Writes Leo Odera Omolo
Tanzania and Russia may soon face each other in court in ne of the toughest legal battle against a Russian firm in a multimillion dollar engaged in the business of mining uranium over tax evasion.
Information emerging from Dar Es Salaam says that state is demanding nearly USD 206 million, which is equivalent to Tshs 329 billion taxes from the Russian firm ,Rosatom disputes the taxes invoices.JSC Atomredmetzoloi {ARMTZ} OF Russia in relation to its Mkunju River Uranium mines that the state owned mining arm of Russia’s nuclear watchdog
As a result the ARMZ, Uranium Holdings through its lawyer FB Attornery has filed a case before the Tax Appeal Tribunal of Tanzania to challenge the tax claim.
Gandasiosus Ishengoma also a lawyer confirmed last week that the ARMZ has challenge the state over its claim and filed a case through theTax Apeal Tribunal.
The Energy and Mineral Minister Prof. Sospeter Muhongo was quote by a source in Dar Es Salaam as saying that the Tshs 329.01 billion {205.80 million tax had originated from MkunjuRiver uranium mining.
TAnzania law was enacted in 2011 in order to close loophole in a tax holiday incentive because that allowed foreign firms to operate tax-free for first five years.
He same law stipulates that any foreign firm operating in the country must pay capital gain tax, when it changes to a third party.
Mantra Tanzania Ltd the former owners of Mkunju River uranium mine in December 2010 cedeed the project operations to AMZ after the firm had acquired the percentage. Mantra Resources of Australia For Tshs .1.667.1 billion USD.O43.8 million..
And immediately after the transactions, the state through the Tanzania Revenue Authority [TRA] issued invoices demanding that ARMTZ settles Tshs 327.7 million out of the total USD 9.8 in stamp duty.The sum is quoted as being equavalent to 43 per cent of the current Tazania’s health and social welfare budget of Tshs 753.85 billion..
Observers and watchers of Tanzania-Rusia relations have maintained that the tax battle between the two countries could create bad blood between the two business partners.
In April last year Tanzania licensed ARMTZ RANIUM Holding to establish the first uranium mines in Mkunju River which is located in the south of the country.
This licence is the first to be issued by Tanzania and the newly enacted mining laws.
Ends