Accountants raise the alarm over Zambia Revenue Authority Amendment Bill, cite risks to taxpayer data, market fairness

The Zambia Institute of Chartered Accountants (ZICA) has warned that the proposed Zambia Revenue Authority (ZRA) Amendment Bill of 2025 carries significant risks that could undermine taxpayer confidentiality, market fairness, and the core mandate of the tax authority.

Speaking at ZICA’s fourth-quarter 2025 media briefing in Lusaka on Tuesday, ZICA President, Yande Siame Mwenye, said the Bill proposes changes that go beyond ZRA’s established role and could expose the institution to legal, governance, and operational challenges.

“The changes in the Bill are materially different from ZRA’s core statutory mandate, which is to maximise tax compliance and increase domestic revenue yield by instituting a fair, efficient, and effective tax regime,” Mwenye said.

She explained that the Bill introduces two major shifts: granting the ZRA Board authority to establish legal entities for innovation, large projects, or public-private partnerships (PPPs), and expanding information exchange provisions to include such entities.

“As ZICA, we believe these changes are materially different from ZRA’s core statutory mandate,” Mwenye said, noting that ZRA’s primary responsibilities include tax collection, enforcement, facilitation of international trade, advisory services, and issuance of tax clearance certificates.

ZICA cautioned that allowing ZRA to operate or direct legal entities could lead to “mission creep and distraction,” diverting attention and resources from compliance enforcement, audits, and closing the tax gap.

“Operating or directing legal entities, especially where they interface with markets or PPPs, risks compromising enforcement focus and diluting accountability for core performance indicators,” Mwenye said.

The institute also highlighted potential legal inconsistencies, warning that commercial activities by ZRA-linked entities could conflict with public finance management and procurement laws.

“The draft Bill does not reconcile these frameworks,” Mwenye said, adding that this omission could create governance confusion and expose ZRA to legal disputes.

On data protection, ZICA expressed strong concern over provisions allowing taxpayer information to be shared with legal entities.

“Allowing information to flow to legal entities increases the risk of misuse or inadvertent disclosure of taxpayer data, potentially contravening secrecy provisions under the ZRA Act. Without explicit statutory safeguards, the risk to confidentiality is unacceptable,” Mwenye said, warning that any erosion of trust could weaken voluntary compliance.

ZICA further cautioned that ZRA’s statutory powers and access to sensitive information could give unfair advantages to any legal entities it establishes or affiliates with.

“ZRA’s information asymmetry and regulatory influence would confer an undue advantage, distorting markets and undermining private investment,” Mwenye said, stressing that international best practice requires strict separation between regulators and market participants.

The institute also flagged gaps in governance and oversight, noting that the Bill does not specify how such entities would be audited, regulated, or held accountable.

“There is no mechanism for independent oversight, nor are there specific penalties for misuse of confidential information by these entities,” Mwenye said.

In addition, ZICA questioned the economic justification for the proposals, noting that the Bill lacks clear cost-benefit analysis or measurable performance indicators.

“Any potential efficiencies could be achieved through conventional procurement or intergovernmental cooperation, without requiring ZRA to assume market-facing roles,” Mwenye said.

ZICA urged lawmakers to address drafting gaps and ambiguities, including clearer definitions of legal entities, strict limits on commercial activities, robust information firewalls, and stronger oversight provisions before the Bill is enacted in the public interest.

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