NGO report says corporate tax dodging deprives Zambia of $3 billion annually, impeding investment in health, education, etc.
Summary
Date Reported: 28 Oct 2015
Location: Zambia
Companies
Vedanta Resources Limited - Parent Company , Konkola Copper Mines (KCM) - SubsidiaryProjects
Konkola Copper Mines (KCM) Copper Mine(s) in Zambia (Mine Name Unknown) - UnknownAffected
Total individuals affected: Number unknown
Public entity: ( Number unknown - Location unknown - Sector unknown , Gender not reported ) , Community: ( Number unknown - Location unknown - Sector unknown , Gender not reported )Issues
Access to Information , Tax avoidance & evasionResponse
Response sought: No
Source type: NGO
'Extracting minerals, extracting wealth: how Zambia is losing $3 billion a year from corporate dodging', 21 Oct 2015: Zambia has abundant natural resources – including minerals and agriculture – yet gains little tax revenue from the extraction of its resources, leading to lost opportunities to invest in public services such…education and health which are essential in tackling poverty…[M]ultinationals…dodge paying their fair share of tax. In 2012 it was calculated that the amount avoided by companies…was around $2 billion a year – representing 10% of Zambia’s GDP. Looking at three companies…Glencore, Vedanta, and Associated British Foods, the report examines the details of such tax avoidance...[C]urrent attempts to write…global rules…for tax are taking place through the OECD…For Northern governments’ actions to be credible, they must stop supporting rules that enable…the continuing existence of tax havens. Multinationals must be held to account for their tax dodging and southern countries should be able to participate as equals in the development of international tax rules…[also refers to Zambeef]