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Highlights

DGSM opens up Karamoja Regional Office; Fort Portal, Ntugamo, Tororo are next.

The Directorate of Geological Survey and Mines (DGSM) has opened a Regional Office for the Karamoja Region, a move aimed at bringing geological and mining services closer to the people of Karamoja Region. Based in Natumkathikou within Moroto town, the office will serve the other districts of Karamoja namely Amudat, Abim, Kabong, Nakapiripirit, Napak and Kotido. Its constructio... Read more

RIO Shells out $57mln for SIPA project in Kitgum- Pader Uganda

Mining giant Rio Tinto (ASX: RIO) has announced it will farm into Sipa Resources’ (ASX: SRI) Kitgum-Pader base metals project in northern Uganda. Rio will serve up US$57 million (A$75 million) in exploration funding and US$2 million in cash payments over up to 11 years as it takes a stake of up to 75% in Kitgum-Pader. The cash component of the joint venture deal will be... Read more

Mining, Agriculture and Pastoralism in Amudat

  Historically, mining is known to overide other existent econmic activities wherever minerals are discovered. Amudat District which is located in Karamoja region in Uganda with pastoralism as the main economic activity has in the recent past seen an increase in the number of liscence applications and mining activities in the district.   The Pokot however have ... Read more

ZRA uncovers a Mining tax scam worth 76.5 billion Kwacha

The Zambia Revenue (ZRA) has started the process of comprehensively auditing mining companies in all applicable tax types.       Last year, the amnesty on interest and penalties was announced to allow tax payers to clean up their tax accounts. Those with issues were expected to engage ZRA and have a waiver on interest and penalties. A post amnesty revie... Read more

The Zambia Revenue (ZRA) has started the process of comprehensively auditing mining companies in all applicable tax types.
 
zambia
 
 
Last year, the amnesty on interest and penalties was announced to allow tax payers to clean up their tax accounts. Those with issues were expected to engage ZRA and have a waiver on interest and penalties. A post amnesty review shows that only small and medium companies stepped forward and the Authority raised about 4.4 billion kwacha from the programme. Unfortunately, most large companies did not participate despite numerous reminders and extensions. 
 
We would like to assure the public that the amnesty programme was not a joke and our promise to deal with non-compliance is real. In line with this objective, the 2018 theme for  ZRA is “Rewarding compliant tax payers and punishing non-compliant tax payers to the maximum”. The Authority has therefore started detailed audits on all mining companies for compliance in all applicable tax types  in order to ensure all taxes due are collected.
 
The planned audits will cover the statutory period of 6 years to start with. However, if the findings will review a pattern of consistent, systematic, premeditated cheating (tax evasion), we shall criminalise the act and cover longer periods to achieve the intended objective.
 
For this reason we are announcing the preliminary assessment of K 76.5 billion (USD 7.7 billion) issued to a prominent mining company for misclassifying consumables and spare parts at importation for the last five years. The said items were declared as mining machinery (which attract customs duty at zero percent) when in fact not. The applicable duty rate for the items ranges from 15 to 25 percent. 
 
The Authority is currently ascertaining the involvement of the clearing agent, who, if found to have been actively involved, will face appropriate sanctions that may include complete revocation of the trading licence.
 
We have since notified both the mining and the clearing agent of this unacceptable act of cheating.
 
We are taking this case very seriously and we shall pursue all available options to the Authority to recover all taxes on behalf of the Zambian people.
 
We also wish to announce that starting 26th March 2018, our investigation teams and auditors will commence the audit of all mining firms in Zambia. We are, therefore, appealing to all other companies and players in the Mining Sector that may have been involved in illicit tax activities to make self-disclosure before we discover them. This will help them minimise their exposure to penalties and interests.
 
To those that are evading tax or contemplating doing dubious activities, our warning to them is to stop immediately and start complying. The Authority will definitely catch up with them and take all measures to collect taxes, penalties and interest due. 
 
Issued by: Topsy Sikalinda
Corporate Communications Manager
Zambia Revenue Authority.