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The Economic and Financial Crimes Court has convicted GMX Systems Zambia Limited and two individuals in a customs fraud case involving the importation of drones, ordering the company to pay more than K2.1 million in outstanding taxes in addition to fines.
The Chongwe-based court found GMX Systems Zambia Limited, Aminadav Bardavid and Aaron Ngoma guilty of offences under the Customs and Excise Act after determining that the company imported drones using falsified invoices and failed to submit the required customs entries to the Zambia Revenue Authority (ZRA).
This is according to a statement issued by the ZRA Corporate Communications Manager, Oliver Nzala, who added that the prosecution proved that the accused used false invoices to understate the value of the imported drones, resulting in lower tax assessments.
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‘The court also found that Bardavid and Ngoma falsely informed ZRA that the drones were intended for GMX Systems Limited in Israel and had been shipped to Zambia in error, when the actual importer was GMX Systems Zambia Limited,” Nzala said.
He said the court fined GMX Systems Zambia Limited K30,000 on each count and separately ordered the company to pay more than K2.1 million in outstanding taxes. A warrant of distress will be issued if the fines are not paid.
Bardavid was fined K20,000 on each of 19 counts, bringing the total penalty to K380,000, with a default sentence of 12 months’ simple imprisonment.
Ngoma was fined K10,000 on each of four counts, amounting to K40,000, with a six-month simple imprisonment sentence in default of payment.
“Six other accused persons—Jacqueline Ngoma Okhumode, Teddy Nondo, Gary Mushimbwa, Alinjanvwa Bwalya, Ackron Mulela and Getrude Manda—were acquitted on all charges,” Nzala said.
He said the authority had intensified surveillance of customs declarations to curb tax fraud and ensure importers complied with the law.
“The Authority has strengthened its monitoring of customs declarations to detect tax fraud and reminds importers to submit the required customs entries, provide accurate invoices and declarations, and pay the taxes due,” Nzala said.
He said the conviction sent a strong message that attempts to evade customs duties through false declarations or misrepresentation would attract stiff penalties, adding that ZRA remained committed to safeguarding government revenue through strict enforcement of customs laws.
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