ZRA raid the Post newspapers

The Zambia Revenue Authority (ZRA) officers accompanied by Police officers this morning attempted to execute a warrant of distress on the Post Newspapers demanding an immediate payment of over K6 million in late payment penalties and interest.

The warrant of distress was accompanied by a demand notice of K9.9 million which the Authority claimed comprised of K1.2 million VAT and K8.7 million Pay As You Earn tax.

But in a statement made available to Qfm News, the Post Newspapers has disclosed that the over K6 million late payment penalties and interest has never been brought to its attention before and that the demand to which the ZRA claims it relates was settled a long time ago.

Post Newspaper General Manager for Finance Rowena Zulu says the company does not also owe ZRA K1.2 million in the form of VAT.

Ms. Zulu says the newspaper company’s VAT account is up to date and that the ZRA figures are wrong.

On the K8.7 million Pay As You Earn the Post Newspapers is said to be owing, Ms Zulu says the company has already brought this matter to the Authority’s attention that as a result of the K26 Million earlier demand which it has already paid, this tax fell behind the same wage bill in terms of payment.

Ms. Zulu has contended that this is because Pay As You Earn is a withholding tax which should be cleared on the paid basis.

She states that in view of these facts, the newspaper finds the warrant of distress by the ZRA to be an attempt to cook up figures and make it look as if it owes the authority a lot of money despite the fact that the Post has paid the Authority over K40 million in taxes in the last 11 months.

Ms. Zulu further notes that the fact that the ZRA invited the media to cover its operation is suspicious enough that the warrant of distress was allegedly only meant to fix the newspaper.

But speaking shortly after the operation, ZRA Corporate Communication manager Mumbuna Kufekisa told journalists that in view of the issues the Post has raised, the Authority has given it 10 days in which reconcile the demanded figures and what it has on record.

Mr. Kufekisa says ZRA had its own figures different from what the Post has the more reason reconciliation of figures is necessary.

He has also dismissed claims that the warrant of distress on the Post Newspaper was politically motivated as the Newspaper Company is not the only company that is being pursued by the Authority currently.