UCZ Ordered to Pay Over K10.7 Million for Tax Evasion
United Chemicals Zambia Limited has been ordered by the Economic and Financial Crimes Court to pay the Zambia Revenue Authority (ZRA) over K10.7 million for tax evasion.
According to Oliver Nzala, Manager of ZRA Corporate Communications, between 1 July 2022 and 31 March 2023, the company, in collusion with others, allegedly submitted false declarations to ZRA, falsely claiming that containers of cooking oil were exported to Choice Services (Sarl) in the Democratic Republic of Congo using different vehicles. This conduct violated provisions of the Customs and Excise Act.
Mr Nzala added that the company also submitted falsified returns and statements, including zero-rated sales totalling over K19.1 million, which led to a loss of government revenue amounting to more than K10.7 million in Value Added Tax.
On 19 January 2026, before Honourable Tamara Kakusa at the Economic and Financial Crimes Court in Ndola, the accused pleaded guilty to eight counts of furnishing false returns and statements. The court fined the company K40,000, payable within 14 days, with a warrant of distress to be issued in default.
In addition, the court ordered United Chemicals to pay the evaded VAT of K10.7 million and K400,000 in prosecution costs, which have since been settled.
Mr Nzala urged all taxpayers to comply with tax laws to avoid penalties, including prosecution and imprisonment.
He further appealed to the public to report tax malpractices, emphasising that ZRA remains vigilant in curbing economic crimes that deny the country vital revenue and undermine fair competition.
