• ZRA instituted criminal proceedings against Liangyung Company Limited and Justin Chikwanda.
• They appeared before the Economic and Financial Crimes Courts on 9th April 2024 for commencement of trial in Kitwe.
• This action resulted in loss of Government revenue amounting to over K3.2 million which was fraudulently recovered by the duo.

Zambia Revenue Authority (ZRA), has recovered over K3.2 million from tax payers on the Copperbelt, who evaded paying tax.

ZRA Corporate Communications Manager, Oliver Nzala revealed that the Economic and Financial Crimes Court convicted Liangyung Company Limited and an individual Justin Chikwanda, both from the Copperbelt, for tax evasion contrary to the Value Added Tax Act.

Mr. Nzala explained that the Authority instituted criminal proceedings against the tax payers, who appeared before the Court in Kitwe on 9th April 2024 for commencement of trial..

“Facts of the case are that on dates unknown but between the 1st June 2022 and 31st December 2022 in Kitwe jointly and whilst acting together with others unknown, in purported compliance with the law provided information to Zambia Revenue Authority purporting to show that Liangyung Company Limited was supplied with taxable supplies namely high-grade copper ore and copper ore on various tax invoice numbers by Wise Focus Mining Limited for the period June 2022 to December 2022 when in fact not.”

“This action by the accused persons resulted in loss of Government revenue amounting to over K3.2 million which was fraudulently recovered by the duo. When the case came up for commencement of trial, the accused persons informed the court that they wanted to invoke the provisions of the Plea of Negotiations Act Number 20 of 2010,” Mr. Nzala explained.

Mr. Nzala added that the State did not object to the application provided that the accused persons paid in full the K3.2 million evaded Value Added Tax (VAT) and refund the cost incurred by the State in prosecuting the case sum of K250, 000.

“The accused persons immediately paid the said amounts to the Zambia Revenue Authority. Upon their own admission of guilty, the court convicted and sentenced the accused to pay fines of K12, 000 in respect of the company and K5, 000 in respect of the individual Justin Chikwanda and in default warrants of distress to be issued.”

“The Zambia Revenue Authority has intensified its monitoring mechanisms to detect tax fraud. Cases of Value Added Tax fraud and tax evasion have been on the rise on the Copperbelt and the country at large. All taxpayers found wanting will be prosecuted in accordance with the law,” he added.

Making false tax statements and returns is contrary to sections 43 of the VAT Act, Chapter 331 of the Laws of Zambia.