hide message

Welcome to the Resource Centre

We make it our mission to work with advocates in civil society, business and government to address inequalities of power, seek remedy for abuse, and ensure protection of people and planet.

Both companies and impacted communities thank us for the resources and support we provide.

This is only possible because of your support. Please make a donation today.

Thank you,
Phil Bloomer, Executive Director

Donate now hide message

You are being redirected to the story the piece of content is found in so you can read it in context. Please click the following link if you are not automatically redirected within a couple seconds:
en/so-africa-lonmin-accused-of-moving-millions-in-platinum-revenue-to-fiscal-haven-company-denies-claims-of-tax-avoidance#c106713

So. Africa: NGO report alleges profit shifting by Lonmin - attributes failure to meet Marikana wage increase demands to this practice; Lonmin denies allegations

Author: Dick Forslund, Alternative Information and Development Centre, Published on: 7 October 2014

‘So. Africa: The Bermuda connection: Profit shifting and unaffordability at Lonmin 1999-2012’, 7 Oct 2014: This paper draws on materials...[from] the proceedings of the Marikana Commission of Inquiry...Implicitly, it takes Lonmin as an example to ask if a new commodity boom really is needed for South African mining corporations to pay decent wages, comply with environmental regulations or to implement Social Labour Plan (“SPL”) obligations...From such studies we can infer that the implementation of the existing tax regime...could go a long way to finding sufficient financing for social infrastructure and housing, as well as land and water rehabilitation...in mining communities...Transfer pricing schemes are often formally legal...[However] discussion on mining taxation techniques, resource tax or tax on profits shouldn’t be separated from discussions on tax avoidance and tax evasion...[W]e are of the view that Lonmin has been engaged in two transfer pricing arrangements....[Also refers to AfriOre, Akanani, Anglo American, Eastern Platinum, Glencore Xstrata, Impala, Incwala, JP Morgan, KPMG, LMS, Messina, PGM, Shanduka, Southern Platinum, Western Metal Sales, Western Platinum]

Read the full post here

Related companies: Anglo Platinum (part of Anglo American) Impala Platinum J.P. Morgan (part of JPMorgan Chase) KPMG Lonmin