The Zambia Revenue Authority today conducted searches on the Copperbelt at Reddy Logistics and Mash Rock Mining Limited after unearthing a suspected and sophisticated tax evasion scheme involving the two respective companies and their associates.
Mash Rock Mining Limited is involved in mining activities within Zambia but warehouses locally mined Copper concentrates in the Reddy Logistics bonded warehouse purporting that the same is imported from the Democratic Republic of Congo (DRC) via Lonshi Border point when not. Later, the company processes direct bonding Customs declarations and the material is exported from Reddy Logistics bonded warehouse without paying Mineral Royalty and other related taxes.
It is worth noting that imported Copper does not attract Mineral Royalty and Mash Rock Mining Limited is suspected to have been misclassifying locally procured Copper as imported in order to avoid payment of Mineral Royalty with an estimated value of K82.6 million.
A check in the ZRA Customs ASYCUDA system revealed that Mash Rock Mining Limited has never imported any Copper ore from DRC via Lonshi border as indicated on direct Customs bonding Bill of Entries but procures the same locally. This scheme has been going on for at least three years.
The Zambia Revenue Authority would to urge all taxpayers that tax compliance is paramount in steering the economy as government needs the revenue for developmental projects. All taxpayers are therefore encouraged to declare and pay correct taxes. The Authority will not hesitate to prosecute and impose heavy penalties on tax evaders.
Zambia Revenue Authority