Allexer Namundjembo
The High Court has ruled against Trustco Group Holdings, dismissing its application to challenge two decisions made by the Namibia Revenue Agency (NamRA) about its unpaid taxes.
Trustco had argued that NamRA owed it N$136 million in VAT credits, which it wanted to use to reduce interest on its tax debt.
Trustco claimed that NamRA owed it about N$136 million in VAT credits as of March 2020. Trustco further argued that these credits were related to VAT, withholding tax, and PAYE obligations, and that an agreement had been made to use the credits to reduce accrued interest on outstanding balances.
Despite this, NamRA issued a demand in September 2022, requiring Trustco entities to settle their tax arrears for liabilities up to 31 December 2019 by 31 May 2023.
Trustco challenged the demand in court, arguing that NamRA violated its constitutional rights, especially the right to a fair hearing and the principle of lawful, reasonable, and fair administrative action.
In its affidavit, NamRA denied the allegations of unfairness or irrationality. The agency stated that Trustco had been given enough opportunity to respond and make representations.
NamRA also rejected claims of acting with ulterior motives and insisted that no legal errors were made in handling Trustco’s tax matters.
Court documents revealed that only 38 entities within the Trustco Group had a payment arrangement with NamRA. Trustco’s total tax liability stood at over N\$230 million by June 2021, and this rose to nearly N\$593 million by December 2023.
The court dismissed Trustco’s application, rejecting its request to review the decisions made in letters dated October 3 and October 20, 2022.
The company’s attempt to have sections of the Income Tax Act and Value-Added Tax Act declared unconstitutional was also dismissed.
The case was heard by Justice Thomas Masuku Prinsloo, Justice Shafimana Ueitele, and Deputy Judge President Hosea Angula.
The matter has been removed from the roll and is now considered finalised.
