The Economic and Financial Crimes Court has ordered United Chemicals Zambia Limited (UCZ) to pay the Zambia Revenue Authority (ZRA) over K10.7 million in evaded taxes.
According to court proceedings, between 1st July 2022 and 31st March 2023 in Ndola, the company, in collusion with other unknown persons, submitted false declarations to ZRA. UCZ allegedly misrepresented that several containers of cooking oil had been exported from Zambia to Choice Services (Sarl) in the Democratic Republic of Congo, in contravention of the Customs and Excise Act.
ZRA Corporate Communications Manager, Oliver Nzala disclosed in a statement that it was further established that the company submitted falsified tax returns and statements declaring zero-rated sales amounting to over K19.1 million, resulting in a loss of government revenue in the form of Value Added Tax (VAT) amounting to more than K10.7 million.
Mr. Nzala added that when the matter came up for plea on 19th January 2026 before Honorable Tamara Kakusa sitting in the Economic and Financial Crimes Court in Ndola, the accused pleaded guilty to eight counts of furnishing false returns and statements.
He revealed that the court convicted the company and imposed a fine of K40,000, payable within 14 days from the date of conviction, with a warrant of distress to be issued in default. The court further ordered UCZ to pay the evaded VAT amounting to over K10.7 million and to compensate the State K400,000 for prosecution expenses, which has since been paid.
He has since urged all taxpayers to comply with tax laws and pay their fair share of taxes to avoid punitive enforcement measures, including prosecution and imprisonment.
Mr. Nzala has since appealed to members of the public to continue providing information on tax malpractices to help grow the revenue base and promote fair competition, reaffirming its commitment to curbing all forms of economic crimes.
