Business
Assessment from the Zambia Revenue Authority
Assessment from the Zambia Revenue Authority.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \nRNS Number : 7498W Zambeef Products PLC 03 February 2012 \n \n\n \n\n\n\n\nFor Immediate Release\n\n\n3 February 2012\n\n\n\n\n \nZambeef Products plc\n(\"Zambeef\" or the \"Company\")\nAssessment from the Zambia Revenue Authority (\"ZRA\")\nZambeef (AIM: ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, announces that it has received a letter from the ZRA (dated 24 January 2012 and received by Zambeef on 31 January 2012) (the \"Notice\"), which states that there is an outstanding tax liability relating to Zamanita Limited (\"Zamanita\"), the Company's wholly owned subsidiary involved in edible oil seed crushing, importing and processing.\nOn 21 June 2010, the ZRA undertook an audit of Zamanita and advised that the tariff code on importation of palm oil being applied was incorrect and further advised of the correct tariff code to be applied, which attracted a higher rate of duty. Furthermore, the ZRA also advised that the revised rate of duty should be backdated to the time Zambeef acquired Zamanita in January 2008. \nFollowing subsequent discussions with ZRA, an assessment of ZMK 56.5 billion (approximately US$ 11.8 million) was issued by the ZRA on 27 October 2010, which included duties, taxes and penalties.\nIn light of this assessment, Zamanita made an appeal to the ZRA, which resulted in the above assessment being set aside and the Commissioner General of the ZRA, in a letter dated 15 December 2010, issuing a full and final demand of ZMK 8.7 billion (approximately US$ 1.9 million) (the \"Settlement\"), which was paid in by Zamanita in instalments over a six month period, ending May 2011, at which point the matter was considered closed.\nThe Notice overturns the full and final settlement decision of the Commissioner General dated 15 December 2010 and issued in its place an assessment of ZMK 54.6 billion (approximately US$ 10.7 million) which is the original assessment plus accrued interest less the Settlement paid to ZRA of ZMK 8.7 billion (approximately US$ 1.9 million).\nThe board of directors of Zambeef will take all measures to appeal this assessment and further announcements on any future developments will be advised in due course.\nFor further information, please contact: \n\n\n\n\nZambeef Products plc\n\n\n\n\n\n\n\nFrancis Grogan, Chief Executive O...