ZRA clears Kagem Mining of tax evasion allegations

Kagem Mining Limited has been cleared of wrongdoing following recent tax investigations by the Zambian Revenue Authority, its parent company Gemfields has announced.

The investigations commenced on August 16, 2018 when the ZRA served two search warrants during a raid on Kagem mining. The search warrants were served on Kagem and another company – Limpopo Polygraphs (LPCC) – a South African firm that conducts polygraph testing at Kagem.

The search warrants authorised the ZRA to take wide-ranging documents and files including those allegedly used by Kagem Mining Ltd / Limpopo Polygraphs CC to evade the payment of value added tax, income tax, withholding tax and other taxes”.

The ZRA has now advised Kagem that the matters it had been looking into have been suitably addressed, adding that there were no findings of wrongdoing or late payment by either Kagem or Limpopo and as such no penalties were levied.

The ZRA has confirmed that their investigation into these matters is now closed.