Court reportedly convicts Spax Mining for tax evasion, company agrees to pay K4.5 million

Chingola-based small-scale mining firm Spax Mining Limited, owned by Kabaso Mulenga, has been convicted of tax evasion and agreed to pay K4,490,523.68 to the Zambia Revenue Authority (ZRA).

ZRA Corporate Communications Manager, Oliver Nzala, stated on Sunday in a statement that the conviction stemmed from fraudulent activities that led to the loss of government revenue in Value Added Tax (VAT).

Nzala explained that during a pre-trial conference on November 19, 2024, the accused invoked the Plea Negotiations Act No. 20 of 2010.

The state agreed to the application, provided the full VAT amount of K4,490,523.68 was paid, along with K100,000 to cover prosecution costs.

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The Economic and Financial Crimes Court reportedly convicted Spax Mining based on its admission of guilt and sentenced the company to a fine of K13,500, with a default penalty of six months’ simple imprisonment.

The court found that between January 1, 2022, and August 31, 2023, Spax Mining, in collusion with others, submitted false tax invoices from Wise Focus Mining Limited and Zamgem International Limited, claiming taxable supplies of ores and copper ores.

Nzala noted a rise in VAT fraud and tax evasion on the Copperbelt and across the country.

He emphasized that ZRA had intensified monitoring mechanisms to curb such practices.

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