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ZRA Exposes K82 Million Tax Evasion Scheme

The Zambia Revenue Authority (ZRA) has uncovered a complex tax evasion scheme involving over K82 million, allegedly orchestrated by Reddy Logistics and Mash Rock Mining Limited, along with their associates. 

The investigation, conducted on the Copperbelt, has shed light on a sophisticated operation aimed at evading taxes owed to the Zambian government.

According to Oliver Nzala, ZRA’s Corporate Communications Manager, Mash Rock Mining Limited, a company engaged in mining activities within Zambia, has been under scrutiny for its practices regarding the handling of locally mined copper. 

It has come to light that the company has been storing domestically sourced copper in Reddy Logistics’ bonded warehouse, falsely claiming it as imported from the Democratic Republic of Congo (DRC) via the Lonshi Border point.

Further investigation revealed that Mash Rock Mining Limited has been processing direct bonding Customs declarations, allowing the copper to be exported from the bonded warehouse without fulfilling its tax obligations, including Mineral Royalty payments. The ZRA estimates the value of the evaded taxes to be a staggering K82,676,971.81.

The ZRA’s Customs ASYCUDA system unveiled that Mash Rock Mining Limited has never imported any copper ore from the DRC via the Lonshi border, as stated in their Customs documentation. 

Instead, they have been procuring the material locally, misclassifying it as imported to evade taxes. This fraudulent scheme has reportedly been ongoing for at least three years.

In response to this revelation, the ZRA emphasizes the importance of tax compliance for the nation’s economic development. They urge all taxpayers to accurately declare and pay their taxes, highlighting the crucial role revenue plays in funding essential developmental projects.

The ZRA warns that they will not hesitate to prosecute those found guilty of tax evasion, imposing heavy penalties to deter such unlawful activities in the future. 

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