{"id":4757,"date":"2025-04-03T16:49:42","date_gmt":"2025-04-03T14:49:42","guid":{"rendered":"https:\/\/www.npa.gov.zm\/?p=4757"},"modified":"2025-04-03T16:49:46","modified_gmt":"2025-04-03T14:49:46","slug":"high-court-slaps-pingani-auto-services-with-k79-million-fine-in-landmark-tax-evasion-case","status":"publish","type":"post","link":"https:\/\/www.npa.gov.zm\/index.php\/2025\/04\/03\/high-court-slaps-pingani-auto-services-with-k79-million-fine-in-landmark-tax-evasion-case\/","title":{"rendered":"High court slaps pingani auto services with k79 million fine in landmark tax evasion case"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The National Prosecution Authority (NPA) welcomes the recent judgment of the High Court \u2013 Economic and Financial Crimes Division, in the matter of Pingani Auto Services Ltd v. The People, which reaffirmed the conviction and sentencing of the appellant for multiple counts of tax evasion and submission of false returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 23rd February 2023, the Subordinate Court sitting in Kitwe, under Cause No. RM\/253\/22, convicted Pingani Auto Services Ltd on 11 counts of tax evasion contrary to Sections 16, 19(1), 20(1), and 44(1) of the Value Added Tax (VAT) Act, as well as 11 counts of making false returns in violation of Section 43 of the VAT Act. The appellant pleaded guilty to all 22 counts and was sentenced to pay a cumulative fine of K89, 335,442.37.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dissatisfied with the severity of the sentence, the appellant lodged an appeal, arguing that being a first offender and having pleaded guilty, it was deserving of a more lenient sentence. The appellant further obtained a stay of execution pending the outcome of the appeal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 28th March 2025, the High Court \u2013 Economic and Financial Crimes Division, in Cause No. HPEF\/03\/2024, delivered its judgment, largely upholding the sentence but ruling that the Subordinate Court had erred in including interest in the fine. Consequently, the High Court recalculated the total amount payable as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>K79,069,142.72 for fraudulent tax evasion, in breach of Sections 44(1), 16, 19(1), and 20(1) of the VAT Act.<\/li>\n\n\n\n<li>K5,500 for submission of false returns, in breach of Section 43 of the VAT Act.<\/li>\n\n\n\n<li><strong>Total Fine: K79, 074,642.72, payable on or before 30th June 2025.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The judgment was delivered by Honourable Justice S.M. Wanjelani sitting with Honourable Justices P.K. Yangailo and I.M. Mabbolobbolo. The Court lamented that the conduct of the appellant and other such offenders prejudice the Government\u2019s ability to deliver the much needed public services such as quality health care, education, infrastructure and social security.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The prosecution of this case was led by State Advocates Nkumbu Kandyata and Nalukui Muyambango of the National Prosecution Authority. The NPA remains committed to ensuring accountability and the enforcement of financial laws to safeguard the economic interests of the nation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The outcome of this case serves as a strong reminder that tax compliance is a legal obligation and that fraudulent activities aimed at evading tax liabilities will be met with the full force of the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Prosecution Authority (NPA) welcomes the recent judgment of the High Court \u2013 Economic and Financial Crimes Division, in the matter of Pingani Auto Services Ltd v. The People, which reaffirmed the conviction and sentencing of the appellant for multiple counts of tax evasion and submission of false returns. On 23rd February 2023, the [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[8],"tags":[],"table_tags":[],"class_list":["post-4757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>High court slaps pingani auto services with k79 million fine in landmark tax evasion case - National Prosecution Authority<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.npa.gov.zm\/index.php\/2025\/04\/03\/high-court-slaps-pingani-auto-services-with-k79-million-fine-in-landmark-tax-evasion-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High court slaps pingani auto services with k79 million fine in landmark tax evasion case - National Prosecution Authority\" \/>\n<meta property=\"og:description\" content=\"The National Prosecution Authority (NPA) welcomes the recent judgment of the High Court \u2013 Economic and Financial Crimes Division, in the matter of Pingani Auto Services Ltd v. 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