Walter Magaya’s church, Prophetic Healing and Deliverance Ministries (PHD), has denied charges of tax evasion as the trial commenced before Regional Magistrate Hosea Mujaya.
PHD ministries are accused of failing to remit tax for over US$28 million realised from sales of wristbands, church regalia, anointed oil and water which they have refuted in court indicating that they do not carry any trade.
PHD Ministries, through its defence lawyers, Admire Rubaya and Everson Chatambudza indicated that the church does not realise any taxable income as it relies on donations and tithes which are not taxable:
The accused as an ecclesiastical institution did not realise any taxable income during the relevant period in question.
he accused only received donations, tithes, offerings and contributions from its members, it, therefore, had a justifiable cause not to submit the alleged income tax returns for it did not realise any taxable income as a church in the manner as prescribed by law.
Any money which was paid into Walter Magaya and his wife’s bank accounts and not declared to ZIMRA as the remuneration of the two are a part donation, offerings and tithes.