hide message

Hello! Welcome to the Resource Centre.

We hope you find our free tools and resources useful. Did you know we also work directly with community advocates, providing them with the skills and resources to document corporate human rights abuses and effectively communicate with business?

This is only possible through generous donations from people like you.

Please consider supporting our work.

Thank you,
Phil Bloomer, Executive Director

Donate now hide message

Tanzania: Govt' official alleges foreign mining companies using loopholes to avoid tax, Acacia & AngloGold Ashanti respond

Tanzania's Controller and Auditor General has called for a review of the tax code for the country to benefit from the extractive sector. He claimed that foreign mining companies use loopholes in mineral development agreements to dodge tax. The Business & Human Rights Resources Centre invited both Acacia and AngloGold Ashanti to respond to the allegations. Acacia provided a response which is available here. Both Acacia and AngloGold Ashanti referred us to the official statement by the Tanzania Chamber of Minerals and Energy which is also provided here.

Get RSS feed of these results

All components of this story

Company response
2 May 2017

Acacia's response

Author: Acacia Mining

 "Acacia Mining's Response"

Acacia, like many other mining companies, has agreed to voluntarily comply with a number of the regulations of the 2010 Mining Code despite the terms of legal agreements that the Tanzanian Government signed when the companies originally decided to invest significant amounts of money into Tanzania. [Acacia also referred to a statement by the Tanzanian Chamber of Minerals & Energy: “The Mining Industry and Taxes”.]

Read the full post here

Download the full document here

Company response
2 May 2017

AngloGold Ashanti response

Author: AngloGold Ashanti

[As its response, AngloGold Ashanti referred to a statement by the Tanzanian Chamber of Minerals & Energy: “The Mining Industry and Taxes”.]

 

Read the full post here

Download the full document here

Article
2 May 2017

Controller and Auditor General allege mining companies involved in tax avoidance

Author: IPP Media (Tanzania)

"CAG slams mining deals, urges rethink of tax code”

Prof Mussa Assad, the Controller and Auditor General (CAG)...[has said] that Tanzania must review contracts and rethink its tax code if it wants to benefit from the extractive industry. Assad said a partial review of existing mineral development agreements (MDAs) signed between the government and large-scale gold mines conducted by his office established that foreign investor companies use several loopholes in the contracts to dodge taxes. "The MDAs were found to have unreasonable terms which undermine public interests such as unreasonable conditions for renewal of licenses, protection against future amendments of laws, unreasonable agreements in foreign currency policies, custom arrangements and unreasonable incentives in tax and accounting treatment of capital expenditures...The government is advised to use sanctity of fundamental clauses which exist in most MDAs to renegotiate the unfavourable contractual terms."

The CAG said he came to that conclusion after personally studying mining contracts between the country's four biggest gold-producing mines - Geita Gold Mine (owned by Anglogold Ashantia) and three mines owned by Acacia Mining Plc - Buzwagi, Bulyanhulu and North Mara. "Significant weaknesses were noted in procedures to enter MDAs, such as government relying on prospecting and feasibility reports conducted by the license applicants without having an adequate mechanism to monitor and verify the submitted reports, therefore impairing the government bargaining position," he said.

Read the full post here

Article
2 May 2017

Leader says tax avoidance by multinationals depriving Tanzania 5% of national income

Author: The Guardian (Tanzania)

“Zitto wants foreign firms taken to task via tax review”

ACT-Wazelendo leader Zitto Kabwe yesterday recommended that a major review be carried out on tax laws that involve multinational corporations to ensure the country’s tax base is maintained…[He] appealed to the government to carry out an amendment on its tax laws to ensure the country gets what is required… According to him, various studies had found that Tanzania lost 5% of the national income due to tax evasion by multinational companies through tax planning measures…

Read the full post here