First Quantum Minerals says it does not expect the final value of K76.5 billion tax claim against it by the Zambia Revenue Authority to be material.

Written by on April 30, 2018

First Quantum Minerals says it does not expect the final value of K76.5 billion tax claim against it by the Zambia Revenue Authority to be material.

First Quantum Minerals CEO Philip Pascal’s statement released on 27th April 27 states that a process for provision of all relevant documentation has been agreed between the company and the ZRA.

He says the process is based on the work undertaken to date and the final value of the claim is not expected to be material.

Mr. Pascal notes that the process is approximately two-thirds complete by value and has not identified any material errors.

He says the company unequivocally refutes the assessment and is committed to transparency and continued engagement with ZRA on the issue.

Mr. Pascal further says the quarterly report states that the amount of VAT accrued by the company’s Zambian operations on March 31, 2018 was $368m of which $271m related to Kansanshi.

He says 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

First Quantum also revealed that it is owed substantial amounts in value-added tax (VAT) repayments from government.

 


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