ZRA Recovers K1.3 Million from Ding Cheng Investments for VAT Fraud

Zambia Revenue Authority (ZRA) says it has recovered lost revenue amounting to over K1.3 million from Ding Cheng Investments Limited for Value Added Tax (VAT) Fraud, after securing conviction of the company in the Economics and Financial Crimes Court in Lusaka.

ZRA instituted criminal proceedings against Ding Cheng Investments Limited in the Economics and Financial Crimes Court Lusaka for furnishing false returns and statements, contrary to Section 43 of the Value Added Tax Act Chapter 331 of the Laws of Zambia.

According to ZRA Corporate Communications Manager Oliver Nzala, the company jointly and whilst acting together with unknown people, provided information to the Authority purporting to have supplied taxable supplies to Southern Africa Alloys Limited when in fact not.

Mr. Nzala said the fraudulent action, which is believed to have been committed between 1st April, 2023 and 31st December, 2023 in Lusaka, made the Government to be defrauded of over K1.3 million.

“When the case came up before Honourable Kaunda Sakwanda on 3rd December, 2024, the convict informed the Court that he was evoking the provisions of the Plea Negotiations and Agreements Act number 20 of 2010.”

“The Authority did not object. The convict paid the Authority a total sum of K1,471,979.83 comprising of tax evaded and the cost of prosecution. He also pledged to implement the Authorities Smart Invoice when transacting with others,” Mr. Nzala revealed.

He added that the Court further fined the company K40,000 on all the five counts of furnishing false returns and statements, and in default warrant of distress to be issued.

“The Authority has intensified its monitoring mechanisms in order to detect tax fraud because it has been noted that such crimes are rampant and are a danger to the economic well-being and development of the country,” he stated.