The Zambia Revenue Authority (ZRA) has undertaken significant actions following allegations of tax evasion and non-disclosed gemstone operations by several entities. ZRA Corporate and Communications Manager Oliver Nzala confirmed that during a search operation at Good Time Steel Company in Kitwe, a staggering amount of USD $250,000 and 2.5 million Zambian kwacha were seized. This followed allegations of tax evasion against the company.
Good Time Steel, a partner of Tubombeshe Mine Limited, came under scrutiny for alleged tax evasion and failure to disclose its gemstone production, leading to the seizure of funds suspected to be proceeds of crime. These seized resources will be handed over to the Drug Enforcement Commission (DEC) for further investigation.
Additionally, Tubombeshe Mine Limited in Lufwanyama faced a thorough search operation by ZRA due to allegations of non-disclosed gemstone operations and potential tax evasion. The findings pointed to discrepancies between reported and actual gemstone production, potentially indicating non-compliance with tax regulations.
In response to these developments, ZRA, in collaboration with the Ministry of Mines and Minerals Development, has developed a Gemstone Production Reporting and Export Permit Module. This digital platform aims to enhance transparency and accountability within the gemstone industry. The system allows for online reporting of minerals and facilitates the processing of export permits, aligning with the government’s efforts to curb illicit practices and increase tax revenues.
The Gemstone Production Reporting and Export Permit Module will complement the existing Mineral Output Statistical Evaluation System (MOSES), designed to monitor mineral production and export permits in the mining industry. The introduction of these digital platforms is expected to bolster tax compliance among operators, reduce malpractices, and ultimately augment national tax revenues.