United Chemicals of Zambia ordered to cough out K10.7 million for tax evasion

The Zambia Revenue Authority (ZRA) says the Economic and Financial Crimes Court has ordered United Chemicals Zambia (UCZ) Limited to pay more than K10.7 million in evaded taxes after the company pleaded guilty to multiple counts of furnishing false returns.

ZRA Manager for Corporate Communications, Oliver Nzala, said the case involved tax evasion activities committed between July 1, 2022 and March 31, 2023 in Ndola, Copperbelt Province.

In a statement issued on Wednesday, Nzala said UCZ, in collusion with unknown persons, submitted false declarations to ZRA, misrepresenting that several containers of cooking oil had been exported from Zambia to Choice Services in the Democratic Republic of Congo using various motor vehicles.

He said evidence presented in court showed that the company filed falsified returns that included zero-rated sales amounting to over K19.1 million, resulting in a government revenue loss of more than K10.7 million in Value Added Tax.

When the matter came up for plea on January 19, 2026, before Judge Tamara Kakusa, sitting as the Economic and Financial Crimes Court in Ndola, the accused company pleaded guilty to eight counts of furnishing false returns and statements.

The Court convicted the company and imposed a fine of K40,000, payable within 14 days, with a warrant of distress to be issued in case of default.

Nzala said the Court additionally ordered UCZ to pay the evaded K10.7 million VAT and compensate the State K400,000 for prosecution expenses—an amount he said has since been paid.

“ZRA encourages all taxpayers to pay their fair share of taxes and remain compliant with tax laws to avoid punitive enforcement measures including prosecution and imprisonment,” he said.

Nzala further urged the public to report tax malpractices to help safeguard government revenue and maintain fair market competition. He emphasized that ZRA remained vigilant in curbing economic crimes designed to deprive the country of much-needed resources.

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