Zimbabwe Revenue Authority v Murowa Diamonds (Private) Limited

Key Issues

• {"issue_text":"Whether, notwithstanding the repeal of s 15(2)(f)(iii) of the Income Tax Act, royalties payable under s 244 of the Mines and Minerals Act constitute an allowable deduction under the general deduction formula, s 15(2)(a) of the Income Tax Act","issue_type":"law","dispositive":"yes","related_facts":"Disallowance of royalty deductions for 2014 and 2015 tax years"}
• {"issue_text":"Whether mining royalties constitute capital or revenue expenditure","issue_type":"law","dispositive":"yes","related_facts":"Nature of royalty payments under s 244 of Mines and Minerals Act"}
• {"issue_text":"Whether the penalty imposed by the appellant was justified","issue_type":"law","dispositive":"no (court did not need to decide this as it found royalties were deductible)","related_facts":"100% penalty for tax shortfall"}

Background