ZRA tightens tax clearance rules to curb evasion, illicit flows

THE Zambia Revenue Authority has strengthened controls on issuing Tax Clearance Certificates in a bid to curb tax evasion and illicit financial flows. ZRA Manager-Corporate Communications Oliver Nzala said in a statement that some businesses register with PACRA and obtain a TPIN but do not register for applicable tax types, yet continue to operate commercially.

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THE Zambia Revenue Authority has strengthened controls on issuing Tax Clearance Certificates in a bid to curb tax evasion and illicit financial flows.

ZRA Manager-Corporate Communications Oliver Nzala said in a statement that some businesses register with PACRA and obtain a TPIN but do not register for applicable tax types, yet continue to operate commercially.

He said analysis of Suspicious Transaction Reports from the Financial Intelligence Centre showed some PACRA-registered entities with TPINs are involved in financial transactions without corresponding ZRA tax accounts, raising concerns of shell companies and tax evasion.

Going forward, a Tax Clearance Certificate will only be issued to businesses registered for relevant tax types and compliant with obligations. Businesses without correct tax types will be unable to obtain or maintain clearance.

ZRA said the measure will help identify unregistered businesses, reduce evasion, detect shell-company arrangements, and improve the integrity of the taxpayer register.

The Authority urged PACRA-registered businesses to review and regularize their tax status. The new controls apply to business TPINs only, not individuals holding TPINs in a personal capacity.

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