SPAX Mining Limited, a Copperbelt-based mining company, has been convicted of tax evasion and fined K13,500 by the Economic and Financial Crimes Court.
The mining company was found guilty of fabricating false statements and returns to the Zambia Revenue Authority (ZRA), resulting in a loss of over K4 million in Value Added Tax (VAT) revenue.
In a statement issued by ZRA corporate communications manager Oliver Nzala, It was disclosed that the conviction follows an investigation by the authority into the company’s fraudulent activities between January 2022 and August 2023.
The mining company is said to have falsely claimed VAT refunds on supplies of ores and copper ores from Wise Focus Mining Limited and Zamgem International Limited.
While the matter came up in court for pre-trial conference on November 19, SPAX Mining, in a bid to avoid further legal proceedings, opted for a plea bargain provided under 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,” Nzala shared.
“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.”
Meanwhile, Nzala disclosed that 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.
“ZRA is handling 323 cases of suspected VAT Refund frauds discovered between 2022 to 2024. 142 have been assessed for taxes with 12 convictions made so far by the Economic and Financial Crimes Court; revenue saved in all the 142 cases is K5,448,643,660.80,” stated Nzala.
The authority has warned that all taxpayers found wanting will be prosecuted.
Kalemba November 25, 2024
