SOUTH AFRICA — The South African Revenue Services (SARS) has said that the minibus taxi industry in the country pays R5 million only in corporate annual income tax, despite having an annual turnover of over R16.5 billion.
This revelation was made by Finance Minister Tito Mboweni who was responding to parliamentary questions about the industry’s tax contribution.
The ministry pointed out that the corporate tax by the minibus taxi is actually lower than R5million since this amount includes tax collected from the sector’s employment income.
“This is because the industry does not correctly disclose income from taxi business on their CIT returns but [includes it] under a generic income source code. We were not able to determine income solely from taxi operations.
“Our analysis indicates that majority of the taxi industry is declaring a nil return or are having a refund due to them. “ said Mboweni in a statement.
A breakdown by SA taxi which is the country’s largest financier to the industry shows that 69% of local households use minibus taxis.
The minibus taxi industry transports 15 million commuters in South Africa and is estimated to have a turnover of more than R16.5 billion annually.
The taxi industry has 20 000 owners and 200 000 employees.
SARS is now under new commissioner Edward Kieswetter who has vowed to leave no stone unturned when it comes tax collection.
“SARS is concerned about tax avoidance across the tax ecosystem in general; this is more so in this particular industry; to this end, Sars adopting a number of targeted interventions.” He said.
SARS has embarked on a compliance plan for the industry to encourage voluntary compliance and potentially propose an approximate tax regime specifically for the Minibus Taxi industry.
TANZANIA — AAR Healthcare Tanzania Ltd is under liquation effective from April 22, 2021 following financial struggles the unit is facing.
Joint liquidators Nelson Emmanuel Musya and David Timothy Tarimo of Pricewaterhouse Coopers have in a statement notified the public and creditors that they have assumed control of the company’s assets and are receiving claims under the ensuing circumstances.
“to enable any claim you may have against the company to be duly adjudicated and considered in the distribution of any realisations from the sale of the assets of the company, please send to the liquidators particulars of any claim.” Read the statement.
“The company will shut down all of its operations effective Sunday, 25th April 2021.”
In March, Parent company AAR-Healthcare Holdings headquartered in Kenya had announced that it has stopped to provide bailout funds hence opting for its closure.
“AAR Healthcare Holdings is no longer willing to support the financial requirements of Aar Tanzania Ltd and on this basis the board of directors resolved to initiate a creditors’ voluntary winding up process.” Chief Executive of AAR Tanzania said.
As part of the winding up process, the company’s creditors converged for a meeting to formally agree on appointing liquidators on April 22.
According to Tanzania’s Companies Act of 20002, “the creditors and the company at their respective meetings mentioned in section 347 may nominate a person to be liquidator for the purpose of winding up the affairs and distributing the assets of the company.
“If the creditors and the company nominate different persons, the person nominated by the creditors shall be the liquidator.”
AAR was established in 1984 in Kenya and has been in Tanzania for a decade, having been introduced in the country in 2017 as a health insurer.
DURBAN, South Africa — South African banks have admitted to putting less effort in supporting black businesses financially.
The banks have however justified themselves saying they are looking at the interests of their depositors.
The South African Bankers Association (Basa) which represents 36 banks has recognized that banks ought to do much for the economy to better reflect the country’s demographics.
The banks added that total empowerment financing in 2019 dropped by 19.5% equivalent of R203.7 billion while exposure to Black Economic Empowerment deals dropped by 35% from the previous year to R107bn in 2019.
Dr Azar Jammine, chief economist at Econometrix said that regardless of the race, small businesses faced challenges when seeking financial assistance from the country’s financial institutions.
He added that this has made most small entrepreneurs give up hope of approaching traditional banks.
“I am a small white businessman, and I have struggled with the banks as well.
“The principle is that it is easier to ask for a billion-dollar loan than to ask for a R10 000 loan very often because if you ask for a billion-dollar loan, you are seen as a big player, and the banks are interpreted as being more sympathetic to that kind of situation,” he said.
Basa said that in 2019, members implemented transformation to support broad-based black empowerment (B-BBEE). However, this is yet to be felt by associations of black entrepreneurs.
Black businesses are calling for a speedy establishment of the state-owned bank and an expansion of the Land’s Bank’s mandate.
Black businesses still remain in the economy while enduring discrimination from the banks.
Basa has however denied allegations of racial discrimination stating that its members “opposed all forms of discrimination and promised to treat all customers fairly.”
NAIROBI, Kenya — Churchill Show comedienne Jemutai has shared DNA results confirming that fellow comedian Professor Hamo is the father to her two kids.
She disclosed the DNA results on her social media pages which show a 99.9% compatibility.
She wrote, “DNA RESULTS ARE OUT 99.9%”
The results come days after the comedienne claimed that Professor Hamo had requested for a paternity test.
She also disclosed to blogger Edgar obare that with the intervention of their boss Churchill, the two are trying to sort out their issues adding that Hamo had agreed to pay school fees for the firstborn and has already given the required amount.
“Yes, that was me, Hamo and his brother we were at Big Square on Wednesday. We met on Monday with Churchill and a few guys to try and sort out issues. We are still sorting out issues. At the meeting he agreed to pay for the school fees, so tulimeet on Wednesday as agreed and he gave me the school nkalipa jana… the DNA will be out in 2 weeks.
We did the DNA on Tuesday at KEMRI,” Jemutai wrote.
Churchill on the other hand confirmed meeting the two adding that they will handle the matter privately.
“We have had a long cordial talk with Hamo & Jemutai and agreed to deal with the matter privately and find an amicable solution..in the end the kids have to win. Have a blessed Sunday,” said Churchill.
The controversial relationship between the two comedians was made public by Jemutai who sought help from Obare to help her sell her Facebook account so as to provide for her kids and pay rent.
She claimed the comedian neglected his kids and she has been raising them on her own.
Jemutai also revealed that she and Professor Hamo’s wife are in good terms and there’s no bad blood between them.
TANZANIA — Tanzanian actress and Fashionprenuer Jacqueline Wolper has welcomed a baby boy with baby daddy Rich Mitindo.
The new mom took to Instagram to share the good news with her massive followers while appreciating her partner.
“I pray that the love and respect you have bestowed upon me last a lifetime. You are the only man who has given me joy and changed my name from Jacq to mother. Even though it is a small matter before God, it is a big deal for me,” she posted
Before dating Bongo musician Harmonize, the actress was in a relationship Rich. She narrated how they met captioning, “We started seeing each other in 2016, I wronged him, and we went our separate ways. But he never resented me.
“After getting into several relationships, we met again in 2020 when both of us were single.”
Wolper’s relationship with Harmonize ended in 2017 after they accused each other of cheating.
The actress claimed Harmonize was unfaithful and that he was back together with his girlfriend Sarah.
“As a couple, we never had an issue posting photos of us together on social media. However, when Harmonize asked me not to post pictures of my birthday party, which he threw for me, I was suspicious. I later learnt he was back with his ex-girlfriend, Sarah,” she said.
Harmonize on the other side said that they broke up because Wolper, allegedly wanted to sleep with his former boss Diamond Platinumz.
Rich Mitindo is a popular Fashion designer and businesswoman.
KAMPALA, Uganda — Police and army in Uganda have tightened security in Kampala, warning of traffic interruption ahead of President Yoweri Museveni’s inauguration ceremony.
The inauguration will be held on May 12 at Kololo Independence Grounds and is expected to attract 4,000 guests including heads of states and foreign dignitaries.
“There will be traffic disruption along Entebbe Road and in most of the routes leading to Kololo Ceremonial Grounds.” Said the traffic commander for Kampala Metropolitan Police, SSP Norman Musinga.
Musinga added that the John Babiiha Avenue which stretches from city Oil in kwamkoya along kira road up to Fairway traffic lights along Yusuf Lule road will be closed and only dignitaries will be allowed.
He also added that fuel tanks will not be allowed in the central business district as from May 11 evening.
Elected parliamentarians have been instructed to drive in their personal vehicles to parliament. They will be picked from there by parliamentary buses which will drop them at Kololo airstrip.
Police spokesperson CP Fred Enanga had earlier on said that security operatives were monitoring some of the disgruntled supporters who have allegedly issued violence threats ahead of the inauguration.
“In addition, our Joint Operation Command Centres across the country, are fully alert, with the relevant Intel, operative and investigative components; operating 24/7. They are closely monitoring a wide-range of potential threats especially acts of domestic extremism, external influence , radical behaviour and closely monitoring all our border areas and crossing points, especially in West Nile region. He added.
Museveni who has been in power for 35 years will be inaugurated for his sixth term in office following his win in the January 14, 2021 elections.
He garnered 58% of the presidential votes, defeating his rival Robert Kyagulanyi who got 35%.
KENYA— Kenya has suspended its flights to and from Somalia for three months.
Kenya Civil Aviation Authority (KCAA) has issued a notice to Airmen (Notam) saying flights departing to or arriving from Somalia will not be allowed for three months effective from May 11 to August 9.
KCAA said only humanitarian deliveries and medical evacuation flights will be allowed into the country from Somalia.
The aviation regulator has not explained why the flights have been suspended but instead said the government has issued a directive to restrict air traffic between the two countries.
This means that all scheduled flights to Somalia will be cancelled. Flights from Somalia passing through the Kenyan airspace will be exempted as well as military flights which are not under the jurisdiction of KCAA.
This announcement comes just as Somalia’s president Mohamed Farmaajo was heading to Uganda to attend the inauguration of PresidenT Yoweri Museveni.
This suspension comes just a few days after the two countries mend their democratic ties following intervention from the Emir of Qatar. Mogadishu later announced that it was reopening its diplomatic channels.
In December Somalia had shut down its diplomatic channels, protesting against Kenya for interfering with its governance.
Somali officials however clarified that the resumed relations do not involve lifting the ban on miraa trade or discussions on the maritime dispute which is currently at the International Court of Justice awaiting verdict.
Somalia has also not indicated when its ambassador to Kenya Mr.Mohamud Nur Tarsan will resume.
Tarsan was recalled to Mogadishu and Kenya’s ambassador to Somalia Mr. Lucas Tumbo was returned to Nairobi following the democratic dispute.