News

FastJet Faces Tanzanian Tax Claim

FastJet Faces Tanzanian Tax Claim

FastJet, the African airline backed by easyJet founder Sir Stelios Haji-Ioannou, is facing a million pound tax claim from Tanzanian authorities. The London listed company’s Tanzanian arm was found not have paid pay roll and property taxes as well as airport departure charges from January to November last year.

In a tax audit last month the Tanzanian taxman found the company owed 1.9bn Tanzanian shillings and $252,700, according to a report in the Daily Telegraph. With interest and fines, the total sum owed came in at 2.8bn shillings (£1.1m) and $651,300 (£414,200). The sums do not take into account any corporation tax the company may owe.

Fastjet Logo

Other demands and legal cases faced by the airline include £1 million in claims over allegedly unpaid fuel and maintenance bills in Kenya, a £4.4 million claim from the founder of the airline Donald Smith relating to allegations of unpaid debts, and a dispute with the Ugandan Civil Aviation Authority.

The airline was created after African conglomerate Lonrho sold its aviation division Fly540 to listed cash shell Rubicon. Sir Stelios was brought on board to add his branding and expertise to the venture. Under his agreement with FastJet, Sir Stelios has the right to appoint one person to the board of the airline. It is understood that as yet no one has taken up the position on his behalf.

A spokesman for FastJet said: “The matter in question is a legacy issue inherited from the Fly540 operation. FastJet works closely with the Tanzanian government to properly address all historic issues relating to tax.”

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 50 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 40 years.

More in News

Aer Lingus Seattle

Aer Lingus Announces New 
Direct Route to Seattle

Neil SteedmanNovember 17, 2017
Awards eNews Story 3

Four Province Winners of ITTN Travel Agency of the Year Awards Announced

Neil SteedmanNovember 16, 2017
Martin Skelly

Martin Skelly to Chair Irish Travel Industry Summit

Neil SteedmanNovember 16, 2017
Irish Travel Trade News Awards 2016, held at the Clayton hotel, Burlington Road, Dublin . November 2016

Win Big Prizes at the Irish Travel Trade Awards!

Neil SteedmanNovember 16, 2017
Skytours Home Page

Skytours Seeks Full-Time Senior Travel Sales Consultant

Neil SteedmanNovember 16, 2017
Air Transat New Livery

Air Transat Unveils New Livery as it Celebrates 30th Anniversary

Neil SteedmanNovember 16, 2017
Imelda McCarthy 2 Photo

Imelda McCarthy Becomes the 70th Travel Counsellor

Michael FloodNovember 16, 2017
Catalonia

Catalonia 2018: The Year of Culture

Neil SteedmanNovember 16, 2017
Clayton Hotel Burlington Road Exterior

Industry Summit on Leisure Travel Opportunities and New EU Package Travel Directive

Neil SteedmanNovember 14, 2017

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland