In a landmark ruling, Spax Mining Limited has been convicted by the Economic and Financial Crimes Court (EFCC) for evading taxes totaling K4,490,523. The company, led by its owner Kabaso Mulenga, widely known as Spax, admitted guilt through a plea bargain.
As part of the resolution, Spax Mining Limited repaid the full amount of the evaded taxes to the state. Additionally, the company was ordered to pay K100,000 in legal costs to the Zambia Revenue Authority (ZRA) and was fined K13,500 by the court for its actions.
ZRA Takes Firm Action
According to a statement from ZRA corporate communications manager Oliver Nzala, the authority initiated criminal proceedings against Spax Mining Limited on the Copperbelt. The prosecution stemmed from violations of Section 43 of the Value Added Tax Act, Chapter 331.
Between January 1, 2022, and August 31, 2023, the company submitted fraudulent tax returns, falsely claiming compliance with tax laws by reporting taxable supplies that were not received. The ZRA identified these discrepancies as part of its ongoing efforts to combat tax evasion.
Strengthening Zambia’s Tax Compliance
This conviction underscores ZRA’s unwavering commitment to enforcing tax laws and protecting national revenue. Mr. Nzala emphasized that tax compliance is essential for Zambia’s economic growth and national development.
The case serves as a warning to businesses across the country that tax evasion carries significant legal and financial consequences. The ZRA has reaffirmed its dedication to pursuing such cases to ensure a level playing field for all taxpayers.
Spax Mining Limited’s conviction is a victory for justice and a reminder of the importance of ethical business practices.
