Today, the Zambia Revenue Authority (ZRA) initiated a search operation at Tubombeshe Mining Limited’s premises in Lufwanyama, based on compelling allegations of non-disclosed gemstone operations and potential tax evasion.
The operation’s primary goal was to gather evidence related to the alleged non-disclosure of gemstone production and suspected illegal auctions by Tubombeshe Mining Limited. The ZRA investigative team, in collaboration with various stakeholders, conducted a comprehensive search to secure pertinent documentation and evidence.
The search yielded significant discoveries, pointing towards inconsistencies in the reported production and actual gemstone operations. Initial findings indicate the possibility of active gemstone extraction not accurately declared to the ZRA, contrary to the company’s filings of nominal or zero returns.
The collected evidence includes financial records, production logs, auction documentation, undercover operation reports, correspondence, and witness statements. These findings strongly suggest potential non-compliance with tax regulations and unauthorized gemstone auctions.
The ZRA is now engaged in further investigation and analysis of the evidence obtained during the search. These findings will be meticulously assessed to determine the extent of non-compliance and to consider potential legal actions in line with tax regulations and business practices.
And in a related search operation at Good Time steel, a company affiliated with Tubombeshe Mining Limited, the Zambia Revenue Authority discovered USD$250, 000 cash and K2.5million cash which has been seized and will be handed over to the Drug Enforcement Commission, (DEC).
To improve efficiency and compliance in the mineral value chain, the Zambia Revenue Authority (ZRA) working with the Ministry of Mines and Minerals Development, has developed a Gemstone Production Reporting and Export Permit Module which provides for online reporting of minerals. The module also provides for online processing of export permits for the Gemstone industry in Zambia.
The module which will soon be rolled out is part of Government’s resolve to ensure that there is transparency and accountability in the mineral value chain and will further improve efficiency in service delivery and reduce the cost of compliance by stakeholders in the Gemstone sector.
This module is in addition to the Base Metals reporting modules that were developed on the Mineral Output Statistical Evaluation System (MOSES) which was first rolled out under the Mineral Value Chain Monitoring Project (MVCMP).
The MOSES is a tool designed to facilitate online reporting of mineral production and export permit processing, thereby easing the detection of illicit trade practices in the mining industry.
The development of the Gemstone Production Reporting and Export Permit Module is expected to improve tax compliance among operators in the country’s Gemstone industry as well as increase the tax revenues for the national treasury. The development is also expected to help reduce mis-invoicing, under-declaration of exports and other trade-malpractices currently faced with some Gemstone mining operators.