First Quantum Minerals says it does not expect the final value of the K76.5 billion tax claim against it by the Zambia Revenue Authority (ZRA) to be “material”.
The claim for Zambian kwacha 76.5bn – equivalent to $8bn and comprising $6bn in interest and $2bn in penalties on the $150m assessment claim on duties – relates to the import of capital items, consumables and spare parts for use at the Sentinel mine from January 2013 to December 2017.
In its March quarter results statement released on April 27 the company said, “a process for provision of all relevant documentation has been agreed between the company and the ZRA. Based on the work undertaken to date, the final value of the claim is not expected to be material.”
According to Chairman and CEO Philip Pascal, “the process is approximately two-thirds complete by value and has not identified any material errors. The company unequivocally refutes the assessment, is committed to transparency and continued engagement with the ZRA on the issue.”
First Quantum also revealed that it is owed substantial amounts in value-added tax (VAT) repayments from government.
The quarterly report noted that the “amount of VAT accrued by the company’s Zambian operations at March 31, 2018 was $368m of which $271m related to Kansanshi. Management continues to engage in regular discussions with the relevant government authorities and considers that the outstanding VAT claims are fully recoverable.”
First Quantum said it ended the March quarter with $810m of net unrestricted cash and cash equivalents in addition to $1.67bn of committed undrawn facilities.
“These, together with expected cash flows, support the company’s belief in its ability to meet current obligations as they become due,” the company stated.
You don’t announce to the world a tax issue that is in dispute. Kingsley Chanda should resign and replaced by a certified accountant.
@Chachima,
Not an Accountant naimwe. Do you have someone in mind? Replace him with Policy maker or lawyer.
A former minister can run ZRA better, with less emotions.
Nostradamus: So the qualification is former minister or a lawyer? Interesting. I have no one in mind but we need someone who means it when they say tax matters are confidential. ZRA of Kingsley Chanda announced publicly a tax matter that was still in dispute. I think this was unprofessional.
Lungu’s GRZ will waste it all anyway with $42m for firetucks ,some $1.2bn for dual carriageway,inflated cholera kit tenders and more.
Enka: Sound argument. Caleb Fundanga said as much not too long ago. Taxpayers always ask themselves why they should pay their hard-earned money to a corrupt govt that will misuse it. You can’t fault this argument in any normal country except in Zambia of course which has become too corrupt to be economically viable.
Just pay your taxes. You pay huge amounts in europe while in Zambia you are busy dodging even the change that you owe
Glencore threatened to leave the DRC and Kabila said yes they could go. …they are still there and agreed to pay new cobalt tariffs.
@Mbanje:
Here we go again, you are always telling lies! Telling fibs must be in your DNA. When did Kabila tell them to go? It is simply not true because Kabila is so personally dependent on Glencore that if they tell him to remove his pants and sit on ice he would do it without any question raised.
Whatever you smoke or inject yourself must be so powerful to make you start hallucinating uncontrollably!
Imwe ba ZRA, Just because Zambia’s debt is $8bn does not mean FQM owes you $8bn.
How could $150m generate $8bn all of a sudden. What sought of calculation is that.
I think your scales of money have lost their calibration. Do you know how much money $8bn is?.
If I were the head of state, people bringing such lies to me would face consequences.
@4 Chitapankwa, Could you please read the article again and see how they arrived at that sum? It is not imaginary,even FQM has not said that someone dreamed the figures but it is a question of gaps in documentation. The OWING PRINCIPLE AMOUNT,SEVERE PENALTIES, all COMPOUNDED AT OUR HIGH INTEREST RATES can balloon mere hundreds of $ to billions!!
@Chitapankwa,
Ulimbwa sana iwe you know that form today.
Zambias worst president , corruption at its highest , tribal divisions at their highest , debt at its highest, taxation at its highest , political presecutions at their highest ….
1) He’s worst president because he’s beaten your Horrible Hyena twice. 2 Tribal division have been brought in by Horrible Hyena by using Tongas to despise other tribes. 3 So called political persecutions are self inflicted. .no government can allow lawlessness 4 Debt…China owes 1/4 of the world debt. …money borrowed is for development but your propaganda wants to make it look like the money has been stolen. ..that’s how you lost the elections except in Dundumwenze Republic.
All countries have taxes that’s why people hide their earnings in offshore accounts. Apple has been slapped with bill for taxes in taxes by EU. For your information part of the reason why ZCCM collapsed is that it used to meet all your tax obligations. 99% of the taxes we’re now paying are not new. They are part of our laws except that government looked the other way because ZCCM was able to cover up for us. Don’t be clever, be intelligent.
Hehehe hehe ndanji
HH has been participating and losing elections for the past 20 years yet only when the corrupt theif lungu appears do we have..
Highest corruption
Highest political procecussions and violence
Highest debt
Highest taxes.
That corruption you talk about has always been alleged since independence. Lungu will one day leave office and then you’ll have a chance to prove it. By the way two of the ministers who have left government have accused Lungu of corruption and yet they are billionaires. ..how did they make those millions?
Whether corruption has been there or not the fact remains corruption is now at its highest in zambias history since lungu came to power….
Tax evasion and avoidance is a very serious matter. Just ask the same country where these investors come from and you will stop supporting Ichilema. ZRA is just doing its job like any other government agencies.
Malinso to some people it’s okay as long as the government in office is not from their party. Patriotism doesn’t end at supporting one’s preferred political party. Patriotism crosses party lines….when action threatens our nation all of us must defend the country. Every Zambian must take interest in this issue in the positive way.
Patronisim is indded a great feeling and an honour to perform . But this only possible where people are treated fairly. When people are given hope of being in a democratic society they assume they will be free to chose or be chosen in elections that come with a democratic country.
But what we have under lungu is the height of political violence and cheating, without which an election loss is pallatable.
People feeling cheated by those holding instruments of power see acts of patronising as rewarding the perpertratores of the political violence , in this case lungu.
Why should people be patriotic and lungu to gain more from the unity of the country this can bring and only for lungu to oversee their brutal suppression of democratic freedoms ?
Malinso: To you every ECL critic is HH’s supporter. It’s a lazy argument that cannot be accepted in any elementary logic class. Mulongoti and Siwale are presidents of their own political parties but HH still gets blamed for what they have done. There are other political players in Zambia. Kabimba, Hamududu, Chipimo, Nawakwi, Sakala, Tembo, Banda, etc. Why are they not leading the second-biggest party in Zambia since they are not tribalists? Anyway, You know nothing about how KK and UNIP sowed the seeds of today’s division. KK created fashionable and unfashionable tribes (languages) without mentioning it to Zambians.
Amassing and running like HaHH.