Role of the Investigations Division

It is the role and mandate of Investigations Division to deal with deliberate evasion activities related to Zambia Revenue Authority statutes whether they result from the legitimate economy or illegal economy. This mandate is fulfilled through the provision of the Criminal Investigations Program and the Leads and Assistance Program

Criminal Investigations Program

To conduct investigations into suspected cases of non compliance with the various acts being administered and to prosecute each case where sufficient evidence is obtained to support a conviction for wilful non compliance with these Acts and to take necessary civil actions where warranted. The major Acts being administered include the Customs and Excise Act, The Income Tax Act and the Value Added Tax Act.

Leads and Assistance Program

To coordinate third party leads received by the Authority and to provide assistance, upon request, to other programs, domestic and foreign tax and customs authorities and other enforcement agencies.

Reporting of tax evasion and other fraudulent activities
Avoidance Vs Evasion

Avoidance of taxes is not a criminal offence. Some attempts to reduce, avoid, minimize, or alleviate taxes by legitimate means may be permissible. The distinction between avoidance and evasion is fine, yet definite. One who avoids tax does not conceal or misrepresent. He shapes events, to reduce or eliminate tax liability and upon the happening of events, makes a complete disclosure. Evasion on the other hand, involves deceit, subterfuge, camouflage, concealment, some attempt to colour or obscure event, or make things seem other than they are. For example, creation of a bonafide partnership to reduce the tax liability of a business by dividing the income among several individual partners is tax avoidance.
However, the facts of a particular case may show that an alleged partnership was not, in fact, established and that one or more of the alleged partners secretly returned his/her share of the profits to the real owner of the business, who, in turn, did not report this income. This would be an instance of attempted evasion.

Public’s Role

The task of fighting tax frauds is not the responsibility of Zambia Revenue Authority alone but of the public as well. If tax frauds are not checked they can affect the collections made by ZRA and subsequently national development.

Contacts

If you know of anyone committing tax frauds or you have heard of a tax fraud being committed somewhere else, don’t hesitate to contact the Investigations Division on 10th floor, Western Wing of the revenue house or phone 996 (toll free) or phone number 01-237330 or email : taxfraud@zra.org.zm