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Your email address will not be published.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

Job Opportunities

World Travel Centre Seeks Senior and Junior Consol Travel Consultants

Neil SteedmanFebruary 23, 2018
Irish Ferries Alton Towers 1

Irish Ferries Unveils New Season Deal at Alton Towers

Neil SteedmanFebruary 23, 2018
IMG_4004

Aer Lingus Roadshow Attracts Large Trade Numbers in Dublin

Michael FloodFebruary 22, 2018
Commission for Aviation Regulation

CAR Publishes Decision Paper on KPIs for Travel Trade Licensing

Neil SteedmanFebruary 22, 2018
Andrew Flintham, Managing Director, TUI UK & Ireland

Andrew Flintham Appointed Managing Director TUI UK & Ireland

Neil SteedmanFebruary 22, 2018
SuperBreak Tower of London

SuperBreak Introduces Six New London Bundles

Neil SteedmanFebruary 22, 2018
Travelport NDC Content

Travelport Announces New Products Enabling Airlines and Agents in NDC Era

Neil SteedmanFebruary 22, 2018
Qatar Airways A350-1000

Qatar Airways Takes Delivery of World’s First Airbus A350-1000

Neil SteedmanFebruary 22, 2018
Shannon Airport

Positive 2018 Continues for Shannon Airport with New Routes to Liverpool and Bristol

Neil SteedmanFebruary 22, 2018

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