SPAX MINING CONVICTED OF TAX EVASION
The Zambia Revenue Authority (ZRA) in its desire to crack down on tax evasion in the country, instituted criminal proceedings against Spax Mining Limited on the Copperbelt on charges of furnishing false statements and returns contrary to sections 43 of the Value Added Tax Act Chapter 331 of the laws of Zambia.
Facts of the case are that on dates unknown but between the 1st January 2022 and 31st August 2023, jointly and whilst acting together with others unknown, in purported compliance with the law, did provide information to the Zambia Revenue Authority purporting to show that Spax Mining Limited was supplied with taxable supplies namely ores and copper ores on various tax invoice numbers by Wise Focus Mining Limited and Zamgem International Limited for the period June 2022 to August, 2023 which was false in material particular.
This fraudulent action by the taxpayer, resulted in loss of Government revenue in Value Added Tax amounting to K4,490,523.68.
When the case came up for pre-trial conference on 19th November 2024, the accused person informed the court that they wanted to invoke the provisions of the Plea Negotiations Act Number 20 of 2010.
The State did not object to the application provided the accused persons paid in full the evaded Value Added Tax amount of K4,490,523.68 and refund the cost incurred by the State in prosecuting the case in the sum of K100,000.00.
The accused person paid the said amounts to the Zambia Revenue Authority forthwith. Upon the convict’s own admission of guilty, the Economic and Financial Crimes Court convicted and sentenced the convict to pay a fine of K13,500.00 forthwith in default to serve Six (6) months simple imprisonment.
Cases of Value Added Tax fraud and tax evasion are on the rise on the Copperbelt and the country at large, therefore ZRA has intensified its monitoring mechanisms to detect tax fraud.
All taxpayers found wanting will be prosecuted in accordance with the law.
It appears only non UNPD affiliates are in abrogation of the law.
First, they started harassing Spax by encroaching on his land. Now, they bring up these charges, which will most likely be thrown out of courts.
Meanwhile, the FIC report has told the nation fraudulent transactions have now dwarfed those under PF. Yet no one has been arrested because the criminals are not from the opposition.
This is not the Zambia we voted for in 2021.
Vote wisely in 2026.