EasyJet founder caught up in tax wrangle in Tanzania
An airline backed by easyJet founder Sir Stelios Haji-Ioannou has been accused of owing more than a million pounds in taxes in Tanzania.
FastJet now faces a huge bill for unpaid pay roll and property taxes as well as airport departure charges from January to November last year.
A report in the Daily Telegraph said Tanzania’s tax man, which carried out an audit last month, found the company owed a total of £1.1million, including fines and interest.
The airline, which is listed in London, is also facing a £1million legal claim over allegedly unpaid fuel and maintenance bills in Kenya and a £4.4 million claim from the founder of the airline Donald Smith relating to allegations of unpaid debts.
FastJet 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.
A spokesman for the airline told the Telegraph: "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."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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