tax liabilities in installments.
The Newspaper firm was also challenging the Commissioner General to respond to a letter which was addressed to Commissioner Domestic Taxes.
In its judgment dated June 13, 2016, the Supreme Court reversed and set aside the ruling of November 10, 2015, by the High Court.
The Supreme Court agreed with ZRA that the learned trial Judge erred in law, in granting, “stay of execution”, after he had held that the Post Newspaper’s pending appeal had no prospect of succeeding.
It noted that in fact, the learned trial Judge granted the “stay” purely for the convenience of the Post Newspaper.
The Supreme Court stated that Courts should not be swayed by sympathy into making moral judgments.
The Supreme Court also agreed with ZRA that the High Court erred in law when it granted the stay for 90 days after the decision of the Supreme Court, on the pending appeal.
The Supreme Court stated that the High Court went beyond its jurisdiction as the High Court tried to exercise the powers of the appellate court.
Further, the Supreme Court noted that the pending appeal by the Post Newspaper did not question the amount due and agreed with ZRA that in issuing of the stay, the High Court disregarded Section 77 Clause 4 of the Income Tax Act, which requires that Tax be
The Supreme Court upheld ZRA’s appeal on the basis that the High Court ought not to have granted the stay since there was nothing to stay as the judgment in issue was not capable of being stayed.
The appeal was allowed with costs to ZRA, to be taxed in default of Agreement.
On October 30, 2015, the High Court delivered its judgment in which it dismissed the Post’s motion for judicial review for want of merit.
Following the dismissal of its motion for judicial review, the Post Newspaper applied for a stay of execution of the judgment pending appeal.
On the 10th day of November, 2015, the High Court delivered its ruling and granted the Post Newspaper a stay which prevented ZRA from levying distress on the Post.
It is against the ruling of November 10, 2015 that ZRA appealed to the Supreme Court.