Saturday, June 22, 2024

ZRA, FQM settle K76 billion tax bill disagreement

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ZRA Headquarters
ZRA Headquarters

The Zambia Revenue Authority has entered into a tax settlement with First Quantum over a K76.5 billion tax bill.

The tax dispute was over the assesement claim on duties at First Quantum’s Kalumbila Minerals.The tax settlement was entered into between ZRA and FQM last week.

In a statement, First Quantum Minerals said the tax issue with ZRA has since been closed.

“The amount agreed was in line with the company’s previously disclosed expectations and no further action is required,” the firm said.

ZRA in March last year slapped Kalumbila Minerals with a 76.5-billion kwacha tax bill ($7.6-billion) for unpaid duties on imported mining equipment, an assessment that First Quantum refuted.

But on July 24, 2019, Kalumbila Minerals reached a settlement with the ZRA with respect to the assessment claim on duties.

Meanwhile, First Quantum Minerals Ltd. says its earnings dropped 42 per cent in the second quarter from last year even as its copper production reached a record high.

The company, which reports in U.S. dollars, says it had net earnings of $78 million in the last quarter compared with $135 million for the same quarter last year.

It revealed that it produced 168,399 tonnes of copper in the quarter compared with 150,950 tonnes last year, and pulled in revenue of $939 million compared with $1.05 billion last year.

At its Kansanshi mine, production was impacted by the lower grades in the oxide ore circuit and lower recoveries in the oxide and mixed ore circuits slightly offset by higher throughput in all circuits.

It produced 58,634 tonnes of copper for the second quarter and there was a 28% increase in total gold production of 59,647 ounces from Q2 2018.

Production at its Sentinel mine declined by over 10%, to $1.55 per pound due to related efficiencies in labour and contractor costs, maintenance costs and foreign exchange.

13 COMMENTS

    • Ask how much has FQM paid these corrupt thieves or donated to PF coffers to close the case….this is why I like how Tanzanian President operates if it was in Zambia were investors were ripping them off nothing would have happened.

    • For much was the tax bill settled? Don’t you think that is an important detail that Zambians need to know? Why leave out such crucial information, or is this just laziness on the part of LT to find out?

    • This looks similar to those 48 flats without anyone claiming ownership while tenants pay rentals to a ghost!

  1. With the corrupt PF govt we knew that ZRA wont get any of that money not even 10% ..last time we heard that FQM were doing their own calculations now we hear that the matter has already been closed. Where is the transparency …dont be surprised to hear on social media that Lazy Lungu has already been paid. I bet you even that court case Kasolo was punishing for ZCCM has already been closed.

  2. Bitter Hakiende h and his cronies of under 5 members of an inherited kindergarden party now that is how business is done not trooping from court to court as if its a new found occupation. Or giving fake advise for a fee on how to ‘privatize’ national assets and then later crying foul after breast feeding from the ‘infestment advise’……these will be spared a hostile take over as they are compliant. Disputes have been discussed not by issuing statements in foreign newspapers or threating to fight until the last man standing falls when you have polluted kafubu river, refused to pay Zambian local suppliers, refused to revisit salaries all in the name of I own the business…sha…weldone the two parties now let us move on….

  3. The devil is in the details of the settlement.Is taxation suppose to operate like a blackbox devoid of transparency and accountability? Are we to suppose that even the non implementation of the sales tax is being negotiated by the mine owners and eventually to be shelved?

  4. FQM is a public limited company and the the tax amount they paid or percentage should be shown on their published income statements unless if in Zambia the firms are using a different accounting methods apart from GAAP and IFRS. It’s saddening how things are going on in Zambia. Are people only looking out for themselves or what?

  5. Why did they not give Post Newspapers similar opportunity to settle the tax bill? Answer: revenge, coming down like a tonne of bricks according to Jonathan mataware the man with 2 NRCs.

  6. What are the details of the settlement? ZRA collects money on behalf of the Zambian people, hence disclosure of how much has been paid to settle the tax claim must be made public, else the backstop is on PF 2021, Lungu in particular will pay heavily.

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