Zambia auditor general confirms that officers are probbing SAB miller

AUDITOR GENERAL ANNA CHIFUNGULA HAS DISCLOSED THAT INVESTIGATIONS ARE UNDERWAY TO ESTABLISH THE REVELATIONS THAT SAB-MILLER AVOIDS PAYING BILLIONS OF KWACHA OF TAXES IN AFRICA EVERY YEAR AND IN ZAMBIA IN PARTICULAR.

ACCORDING TO ACTION AID REPORT CALLING TIME: WHY SAB MILLER SHOULD STOP DODGING TAXES IN AFRICA REVEALED IN NOVEMBER LAST YEAR HOW THE COMPANY USES A COMPLEX SYSTEM OF TAX HAVENS TO TAP PROFITS OUT OF SUBSIDIARIES IN ZAMBIA AND OTHER DEVELOPING COUNTRIES.

THE REPORT SHOWS THAT SAB MILLER IS DODGING AN ESTIMATED $31 MILLION OR CLOSE TO 146 BILLION KWACHA OF TAXES IN AFRICA AND INDIA EVERY YEAR.

AND TAX AUTHORITIES IN ZAMBIA AND FOUR OTHER COUNTRIES ARE TO INVESTIGATE GIANT BREWER SAB MILLER, WHICH IS THE WORLD’S BIGGEST BREWER.

THIS COMES AFTER AN ACTION AID REPORT WHICH REVEALED THAT THE MULTINATIONAL CORPORATION AVOIDS PAYING BILLIONS OF KWACHA OF TAXES IN AFRICA EVERY YEAR.
THE AFRICAN TAX ADMINISTRATION WILL COORDINATE THE GROUND BREAKING INVESTIGATIONS OF SAB MILLER’S TRANSFER PRICING STRATEGIES IN ZAMBIA, SOUTH AFRICA, GHANA, TANZANIA AND MAURITIUS.

SPEAKING  IN AN EXCLUSIVE INTERVIEW WITH RADIO PHOENIX IN LUSAKA AUDITOR GENERAL ANNA CHIFUNGULA SAID HER OFFICE IS WORKING IN COLLABORATION WITH NORWAY TO PROBE THE ALLEGATIONS.

AND ASKED  AS TO WHEN THE INVESTIGATIONS WILL BE CONCLUDED; MS CHIFUNGULA SAID HER OFFICERS WHO ARE ALREADY ON THE GROUND WILL BE DONE WITH THE PROBING BY JULY THIS YEAR.

SHE SAYS HER OFFICE IS LOOKING AT THE PAYMENTS THAT SAB-MILLER SHOULD HAVE BEEN PAYING TO THE  ZAMBIA REVENUE AUTHORITY IN THE PERIOD UNDER REVIEW.

BUT IN A STATEMENT AVAILED TO RADIO PHOENIX, SABMILLER REJECTED THE ALLEGATIONS MADE BY ACTIONAID IN ITS RECENT REPORT THAT SHOWS THAT SAB MILLER IS DODGING AN ESTIMATED $31 MILLION OR CLOSE TO 146 BILLION KWACHA OF TAXES IN AFRICA AND INDIA EVERY YEAR.
SABMILLER SAYS IT DOES NOT ENGAGE IN AGGRESSIVE TAX PLANNING IN ANY PART OF ITS OPERATIONS AND THE REPORT INCLUDES A NUMBER OF FLAWED AND INACCURATE ASSUMPTIONS.

THE COMPANY STATES THAT COMPLIANCE WITH TAX LAWS UNDERPINS ALL OF ITS CORPORATE GOVERNANCE PRACTICES AND THAT IT WILL ACTIVELY ENGAGE WITH REVENUE AUTHORITIES AND THAT THEY ARE TRANSPARENT WITHIN THEIR AFFAIRS.

THE STATEMENT SAID SABMILLER COMPANIES PAY A SIGNIFICANT LEVEL OF TAX AND THAT IN THE YEAR ENDED 31 MARCH 2010, THE GROUP REPORTED US$2,929 MILLION IN PRE-TAX PROFIT AND GROUP REVENUE OF US$26,350 MILLION.

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