Taxpayer Convicted for K9.3M Tax Evasion as ZRA Cracks Down on Fraud
The Zambia Revenue Authority (ZRA) has successfully convicted Alaska Solutions Limited and its Director, Zhang Weisheng, for tax evasion totaling K9.3 million.
The Economic and Financial Crimes Court, sitting on circuit from Lusaka, delivered the judgment on December 7th, 2023, sentencing Zhang Weisheng to a fine of K7,308,000, with a default option of 9 months’ simple imprisonment.
The company, Alaska Solutions Limited, was also fined K7,308,000, with a warrant of distress to be issued.
The charges against Alaska Solutions Limited and Zhang Weisheng included false statements and returns, as well as evasion of taxation, contravening sections 43 and 44 of the Value Added Tax Act Cap 331 of the laws of Zambia. The court found them guilty on all 36 counts of tax evasion.
The case revealed that between September 1st, 2021, and September 30, 2022, in Kitwe, the accused furnished false information to the Zambia Revenue Authority.
The information included tax invoice numbers purporting that Alaska Solutions Limited had received taxable supplies from named Copperbelt companies, which turned out to be false.
During the same period, the accused company and its director fraudulently recovered Value Added Tax by submitting false returns, indicating that taxable supplies were made to Alaska Solutions Limited by specified Copperbelt companies when, in fact, they were not.
The alleged fraudulent activities resulted in a loss of K9.3 million in revenue for the Government of the Republic of Zambia.
This marks the tenth company successfully prosecuted by the Zambia Revenue Authority for tax evasion this year. Previous convictions include Eagles Eye Transformation Limited, Taurus Mineral Resources Limited, Mineral Junxion and Transport Zambia Limited, Focus on Equipment Limited, Santorin Investments Limited, Pingani Auto Services Limited, Changesheng Mining Equipment Company Limited, and Jungsheng Industry Company Limited.
Several of the convicted companies have paid the evaded taxes and interest to the Zambia Revenue Authority. The authority expressed concern over the rising cases of VAT fraud and issued a stern warning to criminal syndicates involved in fraudulent tax schemes.
Measures have been implemented to curb tax evasion, with tax investigators actively pursuing various cases to bring offenders to justice.
The Zambia Revenue Authority emphasized its commitment to prosecuting individuals and entities found guilty of tax crimes without fear or favor.
