HIGH Court of Tanzania has dismissed a suit filed by Dubaibased firm, Rental Services and Solutions (RSS) against Tanzania Electricity Supply Company (TANESCO) and Symbion Power Tanzania Limited.
Commenting on the ruling in Dar es
Salaam over the weekend, Symbion Power Senior Vice President for
Communications and Public Affairs Adi Raval said, “The High Court’s
ruling justifies and corroborates Symbion’s position that the suit was
spurious.”
He said they have been pleased by the
ruling, describing the lawsuit as frivolous and simply aimed at
embarrassing the defendants. The suit contained a number of strange
claims and was perpetrated by the company that had operated illegally in
Tanzania for almost three years, denying the Tanzanian government a
colossal amount of money in tax revenues.
Raval said, “We were shocked when we
discovered that this subcontractor was neither a properly registered
business nor paid corporate tax of 30 percent like other companies which
operate in Tanzania.
In comparison, during the same time,
Symbion Power Tanzania paid the Tanzania Revenue Authority about 50
million US dollars in tax.
” RSS filed the lawsuit at the High
Court in April, this year, accusing Symbion and Tanesco of failure to
pay it 28 million dollars (over 57m/-) of the 77.6 million dollars it
earned in revenue from power sales during the period of the contract.
RSS, a generator and air cooling rental
firm, supplied equipment to Symbion for emergency power in Dodoma and
Arusha. During the time RSS was based in Tanzania and had expatriates
and local staff for its operations.
However, Symbion argued against paying
RSS any more money than they had already been paid in case they default
on paying TRA what they owe them. Tanzanian law requires all companies
operating in Tanzania to pay corporation tax and VAT
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