The Zambia Revenue Authority (ZRA) says it has now prosecuted Five (5) companies on the Copperbelt on Value Added Tax (VAT) fraud charges.
Currently, the Authority is prosecuting Changesheng Mining Equipment Company Limited and its Director Wang Qi aged 33 who appeared before the Kitwe Subordinate Court on 20th September 2022 for plea.
The accused pleaded not guilty to all 24 counts of false returns and statement contrary to section 43 and tax evasion contrary to sections 44 of the Value Added Tax Act, Chapter 331 of the Laws of Zambia.
It is alleged that Changesheng Mining Equipment Company Limited and Wang Qi its Director, on dates unknown but between the 1st day of May 2021 and the 31st day of August 2022 at Kitwe in the Kitwe District of the Copperbelt Province of the Republic of Zambia, jointly and whilst acting together, in purported compliance with the law provided Tax Invoices to Zambia Revenue Authority purporting to show that Changesheng Mining Equipment Company Limited had purchased taxable goods from other companies on the Copperbelt which was false, thereby defrauding the Government of the Republic of Zambia of revenue.
Further, in the same period and jurisdiction Changesheng Mining Equipment Company Limited and Wang Qi its Director evaded paying Value Added Tax and interest by providing false returns that taxable purchases were made from local Copperbelt Companies when infact not.
The actions of Changesheng Mining Equipment Company Limited and Wang Qi its Director caused loss of revenue to the Government of the Republic of Zambia in taxes amount of K2,513,234,47. This is the fifth (5th) company that is being prosecuted on the Copperbelt on VAT fraud charges.
The case has been adjourned to 17th and 19th October 2022 for commencement of trial.
Issued by:
Oliver Nzala
ZRA Acting Corporate Communications Manager