Category: Zambia

Is Ireland making unfair tax deals with developing countries?

A new report says little has changed after a number of global tax scandals… Ireland is entering unfair tax deals with developing countries according to a new report on ‘sweetheart deals’ in the EU. Of the 18 countries in the study, Ireland is found to have on average “introduced the...

Tanzania: Managing Tax Risks – Double Tax Treaties and Implications

Can tax treaty provisions override domestic law?In our last article we defined double taxation as an exposure to tax more than once on the same profit or income. We also highlighted the two types of double taxation i.e. economic double taxation and juridical double taxation and also noted that a...

Tanzania: Managing Tax Risks – Double Tax Treaties and Implications to Undertakings of Multinationals

The term double taxation refers to an exposure to tax more than once on the same profit or income. There are two types of double taxation i.e. economic double taxation and juridical double taxation. Economic double taxation is broad and occurs in a situation where an amount of income is...

Retrospectiva2015: Angolan diplomacy in the context of diversification of the economy

Luanda – Throughout the year just ended, as in the previous, the country’s economy “found himself grappling” with a major setback if they can be considered, due to the continued drop in oil prices, which is in the house $ 37 a barrel, far from the historic $ 122 value,...

ATAF pushes for scrapping of double taxation

THE African Tax Administration Forum (ATAF) has come up with a draft document on avoidance of double taxation and prevention of fiscal evasion within the continent. The Zimbabwe Revenue Authority (Zimra), a member of ATAF, has said avoidance of taxation and prevention of fiscal evasion was with respect to taxes...

GOVT TO PAY OUTSTANDING $300M TO PTA BANK

By SYLVESTER MWALE – THE Government has resolved to liquidate the outstanding US$300 million owed to Eastern and Southern African Trade and Development (PTA) Bank accumulated through petroleum importation. The arrears would be dismantled in four installments within a period of one year. Chief Government Spokesperson Chishimba Kambwili said in...

East Africa: New Reporting Code for Mncs Could Save Africa $35b

East African countries expect to collect more revenue under a new code drawn, by the world’s richest economies to stop foreign multinationals from dodging taxes in host countries. The new code — Base Erosion and Profit Shifting (BEPS) — adopted by G20 at its meeting in Turkey two weeks ago,...

Kenya and South Africa tax deal takes effect in January

The Kenya-South Africa double taxation agreement comes into force from January 1. An announcement in the November 19, South African government gazette says the agreement applies for taxes withheld at source. “A resident of Kenya will not be taxed on any South African business profits, unless it carries on business...

CURB TAX AVOIDANCE, SAYS ACTION AID

AFRICA needs to take a leading role in coming up with ways of combating tax avoidance and other illicit financial flows (IFFs) because the continent is losing a lot of resources through the scourge. Action Aid Zambia (AAZ) country director Pamela Chisanga said Africa should not wait for developed countries...

Kenya: ‘Kenya Losing Billions to Tax Havens’

The government has been accused of opening a loophole that allows super rich individuals and multinational companies to avoid taxes. The Tax Justice Network (TJN), a lobby group, has sued the government over agreements, which it says are robbing Kenya of the ability to raise revenues domestically, driving the country...

Ireland’s Finance Bill 2015 – key changes for international companies and financial institutions

Following the recent Irish budget statement (the “Budget”), the Finance Bill 2015 (the “Bill”) has been published and it implements the changes announced by the Irish Minister for Finance (the “Minister”). The Bill includes additional detail on: the new knowledge development box (“KDB”); and Ireland’s implementation of country by country...

Illicit flows worry ZRA

Zambia Revenue Authority-ZRA- Commissioner General Berlin Msiska says Africa needs to work together to address illegal Financial Flows. Mr Msiska says international cooperation is required because illegal financial flows affect all regions of the continent. He says African Tax administrations can achieve a more effective and efficient relationship through initiatives...

UK-Zambia double taxation agreement implemeted

The Britain has commended the Zambian government for implementing the UK-Zambia double taxation agreement. British High Commissioner to Zambia James Thornton said the agreement will help promote and foster business linkages between British and Zambia companies. In a press statement issued to ZANIS in Lusaka today, Mr. Thornton said the...

UK-Zambia double taxation agreement implemeted

The Britain has commended the Zambian government for implementing the UK-Zambia double taxation agreement. British High Commissioner to Zambia James Thornton said the agreement will help promote and foster business linkages between British and Zambia companies. In a press statement issued to ZANIS in Lusaka today, Mr. Thornton said the...

Netherlands Revises Treaties To Support BEPS Work

The Government of Netherlands has successfully negotiated the inclusion of anti-abuse provisions, aimed at combating cross-border tax avoidance, in tax treaties with Ethiopia, Ghana, Kenya, Malawi, and Zambia. At present, talks are being held with another seven countries and new agreements with several other countries are expected to be concluded...

ZRA grants tax deferment

Zambia Revenue Authority -ZRA- Commissioner General Berlin Msiska says the authority has granted tax deferment to some mining firms following cash flow challenges in the sector. Mr. Msiska says the deferment was given after the said firms applied because of challenges facing the sector and was granted in accordance with...

G24: In defense of emerging markets, developing countries

Cabinet has approved the Income Tax (Amendment) Bill of 2015, which seeks to implement the proposed changes to the mining tax regime and increase corporate income tax for mining operations from zero percent to 30 percent. Acting chief Government spokesperson Ngosa Simbyakula told journalists shortly after a Cabinet meeting yesterday...

Where is tax due?

Robert Maas,tax consultant at Carter Backer Winter was struck by April’s economia essay in which Diarmid O’Sullivan – an advisor at ActionAid UK – set out ActionAid’s five-point plan to tackle tax avoidance The article’s first point starts by demanding that “British tax rates do not incentivise tax avoidance by...

ZRA must optimise tax collection

THE issue of tax evasion is a concern for various Governments around the world. Tax authorities continue to face challenges from both local businesses and multinational corporations. In Zambia has the challenge has been to ensure that traders, local manufacturers and multinationals pay taxes due to the treasury. The situation...

Mining tax to affect deficit budget

KELLY NJOMBO, Lusaka THE Jesuit Centre for Theological Reflection (JCTR) says Government’s discussion to approve changes to the mineral royalty tax regime will result in the increase in primary budget deficit and possible limiting of expenditure. JCTR says the threat of job losses, placing the mines under care and maintenance...

Govt establishes debt management office

NATIONAL debt will soon come under effective and professional control, thanks to the national debt management office whose establishment is reportedly in the final stages, the national assembly heard on Friday. Deputy Finance Minister Mwigulu Nchemba under the envisaged office, the national debt will be effectively, efficiently and closely monitored...

EU bank breaches own rules in Glencore Zambia tax dodging investigation

The European Investment Bank, which gives loans and grants using taxpayers’ money, acted wrongly when it refused to disclose details of alleged tax evasion by mining giant Glencore, the EU’s watchdog has ruled. The EIB failed to disclose the results of its own investigation into the allegations surrounding a mining...

Tax and investment protection trends in Africa in 2014 and predictions for 2015

In the African tax sphere, the trend remains for headline tax rates to continue to remain stable or decrease. Withholding tax rates have generally remained stable, although the experience of Dentons and our clients is that African tax authorities are requiring tax to be withheld from payments that have not...

Mining Firms Urge Cuts In Zambia’s New Royalty Rates

The increased mining tax framework included in Zambia’s 2015 Budget earlier this month has been subject to criticism as, according to the Chamber of Mines of Zambia (CMZ), it will reduce the country’s attraction for mining investment and reduce employment. In his budget speech, Zambian Finance Minister Alexander Chikwanda proposed...

Glencore report: European Investment Bank must drag its secrets into the light

Reasons given by the bank for refusing to publish findings of an investigation into alleged tax evasion remain unconvincing When commodities giant Glencore publishes its half-yearly report on Wednesday, it is unlikely to mention what may be a significant victory for the firm. This relates to an investigation into allegations...

Zambia: Mines’ refunds of tax held back

Zambia was withholding $600 million (R6.3 billion) in VAT refunds owed to copper mining companies and would repay it only when they produced import certificates from destination countries, Mining Minister Christopher Yaluma said yesterday. The government started last year to enforce the 2008 requirement intended to curb tax avoidance. However,...

Zambia reviewing tax treaty with Netherlands

ZAMBIA is reviewing its tax treaty with the Netherlands and Ireland to allow the incorporation of anti-abuse clauses where necessary, a senior government official said.The move, according to tax justice advocates, marks a turning point for Zambia, which has been a key victim to tax avoidance by multinational corporations that...