The Zambia Revenue Authority (ZRA) and the Drug Enforcement Commission (DEC) have successfully recovered over K9.4 million in taxes from AFME Metal Exchange Limited following an extensive investigation into the company’s tax compliance. The recovery is part of a joint effort to address issues related to the gold scam involving one of the co-accused, Shadrick Kasanda, who is a director and shareholder of the company.
According to a joint statement issued by Oliver Nzala, ZRA Corporate Communications Manager, and Mwenge Mulenga, DEC Public Relations Officer, the investigation focused on Mr. Kasanda’s financial activities, revealing significant unexplained sums of money received from overseas sources without proper tax declarations. Additionally, funds were found in his name without corresponding tax declarations or accountability to the Zambia Revenue Authority.
The recovery process, initiated by the joint investigation, resulted in the assessment of over K52.4 million. The DEC blocked the relevant account, and ZRA garnished it to facilitate the payment of the total assessment amounting to K52,449,413.37.
To safeguard tax revenue, a notice under section 23 of the VAT Act (cap 331), section 171a of the Customs and Excise Act (cap 322), and section 84 of the Income Tax Act (cap 323) was issued to forfeit a total of ZMW 9,433,000.00 from AFME Metal Exchange Limited’s bank account. This amount represented the sole available funds in the account at the time of the DEC’s seizure.
Mr. Nzala and Mr. Mulenga warned that entities failing to comply with tax laws would face scrutiny from Law Enforcement Agencies through the Inter-Agency Framework. They urged all taxpayers to adhere to tax laws and fulfill their obligations to avoid legal consequences.