More than K10 million has been recovered from four companies in Kitwe district, Copperbelt province by Zambia Revenue Authority (ZRA).
Government had earlier lost the funds through tax evasion, Zambia Revenue Authority Corporate Communications Manager, Oliver Nzala said.
In a statement issued in Lusaka by Nzala on Tuesday, the Authority said it had instituted criminal proceedings against several companies, namely Eagles Eye Transformation Limited and its Director Lifen Tang.
Others are Taurus Mineral Resources Limited and its Director Lifen Tang, Mineral Junxion and Transport Limited and its Director Xing Tang and Focus on Equipment Limited and its Director Xing Tang.
Nzala said the companies and its directors were prosecuted on charges of false statement, returns and evasion of taxation before the Economic and Financial Crimes Court sitting on circuit in Kitwe.
He said the four companies on dates unknown but between January 1, 2020 and August 31, 2022 in Kitwe, provided tax invoices to ZRA purporting to show that they had purchased taxable goods.
Nzala said the goods were purported to have been purchased from other companies based on the Copperbelt which was false, thereby defrauding government of revenue.
“Further, that in the same period and jurisdiction, the said companies and their Directors fraudulently recovered Value Added Tax and interest amount of K10.6 million by providing false returns that taxable supplies were made to Eagles Eye Transformation Limited, Taurus Mineral Resources Limited, Mineral Junxion and Transport (Z) Limited and Focus on Equipment Limited by several Copperbelt based companies when in fact not,” he said.
Nzala said the accused companies and their directors entered into plea agreements with the State on conditions that they pay back the evaded taxes and interest.
He said the companies would also pay the cost of prosecuting the cases incurred by the State in the sum of K1.2 million and that the company’s directors pleaded guilty to all the charges levelled against the companies.
Nzala said upon satisfaction of all the terms and conditions the State would withdraw the charges against the directors, respectively.
“When the matters came up before the Economic and Financial Crimes Court the State informed the Court that all the terms and conditions of the Plea Agreements had been satisfied by the accused persons,” he said.
Nzala said payment of the evaded taxes and interest in the sum of K10.6 million and refund of the cost of prosecution in the sum of K1.2 million bringing the total sum be paid to the State to K11.8 million.
He said the State proceeded to withdraw the charges against the directors.
Nzala explained that the directors of Lifen Tang aka Linda and Xing Tang pleaded guilty on behalf of the companies on all the charges of false returns and statements and evasion of taxation levelled against them.
“In sentencing the convicted companies, the Court indicated that it was going to exercise maximum leniency because the convicted companies had paid back to the State all the taxes that were invaded and also refunded to the State the cost incurred in prosecuting the cases,” he said.
Nzala said the Court sentenced the convicted companies to pay fines in the sum of K35,200 which fines have since been paid.
He warned all taxpayers that any taxpayer found wanting will now be prosecuted to the fullest extent permissible by law.
“The citizens are encouraged to pay their fair share of taxes as Zambia will only develop if we all paid our taxes,” Nzala said.
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