Friday, March 29, 2024

Chinese tax evasion scam exposed in Choma

Share

Government has unearthed a scam in which a Chinese investor in Choma has evaded Value Added Tax for 17 months.

This came to light when Choma District Commissioner Golden Nyambe made an impromptu visit to a Chinese shop- Chuen Zhu in the area following a tip from members of the public.

Mr Nyambe took the Chinese proprietor to task this morning for deliberately failing to comply with the financial regulations of the country which require every person or company registered to conduct business to remit VAT.

Chuen Zhu company allegedly issues customers receipts without a VAT charge, prompting the DC to undertake a physical inspection where he grilled management of the shop for alleged tax evasion.

Mr Nyambe said he found it hard to believe that a business enterprise of foreign origin could operate without remitting necessary tax to government.

He described the situation as unfortunate especially that government has continued losing revenue through unremitted tax at time when it is making efforts to raise more revenue to meet the huge demand for social services.

Mr.Nyambe demanded an explanation from management on how it has not been remitting the tax when it is a known factor that they should collect tax for government.

He said Government cannot afford to lose revenue in such a manner. But Jason Lui, owner of the shop, claimed he was not aware that the till machine which is supposed to effect VAT deductions is not functioning.

He blamed his workers for not advising him about the situation.

However, Mr.Nyambe directed the Chinese businessman to immediately ensure that the till machine is re-programmed so that VAT charges are reflected on the receipts.

ZANIS

22 COMMENTS

  1. They are many… why should you behave live MMD… Ba MMD ba fee colour mwaba necipasho… u look alike with this investor here kikikikikikik Lui, s tu pi ty mad-child come forward….

  2. Are we still getting Chinese to run shops under the PF? These people are scam of the earth. Can we not get better infestors other than those selling chicken, runing shops, digging drainages because we have plenty Zambians already doing this. We need Car assembly, Manufacturing, Mining, commercial farmers for investers and not these chinese we are seeing around We also need investers to come with their own money and build own infrastructure and not come to queue with us at Barklays and increase rentals by occupying already existing buildings. Who gives foreigners permits in this country?

  3. Weak monitoring system! Unless institutions charged wth such responsibility are capacitated, there wont be maximum revenue collection. Thats just one of the thousand businesses not remiting VAT.

  4. Come on, there is no crime here. Just because a receipt does not show the amount or percentage of vat in the sale price does not denote tax evasion. Please countrymen stop your id.iocy.

    • Then how do suppose an audit on VAT submissions be carried out if a cash business such as this does not include it on receipts?VAT numbers are unique to each business,receipts are worthless papers similar from place to place…..any semi-literate ***** can manipulate the number of reciepts issued,even on computerised tills.

  5. I cannot understand how the total amount of indirect taxes collected in a developing country can be lower than direct taxes with high formal unemployment. Just a clear sign that there is rampant indirect tax evasion.

  6. This is against the law and can’t go without punitive action. Tax evasion is a serious crime and just blaming worker on not knowing how to program a til machine won’t cut it. In fact ZRA needs to employ more field agents around the country to monitor these things.

    Even our exports leave the country without proper documents let alone letters of credit. Without letters of credit you can’t even have a true measure of our exports. It is very sad to realize that the old ZRA’s scurrilous style sleaze intimations of the past have since died down.

    Long back then customs officials were powerful elements in revenue collection but today they are more interested in their own businesses with no basis in trust leading to nothing but opprobriousness of the highest order. Cage the culprit!!

  7. THAT DOESN’T SOUND LIKE “tax evasion.” TO ME BUT TAX AVOIDANCE. TAX AVOIDANCE IS ILEGAL WHILE TAX EVASION MAY BE LEGAL.

  8. They have to get 17 months worth of accounts and get the tax back that way. Also fine the yellow man for playing dumb after all he is the proprietor he therefore knew what he was doing.

  9. I am not surprised. Tax evasion is part of the Chinese DNA, they don’t like remitting taxes to govt. but use it like it was their money.
    The implausible excuse of blaming the cash register is just one of their tricks. Govt must improve inspection and monitoring of these business outlets and must also mete out stiff punishment on offenders.
    Just look at what happens to the copper when it leaves the country and where it ends up.

  10. this chaps just dont collect vat in a normal way.they sell their wares 17.5% cheaper than the next guy so he generates more sales and gets an edge over the competition.you gotta be crooked to survive in this highly competitive retail trade you bloggers just don’t get it you never did business before.  you just depend on a payceck from your work.

  11. THIS GUY SHOULD BE IN PRISON!!!!!!!! IGNORANCE IS NO EXCUSE!!!!!
    Dealing the way we have with this guy, HE SHOULD BE LAUGHING!!!! Some “little chief” called a “District commissioner” giving him a bit of a rap on the back of his hand; LIKE THE COUNTRY HAS NO LAWS, if it ever had, IT WOULD THEN APPEAR, THE COUNTRY HAS NO ONE WHO CAN ENFORCE THESE LAWS!!! You think this trader is that STU#PID to claim his workers should have told him – HE KNOWS WHO IS REALLY STU#PID – the Little fella that believes his story!!!!

  12. Zambia has become A STATE WITHIN A STATE
    The Government has lost the plot
    1:….The Chinese in Luanshya, have an exclusive compound of their own…Zambian law does not apply there. 2:….KCM in Chingola has “LITTLE BOMBAY” compound, the same applies there. 3:…First Quantum in Solwezi has an identical compound at the Kansanshi mine. WHEN WILL THE GOVERNMENT WAKE UP??? THIS WOULD NOT HAVE HAPPENED UNDER THE KAUNDA REGIME!!!!

  13. why am I not surprised! And you wonder why their goods are so cheap! That’s your answer in addition to their low production costs in China and low operating costs in Zambia – i.e. low salaries.

  14. @ #7 Rod , there is wisdom in being silent over things you have no knowledge about. You think those numbers on a receipt are for fun.

  15. @ba nzelu, just shut up. If you buy something from my shop worth k 2 million and I proceed to issue you a receipt with the same amount, can you tell me where the so called tax evasion is? All it takes my dear is for the taxman to deduct 17.5% from the k2 million indicated on the receipt. Not indicating on a receipt that the purchase price includes 17.5% vat doesn’t denote tax evasion. You are just been silly. It would be suspicious if the chinaman was not issuing receipts as it would be impossible to calculate vat. The problem with Zambians is that you are not shopkeepers and do not understand business taxes. The chinaman is evading taxes because his receipts don’t show vat, my foot!

  16. I need to indicate our thankfulness for the kind-heartedness providing help to folks that truly need help with the concept. Your personal devotion that will get the content close to became exceptionally beneficial and also have continually helped personnel like me to arrive at his or her aims. The beneficial ideas indicates significantly if you ask me and in many cases further to our co-workers. Thanks; coming from everyone of us.

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading