Tax Consultant Jailed 18 Months for VAT Fraud

Lusaka Surbodinate Court has convicted and sentenced a tax consultant to 18 months imprisonment with hard for forgery and uttering, which could have resulted in revenue loss of over K1.2 million in Value Added Tax (VAT) refund.

The offence is contrary to section 352 of the Penal Code Cap 87 of the laws of Zambia.

In a statement, Zambia Revenue Authority (ZRA) Corporate Communications Manager, Oliver Nzala identified the convict as Jones Malete Nyeleti.

“Facts of the case are that Jones Malete Nyeleti on unknown dates but between the 1st January 2020 and 27th August 2020 in Lusaka, jointly and whilst acting together with others unknown, with intent to deceive or defraud, did forge a document namely Audit Agreement form between CD Middleton Enterprises and Zambia Revenue Authority (ZRA) purporting to show that it was genuinely issued and signed by an officer of ZRA when in fact not.”

“He further uttered the same document to the Authority. The accused was found guilty,” Mr. Nzala stated.

Mr. Nzala said the Court sentenced the convict on both counts to 18 months imprisonment with hard labour with effect from today 25th November 2024, adding that the sentences are to run concurrently.

“With this forgery, the Government of the Republic of Zambia could have lost over K1.2 million in VAT refund. The Court, in passing the sentence, stated that the crime committed by the convict was serious and needs custodial sentence to deter would be offenders.”

“As an Authority, we have noted that the cases of VAT Fraud have been on the rise and what we have done is to ensure that once these cases, we take them to law enforcement and the courts to ensure that the revenues that are lost are recovered,” he added.