ACTION AID ZAMBIA HAS CHALLENGED SABMILLER TO BE SPECIFIC IN ITS CRITIQUE TO THEIR REPORT WHICH POINTS OUT VERY SPECIFIC CRITICAL ISSUES IN SABMILLER’S TAX PAYING PRACTICES

ACTION AID ZAMBIA HAS CHALLENGED SABMILLER TO BE SPECIFIC IN ITS CRITIQUE TO THEIR REPORT WHICH POINTS OUT VERY SPECIFIC CRITICAL ISSUES IN SABMILLER’S TAX PAYING PRACTICES BY STATING THAT THE COMPANY HAS DISMISSED THE REPORT WITHOUT GIVING DETAILED AND FACTUAL INFORMATION THAT PROVES THE REPORT WRONG.

ACCORDING TO A COMMUNIQUÉ MADE AVAILABLE TO RADIO PHOENIX YESTERDAY ACTION AID ZAMBIA COUNTRY REPRESENTATIVE PAMELA CHISANGA SAYS THE REPORT IS VERY CLEAR ON THE FACT THAT SABMILLER IS DODGING TAXES AND NOT EVADING TAXES BY STRATEGICALLY EXPLOITING WEAKNESSES IN THE ZAMBIAN TAX SYSTEM TO ITS ADVANTAGE.

MRS. CHISANGA HAS STATED THAT SABMILLER CLAIMS IT IS NOT INVOLVED IN AGGRESSIVE TAX PLANNING HOWEVER IT USES 65SUBSIDIERIES TO DIVERT FUNDS FROM ONE SUBSIDIARY TO ANOTHER LIKE THE CASE OF THE ZAMBIAN SUBSIDIARIES’ HAVE TO PAY MANAGEMENT FEES AND ROYALTIES TO THE COMPANY’ SUBSIDIARIES IN NETHERLANDS.

SHE HAS TAKEN TO TASK SABMILLER TO EXPLAIN THOROUGHLY WHETHER IT IS NOT AGGRESSIVE TAX FOR THE ZAMBIAN BREWERIES TO PAY ROYALTIES ON THE SALES OF CASTLE LAGER, EAGLE AND CARLING BLACK LABEL, TWO COMPANIES WHICH ARE PURE AFRICAN BRANDS.

MRS. CHISANGA HAS EXPLAINED THAT ACTION AID SHARED THE FINDINGS FROM SABMILLER’S TAX PRACTICE IN GHANA WITH OFFICIALS AT THE GHANA REVENUE AUTHORITY AND ITS COMMISSIONER GENERAL, SAID THE RESEARCH FINDINGS SEEM TO BE BORNE OUT BY THE EXPERIENCE THAT IS A KNOW PRACTICE IN THE COUNTRY.

SHE SAYS THE ACTION AID RESEARCH WAS ALSO PEER-REVIEWED BY SENIOR OFFICIAL AT HER MAJESTY’S REVENUE AND CUSTOMS IN THE UK, WHO CONFIRMED THE FINDINGS AND THE GROUP’S EFFECTIVE TAX RATE FELL IN 2010, WHICH ITS ANNUAL REPORT ATTRIBUTES, AMONG OTHER THINGS TO ONGOING TAX EFFICIENCY MEASURES.

MRS. CHISANGA HAS STATED ACTION AID ZAMBIA IS VERY DISAPPOINTED TO SEE THE COMPANY USING INFLATED FIGURES TO MASK THE IMPACT OF ITS TAX DODGING.

MEANWHILE SABMILLER SAYS THE COMPANY’S TOTAL TAX DIRECTLY PAID TO GOVERNMENTS AMOUNTED TO JUST UNDER $7BILLION IN 2009 OF WHICH 77PERCENT WAS PAID IN DEVELOPING ECONOMIES BUT IN 2009 TO 2010 THE COMPANY INVESTED OVER $500MILLION IN AFRICA ALONE.

BUT ACTION AID ZAMBIA SAYS LESS THAN ONE TENTH OF THE $7BILLION TOTAL TAX CONTRIBUTION THAT THE COMPANY QUOTES WAS ACTUALLY TAXES INCURRED BY SABMILLER ITSELF OF WHICH THE BULK OF IT WAS EXERCISE DUTIES, WHICH ARE PAID BY CONSUMERS AND NOT BY THE COMPANY.

published by augustine