It has emerged that the Post Newspapers Limited proposed to Zambia Revenue Authority (ZRA) that it pays its entire circulation income of K4,000,000 per month in order to clear the tax liabilities of K26,856.230.91 inclusive of penalties. However, ZRA Commissioner General Berlin Msiska rejected the proposal to pay tax liabilities in installments.
According to the proposal the instalments were to be paid to ZRA by creation of an Escrow account to which ZRA would be the sole signatory into which The Post’s circulation income would be paid and that it stay current with its liabilities but Mr Msiska still refused.
Details are that on September 9, 2014 ZRA’s commissioner – domestic taxes – wrote to it advising it that its tax liabilities were at K26,856, 230.91 inclusive of penalties and invited the newspaper’s representatives to a meeting on September 11, 2014 to discuss the settling of the liabilities.
The paper said at the meeting, the commissioner asked its representatives to make a proposal on how its liabilities would be dealt with and the newspaper proposed that it pays the principle amount owed in six monthly installments of K2,000,000 payable at the end of the month effective September 30, 2014.
It further proposed that the balance of K1,758,180.20 be paid in the seventh month on March 30, 2015 and that it would then make payments towards the penalty charges in four equal monthly installments of K1, 957,635.05 effective April 30, 2015 and finally pays interest of K929,231.63 on August 31, 2015.
The newspaper said that instead of the commissioner – domestic taxes – writing back, it was Dr Msiska who wrote back on September 19, 2014 refusing its proposal despite it having been asked for by ZRA.
Another meeting was held on September 22, 2014 where the newspaper proposed that its entire circulation income of K4,000,000 per month be paid to ZRA by creation of an Escrow account to which ZRA would be the sole signatory into which The Post’s circulation income would be paid and that it stay current with its liabilities but Mr Msiska still refused.
Screwing the screws tighter, life is a circle. Now its the post’s turn to dance. In this era of changing govts, how did they miss ths? How does one thnk they can do away with tax?
Let the expenditure be written off as they are the only worthy newspaper worth reading in zambia.
Write the sent off we all demand from lusakatimes.
Thanks
Sata has been sleeping on the wheel;no doubt about that. Why did he let Mmembe get away with not paying tax for so long?
When is ZRA going to pursue those companies owned by Sata, his relatives and close friends for non payment of tax?
Even some of the companies constructing roads and universities, are all behind in tax payment. When will Sata allow ZRA to agitate them to pay up now that donor funding is about to dry up due PF’s financial recklessness?
PF minions have lived in f00ls’ paradise for a long time now.
Msiska is right in refusing Mmembe’s proposal to pay tax out of Post circulation income because the post ‘s demand has fallen out there. As such it does not offer a guarantee that the tax bill will be paid in time because Post sales have really gone down the drain.
Agreeing to such a proposal is like telling the Tax man to sell the past paper on Mmembe’s behalf in order to collect tax owed. Mmembe is a joker on this one.
If Msiska allows that proposal then all those owing ZRA will use it too negotiate for their Tax arrears settlement plans. Its simply a bad debt settlement plan.
Well done Msiska, but you should now pursue illunda chalo and those businesses owned by prominent PF members as well.
@Wanzelu,
Well said on that one! Few will see that loophole and trick by Post calculated to further defraud …
I am not a Mmembe fan but if the Post has offered to pay the outstanding tax liability it is prudent for any normal government to accept the offer. By bringing down the Post a lot of people will loss their jobs and the government will loss future tax revenues from the company. It seems vendetta and attempting to muzz any opposing voice is the real motivation behind this attempt to cripple the Post Newspaper. Politicians have very short memories indeed, they forget that they will one day need the Post when they are on the other side of the political divide. They should learn a lesson or two from the Wynter Kabimba debacle.
@Wanzelu? your obsession with Sata is amazing. You need mental help. By the way according to you He died on 20June so it doesnt profit you to talk about a corpse. You have to get your Bongo Bongo checked dude! something seriously wrong with you. By the way we never saw those ‘national wide demos’ with a deadline of Thursday. Iam wondering maybe they took place at a Farm with some cattle.
Msiska took over the case from the Domestic Taxes Commissioner, it could have been Chikwanda himself handling it.
Mmembe insulted the wrong person, it is PERSONAL my friend, don’t mess with Chikwanda…. Nalikwebele tabulwapo.
Tho I DONT concur with Mmembe BUT I will stand to fight ths regime till it controls the messes it has created.
Grandpa is 77yrs & I forgiv him BUT will NEVER be ruled by Nkandu Luo.
@1.6…..Wanzelu is ALWAYS RIGHT Sata died in June, the Sata u r seeing is a scrap one, the Brain (dimentia), Heart, Kidneys, Lungs etc r DYSFUNCTIONAL & very DAMAGED.
@Zed Patriot
My bro ZRA has agreed to the post to pay the money in instalments but not the attachment of the repayment plan to how many papers the post will sell. What Mmembe is demanding is unrealistic. Why should the burden of raising money to pay tax arrears be transferred to ZRA? LT does distorts some facts some times.
Mmembe should get money from where ever he can and settle the bill end off. If it means him borrowing from Nchito , Kabimba, or his other businesses let him do so and find the money to clear his arrears.
Tax collectors should not be bothered about how and where the debtor gets the money, it should just demand the money.
Not paying taxes is stealing from not only the Govt. but from the citizens as well and we know that so many people and firms are guilty in this area. Post therefore should not brand some people ‘thieves’ because in this case who is the thief? If you live in a glass house do not throw stones at others.
Some media houses are increasingly becoming disappointing. They are openly using their media to fight their opponents/enemies.
Why does Mmembe want the tax arrears instalment be attached to how many papers he sells?
Could it be that Mmembe entered into an agreement with Sata that he would not be able to meet his tax obligations if the paper sales go down drastically as a result of supporting PF?
Just my think folks.
For the Post to organise someone to tape/bug a citizen- AB Chikwanda, known as spying, is unacceptable in the highest order. For LAZ to turn a blind eye on this unethical conduct by one of their member, Fred M’membe is unacceptable.
HE Sata should unleash state organs to rout M’membe or else he holds everyone at ransom through his clandestine nefarious spying. Ba OP, DEC, ZP where are you?
Chikwanda should seek a gag order against the Post and Fred who are no longer acting in public interest but pursuing a personal vendatta as outlined in Fred’s opinion of instant date.
The proposal should be given due consideration and let the company remain afloat.
ZRA asked post newspaper to come up with a proposal and they did, If ZRA was not happy it should have come up with a counter proposal and then engage the post.
It would not be in the interest of the country to see the post fold up and consequently sending more than 200 employees onto the streets
TO MMEMBE I SAY
‘IF YOU LIVE IN A GLASS HOUSE DON’T THROW STONES’
TO CHIKWANDA I SAY…
‘IF YOU ARE IN A PUBLIC PLACE DON’T THROW STONES CAUSE YOU MAY HIT ONE OF YOUR OWN’ .
the monkeys are fighting. they have just realised that the trees are few and that they all can’t fit in them. the law of the jungle shall prevail, the weak will die and the strong will survive.
The Post has a history of not paying its liabilities. Anyone who can trust them now, will be disappointed. In Latin they say, falsus in uno, falsus in omnibus (untrue in one, untrue in all).
Wanzelu,
Great truthful analysis.
You know what facts are all about. Saulous is slowly disappearing, only echoing in Mushota’s propagandized through PF, Kudos et al cadres.
Go and read the post! guns blazing!,,,,, PF gave mmembe too much leeway, the guy has fingers and legs into OP,,, coming up with a phone recording of chikwanda!!!!,,,, its like a story of bandits(PF and the post), who robbbed a bank together,,, midway on the run, they start fighting amongst themselves!!!,,, barman put my beers ku bottom ya fridge,,,, am coming after 17;00hrs
The interesting thing in all this is that it is now coming to light that Mmembe is actually a poor businessman. It seems whatever business he runs falls into debt and then he tries to circumvent that debt by underhand deals with the government of the day. I think I will give a pass on Sata on this one. He may not have been aware that this was going on. But I do believe ZRA was aware.
The gloves are off folks. Mmembe Namakando is taking the fight to Chikwanda. For full story get hold of the Post of 24th September and read the lead story. If your Bemba is rusty, get an interpreter and get the juices.
At Wanzelu, dont you know that there are so many PF business men who are not paying tax? Just the other day this online publication said Yamba, the secretary to the treasury is not paying tax. ZRA complained about Yamba not paying tax. Is Kambwili paying tax? We always see his trucks crossing borders without paying tax. If Msika wants to make sense, he must treat everybody equally.
“Some of them were even dishonestly claiming that since Michael Sata became President of our Republic, The Post stopped paying taxes, when the truth is that from September 2011 to this month, The Post has paid K45,858,624.07 in all sorts of taxes, and K20,225,679.61 of this being Pay As You Earn. So what do they mean by saying The Post is not paying taxes? Anyway, they are never ashamed of lying. How else can they live if not with lies, by lies? – By Post Editor (Editorial 24-09-2014)
“On this one, Chikwanda will pay a very high price for his desperation.”
M’membe the snake charmer should have known that one day the cobra would strike. There is truely no honour amongst thieves..
Give unto Ceaser what belongs to Ceaser, same must apply to Shoprite, ZambiaSugar, Zambeef who up today haven’t paid a fine (or had any arrests) for being proven to have traces of formaldehyde in their beef products. Its fair and good the Post must pay but please let these other companies begin to own up as well.
Hats off to Dr Msiska. Those that want to show us there holier than thou should be the ones in front to pay what’s due to the Zambian people.
Fred MuMmembe seems to be a dead broke rat. Waiting for DBZ to equally pounce on this rat.
Msiska is an !diot. Where has he been when the Post was not remitting it’s tax obligations? How many organizations and individuals are not remitting taxes because of their support for PF and what is this tool Msiska doing about it? Let the Post pay the taxes as suggested. Shutting it down is !diotic as it will lead to the loss of jobs and taxes. Mmembe is a vile character but insisting to shut the Post down is equally vile and !diotic.
Post newpapers is about to become ghost newspapers,shut them down and lock Mmembe in Guantanamo bay- they’ve been abusing their place in society too much.
So ba Msiska all you want is to liquidate the company? They hav agreed to pay even the penalties. They hav admitted their wrongs but you insist to go it your way. Remember that you are pushing them to dig even deeper. The Post is not alone, there are more who are i. the same boot.
These People have been responsible for making Sata & P.F. Unpopular.
Mmembe knows his duties as a responsible Zambian is to Pay all Taxes on time, as this helps the smooth functioning of the Nation.
Unfortunately Mmembe, & Cartel, have been behaving like Gangsters who own Zambia.
Its pay up or Chimbokaila, & he knows what will happen to him in there, with the reputation he’s got about some issues,
Other companies,especially those connected to Chikwanda, owing ZRA must make sure that they pay before Meembe finish paying.Meembe has a lot of information concerning Chikwanda,and the infor is on record.What Meembe has published in the Post is merely a polite warning to Chikwanda.
There is no doubt that this case has politcal finger prints all over it. M’membe is being specifically singled out by some forces that have have access to power and don’t like him. And this is what makes our system really stink to core.
With that aside, I want to know why M’membe allowed himself to fall in this situation. He is a man who throughtout his career has called other people corrupt , crooks, thieves , thugs, you name. Does he believe in his head that NOT paying tax is not a moral issue? Why does he want me to suport him and even trust him when he has been breaking the law all along. Would he have ever paid these taxes if his friends never lost power? I need answers from HIM here before I blame ZRA and PF
In Fred’s world you break the law only when you are in Government because he exposes you and you make him a hell lot of money in paper sales. Fred also has the DBZ-gate scandal outstanding, GBM, AC and Kambwili (Imbwili) to shrug off (these are some of his enemies waiting for their moment). What about RB who is also highly speculated by your camp (MMD) to make a come back? The WK card/project didn’t quite work. If the President is ailing, his last hope, as is speculated Fred is on a shoe string. His position is unenviable. But then again Fred is Fred he has brought down the biggest prizes before. this might be a walk in the park. If he pulls this one off he should be crown the King of Kings in Zambia.
Ditto @Chief Bootlicker
It’s mind boggling as to what plan he had for his tax payments, thats if he even had the intention to ever pay.
This is very good action by ZRA. It’s time to get some Revenue. They should go after all the big fish. RB next please.
LT, do you know the Msiska you are referring to or you are just guessing? Is it Mr. or Dr. Msiska, get your facts right.
@pf leader,are u lost,the article says Berlin msiska,so what facts do u want?weather they put mr/Dr. Berlin msiska,his first name matters.they didn’t say Rowland msiska!
But ka mushota who do you thk you are get a life pan-in- your-par-call.
I dont support Mmembe BUT AFRICANS are very FUN CREATURES ON EARTH. I will ask God why some people are Africans.
Tht money still will go INTO SOMEONE’s pocket !!!
It pains !! Even if people say give Ceaser wht belongs to Ceaser BUT ths money will GO INTO CROOKS’ pockets.
yes the post was wrong but let look at the number of zambians and their families working for this enterprise.
Membe is now swallowing his own bitter pill for supporting PF not RB and MMD this chap killed MMD by cheating the Zambian people through his newspaper that MMD is corrupt and SATA is a clean man please vote for him, but now who is more corrupt Party and Govt? within one month of firing Kabimba MEMBE has shown us through his editorials how PF and its Govt is sticking corruption and looting state resources and Zambia we are watching without any reaction this IS very sad. RB was a true leader because if he wanted he would HAVE closed the post but now it is the PF who wants TO close the POST the Party Membe campaigned for until state house. MMD was mature and upright party that is why MEMBE did not want it. VIVA MMD VIVA RB
mmd struggled itself, starting with third term issues, suspending vice president election at convention, and loving dolla too much.
It is amazing how organizations like ZRA, ACC, FRA suddenly wake up from deep slumber when a company previously in good books with the ruling party falls out of favour. Professional wake up indeed!
The DG has the powers to reject any instalment which he thinks is not enough. However, this is nosense for him to reject the plan. post has not refused to pay and has accepted the default, that is why they have charged them interest and penalties.
Now i wonder what the DG is trying to prove by refusing to accept. The ZRA regulations allows the settlement of debt in instalments and this one is not an exception. Please let us not just comment without understanding the taxation syatem in zambia. ZRA and the DG have to swallow their pride and accept the proposal otherwise they will never win and post definately did the correct thing to file for an injunction.
Lots of sense there. glade to know we still have intelligent bloggers
That’s the way its suppose to be done have a time frame ZRA should not pretend to be working when its just politics at play how many companies will survive if demands are made like that SHAME
To AB Chikwanda
Make no mistake, remember FTJ Chiluba, RB Banda, LP Mwanawasa, MC Sata.
All these ultimately succumbed to Fred Membe. And he has said it that he intends to pulverise you to smitherins. He has declared you ‘dead’ for ‘sending’ ZRA to search his business empire.
Unless and if you can and must defeat Fred Membe, you are dead! Take this warning seriously.
i agree with you 100%. Mmembe will not take this lying down. The problem is ZRA. If ZRA was professional and without any political interference, they should have collected the tax. Political interference has permeated the civil service and by 2016, the civil service would be dead. we have cadres all over in government and statutory bodies.
From the way Fred has started crafting stories about corruption in PF, fred seems to be sure that he will raise enough sales to deposit in the escrow account for ZRA. But then of late (post-kabimba) we have learnt that fred is not infallible after all, even HE fred can miscalculate. So supposing fred’s paper fails then what happens to the ZRA debt?
@nostradamas, this is a phd syndrome
Fred has been on a phone call to New York and this temporary solution is now in place. I CAN SEE SATA STILL HAS SOMETHING IN HIM. Am slowly starting to regain some confidence in him but Wait for SELF DISTRACTION BUTTON NUMBER 2. There may even be the TOTAL DISTRACTION BUTTON (BRING OUT THE DIRT WK), Zambia just got better if not worse. WK – The remote assassin, AC – The silent assassin.
The payment plan is just a way of buying time by Post. They are hoping that in six months they would have regained their influence in grz or maneuvred their way in courts of law to avoid paying tax or debt -DBZ style. The way to go ba ZRA is to grab their property and sell if they dint pay rhe tax. Let them borrow, if there is anyone out there still willing to lend them money.
Generally we all know that many institutions and companies in Zambia do not pay tax and its been left like this especially those in good books with the party in Government. If everyone paid their share of tax this country could have been more developed. PLEASE ZRA MAKE SURE ALL PAY THEIR SHARE OF TAXES OR GOVT SHOULD FIRE ZAX BOARD AND SENIOR MANAGEMENT FOR FAILED TASKS. PERIOD. PAY YOUR TAX POST OR CLOSE.
Let them increase their monthly instalments. Their proposal doesn’t make sense at all at all.
There was nothing wrong for Post to settle outstanding tax obligation through agreements
.There is just a political hand that is twisting ZRA so that they don’t accept Post suggestion.Agreements are there even in bigger institution like NAPSA.Clients whose cash flows are difficult to settle NAPSA obligation are allowed a breather to settle principal amounts first and thereafter penalties follow.This is a norm in all business sphere considering the unhealthy books of account most institution have.It is a pity that private institution are not given a space to breathe where payment of statutory obligations are concerned.It is not the same with foreign companies which even enjoy tax holidays for a long duration.It is a big shame!!
I guess it is now safe to say that “ONLY THE ENEMIES OF GOVERNMENT PAY TAXES”.
Any proposal for repayment should be welcomed. ..as going to courts and sending bailiffs is just too costly for both parties.
Zambia is full of cowards and stupid people, reading from the bloggers above got me feeling very pity for my country. The imbecile Membe has been stealing from you, and all you can say is he shud not be
prosecuted. Is this not the same dog that has been calling people all sorts of names. What presidet will ZRA set by going Membes way. The man has out lived his usefulness to the society, it’s time they caged this dog. Don’t forget about k14 billion. He is a pain in the ass to law abiding citizen like myself. Only a person with questionable morals can support this Muppet.
@2Pac: Insulting the other bloggers above just because they hold a different view from yours on this topic, is arrogance. Except as it should be that your memory is too short; you should be able to recall that a few years ago, president Sata fired certain high court judges for an unpopular court ruling against Fred Mmembe and company. He, instead, brought in a Malawian judge, I think a certain Lovemore Chikopa, if I am not mistaken, to come and retry the case. That became a scandal.
Mmembe was in good books with PF then. Now it is clear why PF is turning the heat on him and his Post Newspaper. It’s because Mmembe had supported WK and his aborted campaign for the presidency. ZRA are not being professional. They are just PF’s political hand – Zambian politics as usual!
It’s all PF witch-hunt.
This year seems to be ending on very good note with the PostNewspaper on the other side of the Goverment. It was really boring to read the newspapers in Zambia. Now with the post on ther other side, I’m very pleased. It is very good for our democracy.
I can assure that the Post will not close but Chikwanda is digging a grave for himself and the PF. Chikwanda is a business man with connections to so many companies. Just watch and see what revelations about chikwanda tax will come out from the post.
Just see the verbatism in today’s post. They have more information about chikwanda than he knows. ELO CHAWAMA NOMBA. WE WILL SEE WHO WILL FALL BETWEEN Mmembe and Chikwanda.
Now you are talking!
@8 kavuyi
Well we can’t wait! ZRA must collect from these people of no principle. We have a number of big projects to fund to allow the poorer rural people to live like urbanites. 50 years of independence and more than half the population of Zambia still lives in poverty.
Mumembe just pay the money period. You have the money with you coz you were banking it. So offload it unto ZRA. You like calling others thieves while you also are a thief. ZRA is also questionable where was ZRA all these years of the post tax theft. What about the PF andGRZ? PF be warned thati
Membe is must be very rich than HH,
From September 2011 to September 2014, he has paid more than K45 billion in taxes. And yet in 2011 HH declared that he is worth K40 billion in assets and cash.
Months after David Cameron came in power, Inland revenue recalculated tax for many Britons; the government was partly to blame hence the resolution was that the tax burden was to be spread over a maximum period of 36 months. A win-win situation in my view. Government got its tax, and citizens were not over-burdened with the repayment. Key lesson: (1) our friends strive to resolve issues without punishing their citizens.
Mmembe is a Zambian; love him or hate him, his company has offered to repay. ZRA need to take the blame as well. If I was the judge, i would allow the Post to pay in instalments.
Zambians: why do we have to hate and hurt each other so much?
@Rigoe some citizens must be sorted out for trying to cheat the system. Mmembe was hiding in the name of cozy relationship with Sata/PF and when they get exposed, they have to dance to the tune of the ZRA. Stop promoting stealing
@Peter, read todays post news paper; then comment afterwards.
@Rigoe Sanchez
There are too many wealthy individuals who are getting away with public funds either through fraud or tax evasion. Zambia is 2nd largest copper producer in the world, how is it that the standard of living is worse than the poorest countries in the world?
it’s not about hate, but that these people are criminals and we need to start collecting revenue so our economy can be based on that rather than donations from Western countries and bodies,.
1st..wats the reason for him not to have paid the tax wen it was due coz thats stealing in the 1s place and its also dishonest that he deducts PAYE which he does not remit..some one out there who pays tax has died or lost a relative coz the money that was to be used for medicine waz being used to finance the trucks that Post got…
and just a quick one..wat type of thing is MUSHOTA…
Birds have come home to roost! where the hell was mmembe to accrue such a huge tax bill. Mmembe is a shameless hypocrite, he lambstated mining companies while POST was NOT remitting PAYE. Do not let him off the hook let him pay TAX, the fault lies squarely with him.
People who live in GLASS HOUSES DO NOT THROW STONES.
Yes it isn’t right to politically persecute someone no matter what. PF and ZRA also share the blame for this scandal.
However I don’t understand The Post’s argument on this issue. First tax is paid from actual disposable income earned (it is a percentage) and you can never be obliged to pay tax on anything you haven’t earned (I.e. future or projected income). So the excuse and logic of doing it tough should never arise. I would also think that this money does exist in their account somewhere so why can’t they use to pay tax?
Also ZRA needs to update their revenue collection so that it is automatically deducted from company revenue and wages paid to employees.
Bloggers read the Post. Mmembe has fired back big time on Chikwanda and ZRA. You never can underestimate the guy. Its game on.
@ Saul,
True Mmembe has come firing on all cylinders and it’s hard ball..game on!
IS MMEMBE THE MOST DANGEROUS MAN IN ZAMBIA?
Mmembe is a well learnt person who knows very well the rule of the law.He campand 4 PF but that does not gurntee him to avde tax.PF is corrupt today bicoz wynter has been kickd out.If I comit murder are u sayng I shuld not be jaild bcoz I ve got pipo I look after.What about if u change government,how many people lose positions?We ve intergent educted fools who can’t reason that zambia is an animal farm.The cartel cabinet is still workng.Why shud zambian politics be contrld by post.Mines ve been closed b4 but where did the workers go.Mmembe is equally a thief. law and justce shud take its course. Governance has now gone to the dogs.The post shud just pay period.As zambian we ve leart one or two thingz from all this saga.
ZRA is refusing Post propsed settlement plan baecuse the POST had defaulted and hence can be trusted. They need to settle the debt all at once. After this settlement, DBZ will commence its own debt recovery. As we all know DBZ and ZRA all report to Chikwanda.
It appears there is a silver lining between Mmembe and Liato, crudeness in theft and craftiness in theft, all end up in court as convicts.
Let Mmembe just pay or lock him up, the faggot. Tax evasion is a very serious crime.
The fact that Mmembe is recording people’s conversations shows his desperation.. And didn’t a whole administration in the USA collapse because of such tactics? Who does Mmembe think he is? If the phone conversations he makes with his buddies are laid bare, how would he feel? This is the last straw! This guy needs to be put in his place forever. Shaka said “do not leave your enemies standing because they will remobilse and come back for you”….
This Mmembe guy must be sent to jail!he thinks he is the most wise Zambian!honestly how many times a day does Mmembe gossip about others?they say “kumbali kutukwe mfumu”,simply meaning “in the king’s absence,subjects talk hell about him”.we all joke like Chikwanda joked!hope ba Sata won’t act here over Mmembe’s nonsense!guys let’s stop buying Mmembe’s Post as he has shown his true colors!he can’t be trusted!pay our tax as we all pay!so u bribe Govnts by writing good things about then so that tax is not paid by Post! Useless newspaper!