TANZANIA: Lupita Lodge investor probed over alleged tax evasion

Written by PETI SIYAME in Sumbawanga

THE Tanzania Revenue Authority (TRA) in Arusha is probing tax information regarding a Tanzanian national of British origin, Mr Tom Lithgow, who owns Lupita Lodge located at Lupita Island in Rukwa Region, over allegations of tax evasion.

The TRA (in Arusha) has also instructed its counterpart in Rukwa to visit the investor’s Lodge at Lupita island, located in Kipili village, along the shores of Lake Tanganyika in Nkasi district, to assess the extent of his businesses in the region.Rukwa TRA Manager, Mr Philip Kimune, has said here that the measures were taken after whistle blowers in the region reported to TRA officials that the investor has been evading tax. 

"I have contacted colleagues in TRA Arusha who assured that they were investigating the matter seriously, while at the same time checking their records to establish whether the investor has been evading tax or not," Mr Kimune said.He told the ‘Sunday News’ here that he planned to visit Kipili in Lupila Island to establish the size of the businesses the investor is running, saying he received response from them that they will cooperate.

According to Mr Kimune, the investor’s lodge was registered in Arusha, which gives the Arusha TRA an upper hand to deal with the matter.However, efforts by this reporter to get clarification from Lupita Lodge management on the tax evasion allegations proved futile, after several attempts to reach the managers failed.

Last month, the ownership of Lupita  Lodge management was  a  subject for investigation  by  the Ministry  of Lands, Housing  and Human Settlement  Development.The Minister for Lands, Housing and Human Settlement Development, Prof Anna Tibaijuka,  was  quoted saying that she had  already directed  the director  of legal  affairs  at the ministry to probe  the matter  and  submit the findings to the ministry  as  soon  as  possible.

Through text message, Prof Tibaijuka  told  this paper that  her ministry  considered Mr Tom Lithwog’s ownership  of  Lupita  Island  illegal  because  no legal  documents were  available  at the ministry  to establish  the legality  of  such possession.The Deputy  Minister of State  in the  Prime Minister’s Office, Regional Administration  and Local Government, Aggrey Mwanri, directed  the Rukwa  Regional  Commissioner, Eng. Stella Manyanya  to conduct thorough  investigation on  what was  going  on with Lupita Island Lodge along the shores  of  Lake Tanganyika.

Mr Mwanri also tasked  the Rukwa  regional  security  organs to  investigate  allegation  of sale  of weapons  through Lupita  Island  Lodge to neighbouring  Democratic  Republic  of Congo  (DRC).Mr Mwanri reacted in that manner when addressing a Public rally held at Msakila Secondary School grounds in Sumbawanga town. His remarks  followed  concerns  by  local  residents  of  the islands surrounding the lodge  that the investor  was humiliating  them.

The  deputy minister  also banned the investor  from  restricting the residents  from carrying out  their economic  activities,  including   fishing  on Lake Tanganyika and  that  no  one  should be  restricted  from passing  near  the tourist lodge.RC Manyanya was quoted  as saying  that  it  was too early  to comment  on the allegations  that  the investor  was also  engaged in illegal  arms  smuggling  to DRC, saying; “This  allegation needs serious investigation.”

On the website  of his company, Tanzania  by Firelight, Lupita  Island Lodge  is one of  the  company’s  luxury  tented  camps  as it reads “ Lupita Island  is the  ultimate private  retreat, offering  luxurious  accommodations  set  amidst  pristine  natural  habitat.”Located on Lake Tanganyika  in Western  Tanzania , the 130-acre  private  island  resort  has eleven  lavishly  decorated, thatched  living  spaces  and two  family  cottages that offer uninterrupted  view of Africa’s  second  largest lake,” the  company  says  on its  website posting.

Source: Daily News (11/11/2012): http://dailynews.co.tz/index.php/local-news/11494-lupita-lodge-investor-probed-over-alleged-tax-evasion