BY MWAMBA PENI II
This think piece is premised on nothing but the expression of my academic freedom. The contrary is a product of your own imagination.
OBJECTIVES OF COMPANY SEIZURE BY ZRA
The first objective of the seizure Act is to protect Government revenue by taking charge of assets with the view that the company in question pays during that period. In the event that a company fails to settle it’s liabilities, ZRA is empowered by law to sell those assets. A case in point is when Zambezi Oil Transport failed to settle it’s tax liabilities, it management decided to go into liquidation as a way out. In the end, Government revenue was safeguarded following the auctioning of the seized assets.
The second object of seizing the company with tax liabilities is to compel the tax payer to pay the taxes so that they continue in business. During the period of first demand, as the case is now with the Post Newspaper, ZRA is even empowered to seize the newspapers being produced elsewhere moreso to check if there is some hidden printing centre belonging to the Post.
In the event that the seized assets do not amount to tax liabilities, ZRA can issue a final demand and if they fail to pay during the stated time, the directors and shareholders can be taken to court. The penalty for this is:
Jail sentence of up to 5 years imprisonment with hard labour
Paying back the money coupled with five years imprisonment.
Has ZRA closed the Post Newspaper? The answer is NO. They are just protecting Government revenue by seizing it’s properties and if they pay, they will be left alone to operate.