Judgment No. 23/18 Civil Appeal No. SC 145/15 provisions of the 17th Schedule at the rate of tax fixed from time to time in the charging Act”. The 17th Schedule to the Act provides in paragraph 1: “(1)… “fees” means any amount from a source within Zimbabwe payable in respect of any services of a technical, managerial, administrative or consultative nature, but does not include any such amount payable in respect of— (2) For the purposes of this Schedule— (a) fees shall be deemed to be from a source within Zimbabwe if the payer is a person who or partnership which is ordinarily resident in Zimbabwe;” [22] The appellant holds nostro accounts with certain foreign banks. The appellant told the court that transactions in these accounts were conducted in the following manner. A customer would instruct the appellant to make payment to a third party. The appellant generated a telegraphic transfer through SWIFT (a safe international payment processing platform used by all banks to transfer money from one bank to another), to transfer the funds from its relevant nostro account to the third party’s designated bank account. In line with international banking practice, SWIFT automatically charged a fixed rate against the nostro account based on the number of clearing transactions that operated through the system. SWIFT charged the related account directly from that transaction by debiting the account without raising an invoice. The appellant’s witness Mr Young equated the nostro bank charges with fees paid by customers of local banks for services rendered and charges levied for maintaining an account with the local bank. The appellant was charged fees for particular transactions that went through the nostro accounts. He conceded that the debits to the nostro accounts represented money earned by the foreign bank. [23] The respondent took the view that the nostro charges, whether stated as service charges or transaction related charges, are subject to non-resident tax on fees as they fall under the 11