ZRA secures conviction for tax-evading lodge

ZRA secures conviction for tax-evading lodge
By Maluba Jere
Sun 30 Jan. 2011, 04:00 CAT

NDOLA senior resident magistrate Katrina Walubita has found Chabanga Lodge guilty of not declaring tax returns amounting to K232,436,421 and evading payment of Value Added Tax (VAT) worth K 187,095,546.

Following the guilty verdit, Magistrate Walubita ordered Chabanga Lodge toagree with the Zambia Revenue Authority (ZRA) on time to pay the taxes due within three weeks. She also fined Chabanga Lodge K900,000 and K 1, 350,000 on counts one and two respectively, failure to which the Lodge may face three weeks simple imprisonment.

This was in a case where ZRA took out a legal suit against Chabanga Lodge for making false tax returns contrary to the Laws of Zambia.

It was alleged that Chabanga Lodge, being a registered taxable supplier in terms of the VAT ACT between April 1, 2009 and January 31, 2010, made and submitted to the ZRA VAT returns in which VAT from Chabanga Lodge Limited and Solwezi Lodge sales amounting to K232, 436,421.00 with interest of K21, 800,426.00 was not declared for the months April 2009 to January 2010.

On the second count, Chabanga Lodge was charged with evasion of taxation contrary to the Laws of Zambia; Particulars of the offence were that on April 1, 2008 and May 31, 2009 Chabanga Lodge fraudulently evaded to pay a VAT amount of K187, 095,546 inclusive of interest to the ZRA.