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Tougher tax evasion sanctions coming – Yamba

GOVERNMENT has proposed to stiffen sanctions for tax evasion in a bid to compel more firms to meet their tax obligations, Secretary to Treasury Fredson Yamba has said.
Mr Yamba said hardening sanctions is intended to enhance the disincentive for tax evasion and ensure that all economic actors recognise the negative effects of evading tax.
Mr Yamba said this in the proposed Green Paper on medium-term expenditure framework for 2015-2017.
“Government plans to enhance and mobilise domestic revenue by implementing effective policies and administrative measures,” he said.
Mr Yamba said Government would also set up multi-disciplinary task force to undertake spontaneous tax inspections to curb smuggling, illicit trade, under-declarations and corruption particularly at border points.
The taskforce, which will consist of security wings and the Ministry of Finance, will also curb other related tax malpractices.
He said the current investigative mechanism for tax fraud has proved to be ineffective and, therefore, this raises the need for more robust ways to curb such vices.
Mr Yamba said the creation of the structure would complement the efforts of the mobile compliance unit.
Government has also suggested to review and renegotiate avoidance of double taxation agreement to ensure that benefits of such agreements also accrue to Zambians.
This will be done by aligning them with the current Government policy and changing global trends.

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