And the authority says 2016 has been a tough year for the revenue collection body for various reasons.
ZRA Commissioner General Kingsley Chanda explains that among the reasons were the changes in the macroeconomic environment.
He notes that the authority had projections in terms of the exchange rate, the copper prices among others but that all the economic parameters were not as projected.
Mr. Chanda says due to the decline in copper prices, the mining companies who are the biggest tax contributors declared loses and thereby affecting the performance of the authority in terms of revenue collections.
Mr. Chanda adds that the authority also faced challenges in terms of enforcement such as corruption, smuggling among other challenges.
He also states that the 90% of not meeting the initial target set by parliament were reasons outside ZRA’s control.
are these loses these mines declare verified by ZRA or we just take their word for it…
What you collect is irrelevant to the masses, what matters is what you will do with that K1bn for the country
Thanks
BB2014
Fire him. In soccer there are no excuses, coaches get fired.
These are just tactics these mining companies use to avoid paying taxes. This is ridiculous. Does the ZRA investigate their claims fully? And do they have competent auditors to check these companies’ claims? After watching , “Stealing Africa–Why Poverty?” on YouTube, I’m extremely skeptical about the way these mining companies operate in Zambia. GO to YouTube and see for yourself. More often than not, they do not even follow the operating regulations, as we saw recently where they dumped poisonous waste in Kafue River, polluting the river and the water that people use. And this wasn’t the first time. They’ve done it before, since they see that no one really cares, or holds them accountable. It’s incredibly shameful that these companies do not pay taxes as they’re supposed to…
(Continuedt)…This is nothing but a modern plundering of our natural resources, while our fo0lish leaders watch and do nothing about it. If it was in any other country where there are competent people to hold them accountable, they would be paying their dues faithfully. But in Zambia what they do is come up with all kinds of excuses, just to avoid paying taxes while, in the meantime, they’re making billions of dollars in profits.
ZRA has currently no capacity to effectively collect taxes, royalties and other fiscal penalties from the mining companies because ZRA needs to address transfer pricing and the diversion of profits from Zambia by multinational corporations, which own the copper mines. This high profile work must attract a high level of scrutiny from the press, Office of the Auditor General and Parliamentary Public Accounts Committee. ZRA must recruit transfer pricing specialists/ economists with a flair for developing innovative ideas and solutions, who can work in collaboration with international partners to tackle the most complex and challenging transfer pricing and diverted profits risks, and bring such cases to fast resolution.
Such officers would offer a unique chance to contribute to the…
Zambia is progressing very little in its tax collection. The country is losing as much as $2 billion (even at very low taxation thresholds of 2% royalties) annually to tax avoidance, with the mining industry the biggest culprit and only one or two mining operations actually declaring profits. The other mines for one reason or another, some genuine, some not, are always making losses – most of it is due to transfer pricing or tax avoidance. There is a clear lack of capacity at ZRA to collect these taxes – with no one having expertise in tax avoidance, pricing transfer and off-shore banking schemes of copper mining companies operating in Zambia. Just merely changing the top leadership of ZRA will not solve this problem. It requires clear, visioned leadership with improved current tax…
Failures. And yet busy abusing independent media like the post.
Is he the right guy at the helm of ZRA? Didnt the late MCS rubbish his Commission of Enquiry report on ZRA which he had chaired? He is now in the press every time to give the impression that he is performing better than his predecessor, sooner than later your past will catch up with you.
Let us not pretend that the post has not been an Inda on the Zambian populace. We need better independent media.
There is no capacity at ZRA for complex auditing of the multinational mining companies. For example,
ZRA lacks Transfer Pricing Specialists with significant experience of transfer pricing work in industry or practice, with an ability to lead enquiry work on the most complex and cutting-edge cases, and bring such cases to fast resolution. These would apply a multidisciplinary approach to enquiry work and lead and work alongside economists, accountants and tax specialists in identifying and investigating key transfer pricing and diverted profits risks. UK Customs and Excise has such people in its employment and ZRA can learn from them.
Just changing the CG will not solve anything. ZRA needs to be current iin many areas.
It is a lie! The tax collectors have become more shrewd. They are sharing with boma! We know what goes on in there but the bottom line is when you make the cost of doing business very expensive, business activity goes down and companies move their business to other countries like what Trade Kings has done by moving most of its operations to Tanzania and South Africa.
It is a sign that the pond has dried up! The little left is for those with long fingers!
ZRA owes the mines K2.4 billion in VAT Refunds. So on a Net Basis the govt is affecting the Cashflows of these mines. On what basis does the Minister of Mines,Mr Yaluma act like a debt collector to force the Mines to pay their contractors and suppliers? The govt’s Role on the Mines should be limited to formulating and overseeing Mining Policies. The govt should leave the Mining Companies to manage the Operations of their mines on a day to day basis without undue interference from the mines.
But they will still collect their 13th payslip!!
If 90% of the reasons for failure to meet target collection are outside of ZRA control, then Mr. Chanda you are in a wrong job. You have to resign
Zambia Rotten Authority has no capacity to monitor mines revenue. Just admit they are smarter with their transfer pricing. And how can their VAT claims be higher than what they should be paying. It is common sssense the mines cheat on us. They claim.VAT
Mwebekala chalo how do you envision success in anything when strategic positions are either held by political party clones or friends? Look here all odds are working against us because we lack the basic tenets of an organised society. We have thrown out people who work.. any hardworker is an enemy of the party and its government. The whole system succumbs to political party bullying and all incomes have to go to friends of the party. So ZRA am simply saying that not until political interference stops you will continue to struggle to collect revenues.
What does Zambias taxes and other income to do with SA? We can’t resolve our own problems yet try to do so with other countries.
What are you ranting about?
Transfer pricing…hmmmmm. The comments on transfer pricing are quite interesting. But doesn’t anyone @ zra understand this little game called transfer pricing?