By Chinoyi Chipulu
The Zambia Revenue Authority (ZRA) has instituted criminal proceedings against Spax Mining Limited on the Copperbelt for furnishing false statements and returns.
This fraudulent action resulted in loss of government revenue in Value Added Tax amounting to K4,490,523.68.
According to a statement yesterday, the offence is contrary to sections 43 of the Value Added Tax Act Chapter 331 of the Laws of Zambia.
“On unknown dates but between January 1st 2022 and August 31, 2023 Spax Mining jointly and whilst acting together with others unknown, in purported compliance with the law, provided information to the ZRA purporting to show that the company 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,” read the statement in part.
When the case came up for pre-trial conference on November 19, 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 statement read.
The accused person paid the said amounts to the ZRA 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 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,” read the statement.
