Zambia Revenue Authority recovers K3.2 million from Chinese firm, Zambian national

The Zambia Revenue Authority (ZRA) has reportedly recovered taxes worth K3.2 million from a Chinese-owned business on the Copperbelt and a Zambian national, Justin Chikwanda.

Without this, the government would have lost K3.2 million through tax evasion, ZRA Head Corporate Affairs Manager, Oliver Nzala, said.

Nzala in a statement issued in Lusaka on Thursday said the Authority had instituted criminal proceedings against Liangyung Company Limited and Chikwanda on suspicion of tax evasion.

“The accused on dates unknown but between June 1, 2022 and December 31, 2022 in Kitwe in purported compliance with the law provided information to ZRA purporting to show that Liangyung Company Limited was supplied with taxable supplies,” he said.

Nzala identified the supplies as high-grade copper ore and copper ore on various tax invoice numbers by Wise Focus Mining Limited for the period June 2022 to December 2022 when in fact not.

He said this action by the accused persons resulted in loss of government revenue amounting to over K3.2 million.

“When the two appeared before the Economic and Financial Crimes Courts for commencement of trial in Kitwe, they opted to negotiate and paid the K3.2 million and further paid the legal fees incurred by ZRA to the tune of K250, 000 each,” Nzala stated.

He said upon their own admission of guilt, the court convicted and sentenced them to pay fines of K12,000 in respect of the company and K5,000 in respect of the individual Justin Chikwanda and in default warrants of distress to be issued.

Nzala added that the Authority had intensified its monitoring mechanisms to detect tax fraud.

“Cases of value added tax fraud and tax evasion have been on the rise on the Copperbelt and the country at large,” he said.

Nzala warned that all taxpayers found wanting would be prosecuted in accordance with the law.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.