Q FM Africa's Modern Radio
ZRA Corporate Communications Manager Topsy Sikalinda (Picture by Albert Mpezeni)
The Zambia Revenue (ZRA) has uncovered a mining tax scam worth K76.5 billion.
And ZRA has announced that it has started the process of comprehensively auditing mining companies in all applicable tax types.
Last year, the amnesty on interest and penalties was announced by the authority to allow tax payers to clean up their tax accounts.
ZRA Corporate Communications Manager Topsy Sikalinda says a post amnesty review shows that only small and medium companies stepped forward and the Authority raised about K4.4 billion from the programme.
Mr. Sikalinda says unfortunately, most large companies did not participate despite numerous reminders and extensions.
He says ZRA has therefore started detailed audits on all mining companies for compliance in all applicable tax types in order to ensure all taxes due are collected.
In a statement released to Q-news Mr. Sikalinda says the planned audits will initially cover the statutory period of 6 years.
He states that if the findings will review a pattern of consistent, systematic, premeditated cheating which is tax evasion; ZRA will criminalize the act and cover longer periods to achieve the intended objective.
Mr Sikalinda says ZRA is announced the preliminary assessment of K76.5 billion issued to a prominent mining company for misclassifying consumables and spare parts at importation for the last five years.
He explains that the said items were declared as mining machinery which attract customs duty at zero percent when in fact not.
He says the Authority is currently ascertaining the involvement of the clearing agent, who, if found to have been actively involved, will face appropriate sanctions that may include complete revocation of the trading licence.