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Wednesday, August 12, 2020

RB Warns Tax Evaders

Headlines RB Warns Tax Evaders

President Banda speaking to reporters as Vice President George Kunda listens

President Rupiah Banda has said he will not condone tax evasion and corruption in Zambia Revenue Authority’s (ZRA) process of revenue collection because the two vices would retard economic development of the country.

President Banda said corruption in the process of tax collection would compromise the integrity of the revenue authority.

He said tax evasion and corruption were detrimental to the development of the country hence must not be tolerated at all levels.

President Banda said this in a speech read for him by Minister of Commerce, Felix Mutati at the second ZRA Taxpayer Appreciation Day held at Mulungushi International Conference Centre today.

The theme for this year’s appreciation day is “Recognising and Encouraging Voluntary Compliance in Revenue Collection”.

The President further said the Zambia Revenue Authority has been strong, transparent and competent in the administration of taxation in the last 16 years it has been in existence.

He said the authority has grown from collecting only a small percentage of the national budget to over 70 per cent now.

He said this means that Zambia%u2019s annual budget was largely financed from domestically collected resources.

Mr. Banda further lauded the ZRA for launching a medium and small scale taxpayers’ office saying this category of taxpayers could contribute significantly to the development of the country.

He however challenged the revenue authority to continue operating in a transparent manner while minimizing wastage in the process of collecting revenue of the country.

And speaking earlier, ZRA Commissioner General, Chriticles Mwansa said the authority would continue to provide an attractive tax environment that would enable taxpayers to voluntarily meet their tax obligations.

Mr. Mwansa said ZRA would streamline its operations through among other measures, simplifying systems used in revenue collection and in compelling taxpayers to pay tax.

He also officially launched the medium and small scale taxpayers’ office which is at Revenue House in Lusaka and in selected parts of the country.

He said medium and small scale enterprises played a pivotal role in the development of any economy because this category employed more people than the large scale enterprises.

Mr. Mwansa also pledged that ZRA would continue to fight any corrupt practices that might compromise the integrity of the revenue authority.

And the ZRA has signed an agreement with Access Bank to allow taxpayers pay their tax through the bank by electronic payment (e-payment).

The ZRA has rewarded a number of tax payers for their compliance in paying tax.

Among them are BP-Zambia Limited, Kansanshi Mine PLC, Zambian Breweries, Trade Kings Limited, Lamasat International Limited and Toyota Zambia among many others.

The Taxpayers’ Appreciation Day also attracted revenue collection institutions from Rwanda , Kenya , Tanzania , Malawi , Namibia and Swaziland .

QFM

49 COMMENTS

  1. President Rupiah Banda has said he will not condone tax evasion and corruption in Zambia Revenue Authority’s (ZRA) process of revenue collection because the two vices would retard his trips abroad and his holidays for his wife and family.

    President Banda said corruption in the process of tax collection would compromise the integrity of his household as he will not be able to be seen at foreign meetings that can be handled by his minister of foreign affairs.

    He said tax evasion and corruption were detrimental to his frequent touring of the world hence must not be tolerated at all levels.

  2. Please for a change pipo be positive, I agree with RB, Pliz pipo don’t steal, the government doesn’t like competition!

  3. This is good Mr. President. Just as you demand responsibility from us for paying our taxes, we also want YOu and you stealing Ministers to ACCOUNT for how our money has been utilised. I DO NOT want statements such as ‘Govt disburses so much for that’ No what I want is so much money has been spent on that project and the project should be audited and completed. That is the accountability we want. If you can do that Mr. President then you will be giuranteed my votes and those of team. Are you going to do it? IF YOU are THEN stop YOUR ministers from talking about SATA.

  4. Also, Mr. Sata, we also want to hear from you the alternative plans for preventing floods devastating our Country year in year out, the food strategy in case of drought, sustainable education polcies to ensure we can guarantee education for all our Children today and the foresseable future. We also want to know your plans for job creation, sustainable health system without evacuating fat cats to RSA, your plans for solving the HIV/AIDS pandemic and the plight of orphans and street kids. By the way, we also have street adults, what are your plans for getting them involved in the economy? I do not want you to tell me about the Chinese but I want your plans for working with Zambians and Zambians in the diaspora to develop Zambia. I think I have put enough on your plates, over to you!!!

  5. Good Morning

    Tax evasion is a vice that is not only detested in developing countries. In Germany, there has been a massive crackdown on some citizens who were using banks in Switzerland and Lichtenstein (The Netherlands) to evade taxes at home. The authorities involved in the investigations are having a tough time fighting against the vice because of the banking secrecy rules in these countries. They are now reyling on stolen Bank data from insiders.

    BTW, it would be interesting to know how many Zambians also make use of this principality and nestle their fortunes in Switzerland & Co.?. At least it is an open secret that the Banks have a thriving business in managing a number of Third World statesmen’s money.

  6. RB is a fool, full of BS IN A.S.S! This fool has stolen cash for his stupid trip touring the globe and today he’s telling his fellow fools(MMD) not to steal from the poor. Kiss my A.S.S RB.

  7. Just what the hell is wrong with the colouring in George Kunda’s lips? Did he lick the backside of Dora Siliya and picked up some vicious discolouring agents or what?

  8. LET HE WHO IS FREE FROM SIN CAST THE FIRST STONE!

    Daimler has agreed to pay US$91.4 million to settle a case filed by markets regulator the US Securities and Exchange Commission.

    Daimler had earlier admitted to making hundreds of improper payments worth tens of millions of dollars to foreign government officials in at least 22 countries between 1998 and 2008, according to a deferred prosecution agreement filed in a Washington court.

    THE PRESIDENTIAL LIMO WAS PURCHASED WITHIN THESE TIMES!
    WAS MMD A PART OF THIS?

  9. Daimler was charged by the US government of offering bribes worth tens of millions of dollars to foreign government officials in at least 22 countries, for contracts between 1998 and 2008.
    China Petroleum & Chemical Corporation (Sinopec), China’s largest oil refiner, is also involved in the case.
    The kickbacks of cash and gifts of luxury armored cars, golf clubs and vacations helped secure government contracts from countries including China, Croatia, Egypt, Greece, Hungary, Indonesia, Iraq, Cote d’Ivoire, Latvia, Nigeria, Russia, Serbia and Montenegro, Thailand, Turkey, Turkmenistan, Uzbekistan, and Vietnam.

    4 MORE COUNTRIES WILL BE NAMED AND WILL ZAMBIA BE ONE OF THEM?
    MMD WILL BE SEEN AS BIGGER LIARS IN THE FIGHT AGAINST CORRUPTION.
    LEVY WILL ROLL IN HIS GRAVE.

  10. #10 If I remember correctly, you claim to have been discharged at the level of Lt. Col. I would expect you to use language consistent with somebody who excelled to such a respectable rank unless it was not on merit.

  11. Computerize the department and educate the business community on how to pay their taxes. Its sad how a lot of transactions go untaxed. House sales, car sales and a lot more money exchanging activities. Most important though, govt, spend some of that collected revenue on the tax payers and not on globe trotting.

  12. ” The ZRA has rewarded a number of tax payers for their compliance in paying tax. Among them are BP-Zambia Limited, Kansanshi Mine PLC, Zambian Breweries, Trade Kings Limited, Lamasat International Limited and Toyota Zambia among many others. ”

    Kansanshi Mine is to pay a royalty tax of $8.9 million. Now if the royalty tax is 3% of turnover, they have a turnover of $296.67 million.

    In reality, in 2008, they had a turnover of $1700 million, of which 3% would be $50 million, no $8.9 million. And this company is praised for complying to taxes?

  13. This shows just how shallow RB and his clonies can be. Kansanshi Mines turnover is 3 times what they declare. Kansanshi Mines turnover only from Gold was just over $2.3Billion and wonder what hampty dumpty is talking about. For some reason Humpty Dumpty and his few minions are alive to the fact the 200Kgs of Gold nuggets are produced at Kansanshi Mines and airlifted staright from Solwezi to South Africa. RB knows that but he choses to be bribed instead of letting them pay.

  14. Can RB tell us just how Gold nuggets from Kansanshi Mining plc are accounted for? I equally need this DULL President to tell us how Tax on Gold Concentrate is determined. I would require ZRA to invest in a Spectrophotometer which costs only $23,000/-, and scan all Concentrates from Kansanshi Mining been exported to South Africa and sold as Gold Concentrate.

  15. This is what Humpty Dumpty should be paid for and not flying around looking for women in all parts of the world. Just like in formal employment, we need to have a benchmark of determining performance of a President and let his pay be tied to his performance. What a DULL PRESIDENT.

  16. “He also officially launched the medium and small scale taxpayers’ office which is at Revenue House in Lusaka and in selected parts of the country.”

    This is a good move as it will enhance tax collection. Small and Medium scale can contribute a lot in terms of taxes and this can increase govt revenue which can then be spent on national issues.

    Well Done.

  17. What is ironic is how a simple investment in corrupt-proof technology, (I modestly predict) a two-fold increse in revenue can be attained, well that is excluding that from the mines. Anyone that has lived in a border town knows that the majority of revenue is pocketed by officials responsible for collecting. Question is have we come to embrace corruption at that level so much so that we are beginning to accept it as normal? While nurses and teachers earn peanuts, Revenue collecting officers are millionairs, yet both work for the same government. Now do not get me wrong, I feel perhaps they should earn more, it is the amount they get away with pocketing that bothers me. Here is an idea for our President; fix your outdated systems to keep up with the times in addition to demanding honesty

  18. I hear Sata is crying that his life is in danger, hu ha1 For one I did not think that one can kill Satan. During the time he and Chiluba were at the zenith of power, so many Zambians like Wezi, Ngenda, Paul Tembo, Ng’uni, Dean, etc either died or were nearly killed in engineered accidents. The shadowy figure looming large behind all these satanic state terrorist sad events was no other than Sata and Mwila. I just hope someone is plotting to kill and and kill him grissly and faster.

  19. Tax evasion can never be stopped but it can be reduced if the govt ensures the current system is changed and taxes are calculated fairly especially import taxes.The govt thru ZRA has been ripping people off by over-valueing goods imported by genuine businessmen and women,i think it’s pure theft!
    They should not be proud to say the revenue levels have gone up and i for one say for as long as the current system where ZRA officials come up with values of imported goods from their heads,tax evasion and corruption will continue,it’s not a lie but reality.
    It is also high time they built a fairer system that will enable those in the informal sector to pay taxes too,every little goes a long way so whether it’s K10,000 per month,a fairer system will widen their revenue base.

  20. #6 read the PF manifesto its online. Tax evaders should simply be jailed. Waste in Goverment expenditure should also be curbed.

  21. Yes it’s on this one I will support this tired president. Most Indians have 2 sets of invoice books, and would even ask if you need an invoice or not. They have to audited seriously, govt is lossing a lot of money thru this habit and it’s not fair for people who are doing straight business.

  22. EVERYONE, PLEASE PAY ATTENTION TO THIS – ZAMBIA’S FUTURE DEPENDS ON TAXING THE HECK OUT OF THE MINES.

    It truly is that simple. If Zambia taxes the mines for over a billion a year, it can develop. If it does not, people will continue to wallow in poverty.

    Because the mines are not taxed, government does not have enough money and borrows. This means the banks do not have enough money to lend to entrepreneurs, and charge usurious lending rates of over 24% interest. This means money is unavailable for legal entrepreneurs. Which means there are no jobs.

    When the government borrows, it reduces the value of the Kwacha, which means prices for imported goods go up, which means YOU pay for it whenever you buy anything.

    That is how it works.

    We need to tax the mines to develop.

  23. What I want to know is this: which of the parties want tax the mines to the max?

    I would like to support the PF-UPND to the max, have they made a definitive statement on the mines?

  24. Why does the ZRA reward companies for compliance in paying tax ?….What sort of reward is it ?..A trophy ?….A glass plaque..?

  25. Nine Chale, ” Tax evasion is a vice that is not only detested in developing countries. ”

    The USA has one of the worst problems. The more money corporations have, the more easily they can avoid paying taxes. In Zambia, it involves bribing the ruling party to get sweetheart deals.

    Globalisation has made thing worse, since many transnationals now have their headquarters in a tax shelter (Bahamas, Antilles, Jersey, etc.), their factories in a low wage country (China, India, Philippines), and their shops in the richest consumer market of the world, the USA.

    Welcome to the global sweathop economy.

    We can stop it by protecting our copper, our profits, and our manufacturers, and selling only finished goods.

  26. While I would like to see a broaden tax base for mother Zambia, ZRA processes are the least transparent hence people invade paying taxes. Until we see a level of professionalism & transparancy, people will continue to avoid paying taxes.

  27. You’re right…

    When foreign companies took over state-owned companies and especially the copper mining industry ( kansanshi in 1997, kcm in 2000, ‘equinox/lumwana in 2005…), they “negotiated” Development Agreements which prevents gvt from raising taxes for 20 years … and taxes have been capped (according to me it’s the reason why kansanshi mine has only paid $8.9 million) on the pretext that low copper price

    Former president Mwanawasa ‘s gvt (Minister Magande) was going to renegociate these DAs because of high copper prices…

    Why can that gvt not be able to do this ??? level copper price is so high today despite the last crisis !!!

    Enough talking, enough fine words, enough lies !!

    RB…. don’t take us for retards !!!

  28. # 17-28-29

    You’re right…

    When foreign companies took over state-owned companies and especially the copper mining industry ( kansanshi in 1997, kcm in 2000, ‘equinox/lumwana in 2005…), they “negotiated” Development Agreements which prevents gvt from raising taxes for 20 years … and taxes have been capped (according to me it’s the reason why kansanshi mine has only paid $8.9 million) on the pretext that low copper price

    Former president Mwanawasa ‘s gvt (Minister Magande) was going to renegociate these DAs because of high copper prices…

    Why can that gvt not be able to do this ??? level copper price is so high today despite the last crisis !!!

    Enough talking, enough fine words, enough lies !!

    RB…. don’t take us for retards !!!

  29. look at “ the small boss” in the background of the picture

    – dark glasses
    – sinister-looking face

    be careful Mr Michael Sata and Ms Edith Nawakwi !! 😉 😉 😉 😉

  30. 35 MikeTe,

    There is a way out though. The mines can be taxed on turnover, which is easy to monitor. Just have someone monitor how many loads of ore leave a mine and tax that – tax or confiscate every 5th load leaving the mines. Drop all taxes on the mines, except tax on turnover (royalty tax) and raise it from 3% to 20% or more.

    The Zambian government is a sovereign government. It can determine it’s own tax rate in any one year. At the time the mines and their defenders wanted the world to believe that these odious agreements had the level of international agreements and were somehow protected like international treaties. They were lying of course – they always lie.

    So the only obstacle left is the will of the government to tax the mines.

  31. DAs are legally unstoppable

    Look at : minewatchzambia > Development Agreements > Cyprus Kansanshi > 14.1 14.2 14.3

    Nevertheless you are right : “grz is a sovereign government”

    DAs were concluded while IMF hold a gun at zambia’s head, and certainly “generous gifts”. At this time, there was low copper price and foreign companies doubted the stability of zambia.

    Today it’s invalid, and using the argument of the high copper price, gvt must tackle this spoliation and scrap these DAs

    the amount of profit is actually enormous and it‘s only the beginning as investments are completed
    but as you said, the only obstacle is the will of the gvt

    confiscate every 5th load leaving the mines.. what a good idea ! otherwise mining companies will cheat on turnover thanks…

  32. to the transfer pricing

    eg mopani mine already uses subsidiaries of fqm and glencore based in Tax havens…

    zccm-ih website


    Mopani Copper Mines plc is majority owned by Carlisa Investments Corporation, which is incorporated in the British Virgin Islands. Carlisa Investments Corporation is jointly owned by Glencore Finance (Bermuda) Limited (81.2%), a wholly owned subsidiary of Glencore International AG; and Skyblue Enterprise Incorporated (18.8%), a wholly owned subsidiary of First Quantum Minerals Limited

    Zccm-ih knows that quite a long time, gvt knows that, RB knows that…

    Enough fine words, enough complacency !

  33. 38 MikeTe, ” DAs are legally unstoppable ”

    They have already been stopped. 🙂 They’re history. The law of the land is the Mines and Minerals Act, not any individual contract between the GRZ and a private company.

    They way the mines went on, you would think they were international treaties. Which are the only agreements that become the law of the land upon signing (at least in the US, my guess would be Zambia too).

  34. Let us hope he will now address the issue of his wife being a GHOST WORKER. That will mean something. When will he warn his wife, mwe bantu?

  35. hh, sata, rb, upnd, mmd, fdd, and others have big supporters, international donors and business people even entire governments…why for all this time they did not ask for development….they just want the power, the control and then what??? why didnt sata ask his taiwanese counterparts to bring us development that just putting oney in his pocket? why are we just having influx of chinese instead rb asking for develpment without strings from the chinese?? fdd dont just blab blab so you get the donor money, father bwalya now is also a party, let your donors build a bridge, rehabilitate a road, open a factory, employ 300 people…these small small things can make big difference, if you want support just open a plant for hiace bus spareparts so they are cheapened…people are employed

  36. 42 revealer,

    Let this or the next government collect $1.2 billion from the mines, and you won’t have to ask anyone for anything.

    In fact, let’s have some clawback for the over $10 billion Zambia has lost since the privatisation of the mines.

  37. 40 MrK,

    we agree

    but factually

    – kansanshi mine must LEGALLY pay over $300 million to zccm-ih, the arm of Zambian gvt but it only gives crumbs… and gvt closes his eyes…

    – $100 million swindled from former ZCCM and searched for by task force on corruption in 2007 but gvt hushed up that whereas gvt knows who play the dirty trick, and where is money !!

    Are this president and his gvt willing to scrap unconscionable agreements, “ILLEGAL” procedure ? certainly not…

    Are PF and his president Mr Sata willing to do this ? maybe

    WATU…. make the good choice !!

  38. # 42

    if Zambia raises its stake in foreign-owned mining companies or owns mines

    people would also be employed

    but zambian people would enjoy huge benefits

    Mr the Chineses…. Do not be so impudent with your money…

    Interest of your companies and others is to leave gvt without income or ZCCM-IH in agony, no money for developing zambia by Zambian people

  39. # 43 MrK

    “Let this or the next government”
    this… you ‘re very very very optimistic 😉 😉

    “over $10 billion Zambia has lost since the privatisation”

    just an example
    2004 : grz(zccm) sold 51% KCM to sterlite(Vedanta) for $50 million
    2008 : zci sold 28,4% KCM to vedanta for $223 million

    today analysts evaluate KCM at least $3,6 billion

    $2,9 billion part of vedanta 79,4%

    What a marveillous bargain for Vedanta!!

    Vedanta is going to list kcm on the LSE (and not on the Luse contrary to the desire of gvt)

    How many Zambian workers will get shares/stock-options in order to reward the sweat of their labor ????
    How many ???

  40. 46 MikeTe – “Let this or the next government” ” this… you ‘re very very very optimistic”

    Then we should have a true taxpayers revolt. Let no one pay taxes for a year, or until the government taxes the mines over a billion a year (which is the same as it gets from PAYE today).

    If a million people do this, there is no way they could all be put in prison.

  41. Be a Facebook fan
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    A federal grand jury charged a West Mifflin man with using other people’s names and Social Security numbers to file false tax returns and get tax refund anticipation loans.

    Eric Sinyangwe, 37, is charged with 28 counts of false claims, wire fraud and aggravated identity theft, according to court documents unsealed Tuesday.

    He used the business name Oubani Taxes to get the names and Social Security numbers in 2008, prosecutors say. If convicted of all counts, Sinyangwe faces up to 200 years in prison.

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