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ZRA Launches Investigation into Tubombeshe Mining Limited Over Alleged Gemstone Operations and Tax Evasion

The Zambia Revenue Authority (ZRA) conducted a search operation at the premises of Tubombeshe Mining Limited in Lufwanyama. 

This operation, prompted by compelling allegations of non-disclosed gemstone operations and potential tax evasion, aimed to gather evidence related to the suspected illegal activities.

Initial findings from the search indicate significant inconsistencies in the reported gemstone production and actual operations by Tubombeshe Mining Limited. 

There is a suspicion of active gemstone extraction not accurately disclosed to the ZRA, potentially contradicting the company’s filings of nominal or zero returns.

The evidence collected during the operation includes financial records, production logs, auction documentation, undercover operation reports, correspondence, and witness statements. 

These findings suggest possible non-compliance with tax regulations and unauthorized gemstone auctions.

The ZRA is currently engaged in further investigation and analysis of the evidence obtained during the search. 

The extent of non-compliance will be meticulously assessed, and appropriate legal actions will be considered in line with tax regulations and business practices.

In a related search operation at Good Time Steel, a company affiliated with Tubombeshe Mining Limited, the ZRA discovered USD$250,000 and K2.5 million in cash. 

This seized amount will be handed over to the Drug Enforcement Commission (DEC).

To enhance efficiency and compliance in the mineral value chain, the ZRA, in collaboration with the Ministry of Mines and Minerals Development, has developed a Gemstone Production Reporting and Export Permit Module. 

This online reporting system aims to improve transparency and accountability in the Gemstone industry.

The Gemstone Production Reporting and Export Permit Module, soon to be rolled out, will complement existing Base Metals reporting modules under the Mineral Output Statistical Evaluation System (MOSES). 

MOSES, part of the Mineral Value Chain Monitoring Project (MVCMP), facilitates online reporting of mineral production and export permit processing, aiding in the detection of illicit trade practices.

The development of this new module is expected to enhance tax compliance among operators in the Gemstone industry, increase tax revenues for the national treasury, and address issues such as mis-invoicing and under-declaration of exports in the Gemstone sector. 

The ZRA continues its commitment to fostering transparency, accountability, and fair business practices in Zambia’s mining industry.

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