The Zambia Revenue Authority has disclosed that many taxpayers continue to be evasive when reporting to Customs and to Domestic Tax on comparable transactions.
In a statement, ZRA commissioner-general Kingsley Chanda revealed that results following the tax amnesty programme, which lapsed on June 30 this year, indicated that many taxpayers continued to be evasive when reporting to Customs and to Domestic Tax on comparable transactions.
According to Chanda, the ZRA ran a tax amnesty on interest and penalties arising from late or non-submission of returns and late or non-payment of tax liabilities on all domestic tax liabilities from April 24 to December 31 last year.
The Tax Amnesty exercise was intended to give an opportunity to taxpayers to declare all transactions that had not been reported and to resolve their tax indebtedness arising from interest and penalties.
It also offered taxpayers longer time-to-pay agreements until June 30 this year.
“Results so far indicate that many taxpayers continue to be evasive when reporting to Customs and to Domestic Tax on comparable transactions. We wish to inform taxpayers whose declarations will be flagged by the data matching system that they will receive a notification requesting them to provide an explanation for the identified variations within 14 days of the notification. Taxpayers are reminded that they are required by law to comply with this request and to provide any requested information and records,” Chanda disclosed in a press statement released, Tuesday.
He cautioned that taxpayers failing to oblige to the notifications will attract further penalties.
“Should a taxpayer fail to oblige with this request for information and records, ZRA shall proceed to amend the taxpayer’s tax assessments by making adjustments that may be deemed fit in accordance with the relevant provisions of the Income Tax Act, the Value Added Tax Act and the Customs and Excise Act. Furthermore, failure to provide the information and records so requested may result in incurring of fines or penalties in accordance with the aforementioned legislation,” warned Chanda.
“The Authority wishes to take this opportunity to encourage taxpayers to comply voluntarily on their tax obligations. However, taxpayers who choose to evade taxes will be identified and brought to account. Tax compliance is everyone’s responsibility.”