Trustco, led by Quinton van Rooyen, loses $11 million tax case

Key Points

• Trustco lost its court bid against NamRA, clearing the way for tax recovery efforts through commercial banks.
• The High Court upheld NamRA’s authority and dismissed Trustco’s constitutional challenge to Namibia’s Income Tax and VAT laws.
• Despite legal and financial troubles, Trustco is pursuing a Nasdaq listing to expand internationally and counter mounting domestic pressures.

Trustco Group Holdings, the investment firm led by Namibian businessman Quinton van Rooyen, has been dealt a significant setback in its long-running tax dispute with the Namibia Revenue Agency (NamRA). The High Court dismissed Trustco’s application, clearing the way for the state to continue efforts to recover unpaid taxes directly through commercial banks.

In a ruling delivered last week, the court sided firmly with NamRA, confirming the agency’s power to appoint banks as agents to collect outstanding debts. It also threw out Trustco’s constitutional challenge against parts of the Income Tax and VAT Acts. Adding to the company’s troubles, the court ordered Trustco to cover the state’s legal costs.

From VAT refund to legal and financial woes

Trustco’s tax troubles began with a NAD136 million ($7.44 million) VAT refund claim, which quickly snowballed when NamRA issued revised assessments. The agency demanded NAD201.7 million ($11.03 million) in taxes, alongside NAD103.8 million ($5.68 million) in interest on income tax, VAT, and withholding tax. In October 2022, NamRA froze 42 Trustco-linked accounts, demanding partial payment within weeks. Trustco responded with accusations of irrational conduct and claims that the payment deferral agreement had been breached.

The dispute was primarily centered around Trustco’s constitutional challenge to Sections 91 and 36 of the Income Tax and VAT Acts, arguing that these laws gave NamRA excessive power. However, the High Court rejected the challenge, reaffirming the tax agency’s legal authority.

Trustco maintains it paid NAD63.4 million ($3.47 million) between March and October 2020 and, after offsets, owed just NAD7.8 million ($426,559)—of which NAD2.7 million ($147,655) was paid in October 2022. Floors Abrahams, the company’s executive financial director, criticized NamRA’s sudden demands: “When NamRA owed Trustco, it didn’t pay. But now, it wants everything back immediately.”

This ruling adds more pressure on CEO Quinton van Rooyen’s leadership, which is already facing scrutiny from the Bank of Namibia regarding Trustco Bank. In early 2025, the company encountered regulatory challenges in Namibia and South Africa over its plan to delist from the JSE. As it looks abroad, Trustco is now focused on securing a Nasdaq listing. By March 2025, the company disclosed that its debt to van Rooyen’s investment arm, Next Capital, had surged to $280 million following a new loan agreement.

The road ahead for Trustco

Based in Windhoek, Trustco operates across banking, insurance, real estate, and wealth management. The van Rooyen family retains a 69.8 percent stake. Despite the setback and rising domestic headwinds, the company is pushing forward with its U.S. market expansion and Nasdaq ambitions, betting on global investor interest to offset local regulatory friction.