Big mining companies in Africa must brace themselves for increased audits
January 17, 2017
African countries are targeting the mining sector with audits based on suspicions that commodities are not being sold at arm’s-length prices.
Taxpayers who operate in the mining and resources industries in countries like Zambia and South Africa should expect scrutiny from the tax authorities in the near future, as new research reveals concerns about profit shifting and tax avoidance. The tax authority of Zambia, Africa’s largest producer of copper and cobalt, has announced it will step up its auditing of large mining multinationals to establish whether they have been compliant with the country’s tax and transfer pricing legislation. Companies like First Quantum Minerals, Gemfields and Equinox Minerals that have operations in the mineral-rich country may face the increased scrutiny.
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