ZRA RECOVERS OVER K10.6M IN TAXES

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ZAMBIA REVENUE AUTHORITY (ZRA)
ZAMBIA REVENUE AUTHORITY ( ZRA )

ZRA RECOVERS OVER K10.6M IN TAXES

The Zambia Revenue Authority (ZRA) has recovered over K10 million which the Government has earlier lost through tax evasion by four companies in Kitwe.

In its quest to crack down on tax evasion on the Copperbelt, ZRA instituted criminal proceedings against several companies namely: Eagles Eye Transformation Limited and its Director Lifen Tang aka Linda, Taurus Mineral Resources Limited and its Director Lifen Tang aka Linda, Mineral Junxion and Transport (Z) Limited and its Director Xing Tang and Focus on Equipment Limited and its Director Xing Tang.

The said companies and Directors were prosecuted on charges of false statement and returns and of evasion of taxation contrary to sections 43 and 44 of the Value Added Tax Act Chapter 331 of the Laws of Zambia before the Economic and Financial Crimes Court sitting on circuit in Kitwe.

Facts of the cases are that Eagles Eye Transformation Limited, Taurus Mineral Resources Limited, Mineral Junxion and Transport (Z) Limited and Focus on Equipment Limited and the Directors Lifen Tang popularly known as Linda and Xing Tang on dates unknown but between 1st January 2020 and 31st August 2022 in Kitwe, provided Tax Invoices to Zambia Revenue Authority purporting to show that Eagles Eye Transformation Limited, Taurus Mineral Resources Limited, Mineral Junxion and Transport (Z) Limited and Focus on Equipment Limited had purchased taxable goods from other companies based on the Copperbelt which was false, thereby defrauding the Government of the Republic of Zambia 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.

The actions of these companies caused loss of revenue to the Government of the Republic of Zambia in taxes and interest amount of K10.6 million.

The accused Companies and Directors entered into Plea Agreements with the State (Zambia Revenue Authority) on conditions that; the accused companies pay back to the State the evaded taxes and interest; that the cost of prosecuting the cases incurred by the State in the sum of K1.2 million be refunded; that the Company Directors plead guilty to all the charges levelled against the companies and 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, that is 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 paid to the State to K11.8 million. The State proceeded to withdraw the charges against the Directors.

The Directors Lifen Tang aka Linda and Xing Tang pleaded guilty on behalf of the companies as company representatives on all the charges of false returns and statements and evasion of taxation levelled against their companies.

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. The Court sentenced the convicted companies to pay fines in the sum of K35,200 which fines have since been paid.

The Zambia Revenue Authority would like to sternly warn 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

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