(LUSAKA TIMES) ActionAid Zambia welcomes Government’s move to cancel the Double Tax Agreement with Mauritius
COMMENT - A good move towards actually taxing the foreign corporations that are dragging Zambia's copper out of the ground without paying for it.(LUSAKA TIMES) ActionAid Zambia welcomes Government’s move to cancel the Double Tax Agreement with Mauritius.
June 26, 2020
Economy ActionAid Zambia welcomes Government’s move to cancel the Double Tax Agreement with...
ActionAid Zambia has welcomed the government’s move to cancel the Double Tax Agreement with Mauritius.
Action Aid Zambia Country Director Nalucha Ziba said her Organisation has for a long time been campaigning for cancellation and re-negotiation of problematic DTAs Zambia has with different countries.
She said a Double Tax Agreement or tax treaty is a legally binding agreement between states, which governs the taxation of cross- border activities; namely investments by a resident of one state in the other state, and vice versa.
Mrs Ziba said Zambia has signed DTAs with different countries such as Germany, Ireland, Norway, Sweden, Mauritius (now cancelled) to mention but a few which spell out how companies investing in a country that Zambia has signed a DTA with their country of origin should be taxed.
She has explained that if for instance, if Zambia has a tax treaty with Mauritius, therefore a Multinational Company originating from Mauritius and operating in Zambia will utilize the tax provisions in the DTA between Zambia and Mauritius.
Mrs Ziba however said that in the recent times, Tax Treaties have not only been found to be unbalanced but also a source of tax evasion by most multinational companies, denying the host countries the much-needed revenue.
“For example, some DTAs provides for as low as 0-7 percent tax rate while others have no or weaker anti-abuse provisions”, she added adding that for some time now ActionAid has been calling for revision and/or cancellation of regressive DTAs like the now cancelled Zambia and Mauritius DTA.
She said the DTA between Zambia and Mauritius provided for 0 Percent Withholding Tax on technical fees paid for technical services.
Mrs Ziba said with this provision a Mauritius based Multinational Company, would take advantage of such provisions and not pay any WHT on technical services which is currently capped at 15 percent.
“For example, if this company engaged a sister company from Mauritius to provide technical services at a cost of USD100 million. This company when making this payment (USD100 million) to a sister company will not deduct any WHT. This implies that the entire USD100 million is untaxed. On the Contrarily, if the DTA provided for 15 Percent WHT on technical fees then USD 15 million would be deducted as Withholding Tax and remitted to Zambia Revenue Authority (ZRA)”, Mrs Ziba said.
She said Action Aid conducted a study titled “Sweet Nothings” which showed how Associated British Foods operating in Zambia as Zambia Sugar Company took advantage of the international tax agreement between Zambia and Ireland to avoid large tax payments.
Mrs Ziba said Zambia Sugar Company paid over US$47.6 million equivalent to about K209 billion, for management services and purchases to a fellow subsidiary called “Illovo Sugar Ireland” between 2007 to 2012.
She however said that the international tax agreement between Zambia and Ireland (before negotiation) exempted payment of Withholding Tax (WHT) for management
or consultancy services.
She said by channelling this money (USD 47.6million) through their Irish subsidiary, Zambia Sugar avoided paying an equivalent of US$7.4 million between 2007 to 2012.
“It is against this background that we commend the government for the position taken and we wish to encourage government to take a similar position over other unbalanced DTAs”, she added.
She has urged the government to ensure that an impact assessment/cost benefit analysis is done before they are signed and every five years thereafter.
Mrs Ziba said they should not follow the OECD model treaty but develop their own model adding that the government should negotiate for favorable and/or fair DTA’s Withholding Tax rates (10%-15%) which will not only promote foreign direct investment but also ensure that government collects adequate tax revenue.
Shd said all treaties should be negotiated transparently, and draft versions made available to the public prior to signature.
[Read 564 times, 564 reads today]
Related Posts:
Labels: ACTION AID, ACTION AID ZAMBIA, ACTIONAID, NALUCHE ZIBA, TAX EVASION, TAXATION, TRANSFER PRICING
posted by MrK @ 9:49 AM
1 Comments:
CUSTOM AUCTION IS UP AGAIN AND GRANTING ALLAFRICA THE PRIVILEGE TO OWN ANY VEHICLE AT AFFORDABLE PRICE CALL OR WHATSAPP FOR ANY OTHER PRODUCT'S AND YEAR
SOME CAR LIST BELOW.
Golf 5K ZWM __ 30K ZWM
2010 Corolla Sport 20K ZWM
2012 Corolla Sport 40K ZWM
Awoof 2009 Lexus RX350 35K ZWM
2013 Camry XLE - Back Vent AC - V4 - 40K ZWM
2001 Camry 5K ZWM
2003 Camry 20K ZWM
2005 Camry LE .20K ZWM
2015 Matrix 40K ZWM
2008 Toyota Camry 20K ZWM
2012 Camry Sport 30K ZWM
2005 mitsubishi galant 10K ZWM
2015 mitsubishi outlander 30K ZWM
2018 mitsubishi outlander sport 40K ZWM
Mitsubishi 3K GHS TO 90K ZWM
2014 Rav4 Sport 25K ZWM
2016 Honda pilot EX 30K ZWM
2012 Benz E320 25K ZWM
1999 Sienna 8K ZWM
2006 Lexus RX300 20K ZWM
Pegeout 406 Manual AC 10K ZWM
2012 Honda CRV EX 30K ZWM
2O15 Honda Accord 40K ZWM
2011 Corolla XLE - Alloy + Formica 30K ZWM
2015 Toyota LandCruiser 40K ZWM
2010 Corolla LE 30K ZWM
2016 RX350 45K ZWM with Mouse
2018 RX350 55K ZWM with mouse
202O Toyota Tacoma 90K ZWM
2013 Avalon Thumbstart 30K ZWM
2012 Avalon key 20K ZWM
2018 Avalon Thumbstart 40K ZWM
2020 Avalon Thumbstart 90K ZWM
2012 Pointiac Vibes 30K ZWM
2011 Benz E230 30K ZWM
2017 Sienna CE 30K ZWM
2016 Sienna XLE 30K ZWM
2016 Corolla Sport 35K ZWM
2010 Camry LE 25K ZWM
2011 Camry LE 25K ZWM
2018 Lexus GX460 55K ZWM
2015 Lexus ES350 .40K ZWM
2010 Corolla Manual 20K ZWM
2018 Acura MDX 45K ZWM
2015 Audi 30K ZWM
2018 Audi 50K ZWM
2020 Audi 90k ZWM
2018 Benz C300 40K ZWM
2017 Benz GL450 50, 000 ZWM
2018 Benz GL550 55K ZWM
OI8 Benz GLS 40K ZWM
2O2O Benz Gls 90,000 ZWM
2006 Rav4 .20K ZWM
Awoof 2008 Pilot 20K ZWM
2008 Pilot 20K ZWM EX
2009 Highlander sport 25K ZWM
2018 Highlander Limited 45K ZWM
2012 Rav4 EX Rev Camera + Thumbstart@ 30k ZWM
2008 Honda Accord 25K ZWM
2012 Camry XLE 35K ZWM V4
2013 Honda Accord 35K ZWM
2015 Honda Accord 40K ZWM
2013 Matrix 35K ZWM
2012 Honda CRV 25K ZWM
2003 Honda Element 20k ZWM
2008 Camry 30K ZWM
2016 Honda Ridgeline 50K ZWM
2014 Camry LE 50K ZWM
2013 Ford Edge SEL 30K ZWM
2014 Ford Edge SEL .30K ZWM
Fresh like toks 2013 Benz E200 40K ZWM
2012 RAV4 30K ZWM
2014 Kia Cerato 20K ZWM
2015 Benz GLK350 30K ZWM
2015 Range Rover evogue 90K ZWM
2OI8 Range Rover evogue 100K ZWM
2O2O Range Rover evogue 150K ZWM
2OI8 Range Rover sports 100K ZWM
2006 Quest 30K ZWM
2008 Kia Rio 30K ZWM
2012 TOYOTA Camry Xle 30K ZWM
2O12 TOYOTA Venza .40K ZWM
2O22 LEXUS GX460-100K ZWM
2O14 TOYOTA Venza 40K ZWM
2010 TOYOTA VENZA 30K ZWM
2O18 TOYOTA Corolla 60K ZWM
2O2O TOYOTA LandCruiser 90K ZWM
2OI8 TOYOTA LandCruiser 80K ZWM
2015 TOYOTA LandCruiser 40k ZWM
2020 TOYOTA FJ CRUISER 100K ZWM
2025 TOYOTA FJ CRUISER 100K ZWM
2O2O TOYOTA Prado 90K ZWM
2OI8 TOYOTA Prado 50K ZWM
2O20 TOYOTA RAV4 90K ZWM
2O20 MERCEDES BENZ G-WAGON 300K ZWM
2025 MERCEDES BENZ G-WAGON 500k ZWM
2O21 TOYOTA Hilux 100k ZWM
2OI8 TOYOTA HILUX 90K ZWM
2015 TOYOTA HILUX 70K ZWM
2O18 TOYOTA Bus 60K ZWM
Tipper Head 100K ZWM
2018 BMW X6 50K ZWM
2O20 BMW X6 90K ZWM
2025 BMW X6 100K ZWM
2O20 BMW X5 80K ZWM
2025 BMW X5 90K ZWM
TOKUNBO CARS ABOVE �
CALL OR WHATSAPP FOR ANY OTHER PRODUCT'S AND YEAR'S......DISTANCE IS NOT A BARRIER ....SHIPPING 100% UPON ORDER .....INTERESTED BUYERS SHOULD CONTACT THE STATE AUCTIONEER.CUSTOM OFFICER GABRIEL ESHIEMOMOH VIA☎️ +2348067399090 ☎️ ...
Post a Comment
Subscribe to Post Comments [Atom]
<< Home