ZRA ADOPTS APPS TO MONITOR TOP MINING FIRMS FINANCES, COPPER FLOW
By BUUMBA CHIMBULU THE Zambia Revenue Authority (ZRA) and the Norwegian Tax Administration (NTA) have jointly developed an annual systematic tool that analyses finances of the top three mining companies while examining the entire copper flow in the country.
The tool is drawing informa- tion from the Mineral Output Statistical Evaluation System (MOSES), taxonline and company group annual financial reports.
ZRA commissioner-general, Kingsley Chanda, explained that the tool would be used as a baseline against which the authority could gauge other mining companies and for future consideration.
“The top 3 risk reports will assist in understanding the risk areas posed by the mining companies and also any risks that may arise in the copper flow and thereby enabling ZRA to proactively take necessary remedial actions through audits and other interventions that maybe necessary,” Mr. Chanda said.
Mr. Chanda was speaking at the Evaluation workshop on the NTA-ZRA cooperation (2011 – 2017) in Lusaka this week.
He also said the results of the co-operation between ZRA and NTA such as improved audit approach in the transfer pricing unit, mining and non-mining tax audit units were visible.
Mr. Chanda said the NTA technical assistance would enhance the transfer pricing documentation rules that the Government was working on for possible enactment in 2018.
“As ZRA we are very grateful to the Norwegian government and the NTA for the financial and technical support that we have received over the seven years aimed at strengthening capacity of our tax administration in dealing with our large taxpayers, particularly those in the extractive industry,” he said.
He also thanked the Norwegian government for extending support to March 2018 which was coming to an end this year.
NTA international director, Egil Martinsen, commended ZRA for efforts put in place to increase revenue collection.
Mr. Martinsen said the specified units for revenue collection put in place by ZRA were an important step in achieving good results.
“We are happy to note that we are almost on the same page of important results, it has been big increase in revenue which is important but other than that, you have developed new skill in risk management and data analytics,
“You have established specific units for collection which are very important to achieve good goals, we hope that capacity building should increase and sustainable,” Mr. Martinsen said.