Trustco, Led By Quinton Van Rooyen, Loses 11 Million Tax Case

Trustco lost its court bid against NamRA, clearing the way for tax recovery efforts through commercial banks.

The High Court upheld NamRAs authority and dismissed Trustcos constitutional challenge to Namibias Income Tax and VAT laws.

Despite legal and financial troubles, Trustco is pursuing a Nasdaq listing to expand internationally and counter mounting domestic pressures.

Trustco Group Holdings, the investment firm led by Namibian businessman Quinton van Rooyen, has been dealt a significant setback in its long-running tax dispute with the Namibia Revenue Agency NamRA. The High Court dismissed Trustcos application, clearing the way for the state to continue efforts to recover unpaid taxes directly through commercial banks.

In a ruling delivered last week, the court sided firmly with NamRA, confirming the agencys power to appoint banks as agents to collect outstanding debts. It also threw out Trustcos constitutional challenge against parts of the Income Tax and VAT Acts. Adding to the companys troubles, the court ordered Trustco to cover the states legal costs.

Trustco's tax troubles began with a NAD136 million 7.44 million VAT refund claim, which quickly snowballed when NamRA issued revised assessments. The agency demanded NAD201.7 million 11.03 million in taxes, alongside NAD103.8 million 5.68 million in interest on income tax, VAT, and withholding tax. In October 2022, NamRA froze 42 Trustco-linked accounts, demanding partial payment within weeks. Trustco responded with accusations of irrational conduct and claims that the payment deferral agreement had been breached.

The dispute was primarily centered around Trustco's constitutional challenge to Sections 91 and 36 of the Income Tax and VAT Acts, arguing that these laws gave NamRA excessive power. However, the High Court rejected the challenge, reaffirming the tax agency's legal authority.

Trustco maintains it paid NAD63.4 million 3.47 million between March and October 2020 and, after offsets, owed just NAD7.8 million 426,559of which NAD2.7 million 147,655 was paid in October 2022. Floors Abrahams, the companys executive financial director, criticized NamRAs sudden demands: When NamRA owed Trustco, it didnt pay. But now, it wants everything back immediately.