Kakobe's church,family company clears Sh58 million in TRA tax arrears

What you need to know:

  • This comes hardly two months after the outspoken clergy announced publicly that he was richer than the government, prompting the taxman to launch investigations into the source of his wealth and the amount he pays in tax.

 Full Gospel Bible Fellowship Church Bishop Zachary Kakobe has cleared Sh58.1 million in tax arrears, the Tanzania Revenue Authority (TRA) has said.

This comes hardly two months after the outspoken clergy announced publicly that he was richer than the government, prompting the taxman to launch investigations into the source of his wealth and the amount he pays in tax.

The TRA Commissioner General, Mr Charles Kichere said in December last year that the taxman was investigating the clergyman with a view to finding out whether the wealth he (Bishop Kakobe) claims to have results from offering only or from other economic activities.

But in a briefing today (Monday, February 20, 2018), Mr Kichere said investigations have found out that Mr Kakobe’s church and some members of the clergyman’s family had dodged in payment of tax amounting to Sh58 million, resulting from its (the church’s) investment activities.

“The investigation shows that the church escaped to pay Sh20.8 million as tax from its investment in the capital market while a company owned by his (Mr Kakobe’s) children dodged to pay Sh37.2 million. The money is already paid,” said Mr Kichere.

Money in buckets

According to TRA boss, the investigations further revealed that the church preserves a huge amount in plastic buckets and that its (the Church’s) bank transactions do not involve security organs, which, he said, exposed it safety challenges.

Furthermore, it was established that the church lacks openness in its revenue and expenditure dealings.

Apology to JPM

“During the investigation, Bishop Kakobe wrote an apology letter to President John Magufuli following his statement that he has more money than what the country has,” he added.

No personal bank account

TRA investigations further revealed that Bishop Zachary Kakobe himself had no bank account in any of Tanzania’s 58 commercial banks.

The clergyman, said Mr Kichere, is however a signatory of the church’s bank account held at the National Bank of Commerce (NBC).

The account has a total of Sh8.1 billion.