ActionAid’s revelations on Zambia Sugar misleading, says ABF

Associated British Foods (ABF), a British multinational food processing and retailing company headquartered in London, owns Illovo, Zambia Sugar’s parent company.

An investigation by ActionAid found Zambia Sugar to have avoided paying taxes to government enough to put 48,000 children in school a year.

ActionAid claimed Zambia Sugar had paid “virtually no corporate tax in Zambia since 2007″.

Investigation findings released on Sunday showed that the company moved millions of kwacha out of Zambia and into tax havens like Mauritius and the Netherlands, reducing its taxable profits.

The company, which generated profits of KR550 million, was accused of siphoning over KR374 million out of Zambia and paying only 0.5 per cent of its pre-tax profits.

The report also accused ABF of “exploiting two separate tax breaks originally intended respectively for domestic Zambian farmers and big foreign investors.