ZRA TO RECOVER K22M IN TAX EVASION CASE

The Zambia Revenue Authority (ZRA) will recover over K22 million from two Copperbelt based Companies who evaded paying taxes.  

The Economic and Financial Crimes Court has convicted Santorin Investments Limited Company and Junsheng Company Limited companies, both from the Copperbelt, for tax evasion contrary to the Value Added Tax Act.

Santorin Investments Limited Company and its Director Victor Mwansa aged 33, and Junsheng Company Limited appeared before the Economic and Financial Crimes Court in Kitwe for judgment on 22nd February 2023.

The accused persons representing Santorin Investments Limited Company were facing 112 counts while those representing Junsheng Company Limited were facing 24 counts of false returns and statements and evasion of taxation, respectively.

Facts of the case are that Santorini Investments Limited and Victor Mwansa, on dates unknown but between the 1st day of September 2018 and the 30th day of September 2022 in Kitwe, jointly and whilst acting together, in purported compliance with the law did provide information namely tax invoice numbers to Zambia Revenue Authority, purporting to show that Santorini Investments Limited had been supplied with taxable supplies by various Copperbelt based companies which was false in material particular.

The Court sitting in Kitwe on circuit from Lusaka convicted the company and Director Victor Mwansa on all the 112 counts they stood charged and accordingly convicted them to a fine of K1,288,000.00. If the accused persons do not pay the fine by or before 30th March 2023, the convicted Director will be sent to prison for a term of 9 months simple imprisonment while a warrant of distress will be issued to the convicted company.

And facts for Junsheng Company Limited are that on dates unknown but between the 1st day of January 2016 and the 1st day of November 2022 in Kitwe, jointly and whilst acting together, in purported compliance with the law did provide information namely tax invoice numbers to Zambia Revenue Authority, purporting to show that Junsheng Company Limited had been supplied with taxable supplies by various Copperbelt based companies which was false in material particular.

The Court convicted the company on all the 24 counts it stood charged and accordingly convicted the company to a fine of K6,591,014.50. If the convicted company does not pay the fine on or before 25th April 2023 a warrant of distress will be issued to the convicted company.