Company’s ploy to evade K200,000 tax for shoes, slippers falls flat

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THE Zambia Revenue Authority (ZRA) has continued to benefit from their wide lensed eyes to make sure nothing passes with contributing the right and correct tax.

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In a recent development, Dronewave Investments Limited tried to evade customs duties by falsely declaring lower-duty items but ZRA’s vigilant sight was up to task.

The Authority intercepted a fraudulent shipment declared to contain shoe soles, glue, and shoe heels only but upon physical inspection, authorities discovered that the truck was purely carrying undeclared shoes and slippers.

“1, 295 boxes of slippers and 348 boxes of shoes were not declared, respectively. In this case, this translates to 46, 620 pairs of slippers and 8,280 pairs of shoes being smuggled into the country,” shared ZRA corporate communications manager Oliver Nzala in statement.

“The attempt by Dronewave Investments Limited to evade customs duties by falsely declaring lower-duty items resulted in a revenue loss of K215,000 to the Government of the Republic of Zambia.”

The authority warned importers and agents involved in similar schemes that they will face severe penalties, including hefty fines and potential prosecution.

“Agents found to be involved in such illicit practices will also have their licenses revoked,” added Nzala.

He said by taking decisive action against these fraudulent activities, the Authority aimed at protecting legitimate businesses and ensure fair competition.

Nzala said ZRA officers are on high alert to curb smuggling and illicit trade by unearthing of various tax fraud schemes to enhance tax compliance.

Pictures for illustration

By Moses Makwaya

Kalemba November 26, 2024

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