Zambia Sugar accused of tax avoidance after sending massive profits abroad

Zambia PLCThe firm, Zambia Sugar, has recently posted record pre-tax profits and its huge plantation is increasing its capacity to produce more sugar for markets in Europe and Africa. Yet it paid less than 0.5% of its $123m pre-tax profits in corporation tax between 2007 and 2012.
The company benefits from generous capital allowance and tax-relief schemes in Zambia, but the investigation also found that it funnels around a third of its pre-tax profits to sister companies in tax havens, including Ireland, Mauritius and the Netherlands. Tax treaties between Zambia and some of those countries mean the state’s revenue authorities are unable to charge their normal tax on money leaving their shores.
The revelations are contained in a report published by ActionAid, which exposes how Zambia Sugar has kept its contribution to the state’s exchequer so low, although the company says that globally it actually pays a higher rate of tax on its profits than it otherwise would due to its corporate structure.
It is estimated that the tax haven transactions of this one British headquartered multinational deprived Zambia of a sum 14 times larger than the UK aid provided to the country to combat hunger and food insecurity.

Zambians it is time to ask Zambia Sugar Plc to pay its share and to be corporate responsible to its community. Tell Members of Parliament (MPs), Zambia Revenue Authority (ZRA), Security and Exchange Commission (SEC) to investigate Zambia Sugar Plc and have the report made public for Zambians to read.