Zambia in talks with Canadian mining giant over customs duties underpayment

LUSAKA, March 23 (Xinhua) -- Zambian Vice-President Inonge Wina said Friday that the Zambian government has engaged Canadian mining giant First Quantum Minerals following revelations of underpayment on customs duties.

The Zambian vice-president said the revelations of alleged underpayment should not cause alarm as the matter was being handled administratively.

She however said when answering questions from lawmakers in parliament that the issues should not have been brought out in the light if all companies in the country were compliant to their tax obligations.

Zambia's revenue agency, the Zambia Revenue Authority (ZRA), has slapped First Quantum Minerals a tax bill of 7.7 billion U.S. dollars for unpaid import duties over a five-year period after an tax assessment.

The revenue agency has since announced that it will from March 26 commence audit of all mining firms in the country.

But First Quantum Minerals, which operates two large mines in northwestern Zambia, has disputed the tax bill as it said the assessment lacked discernable basis of calculation. Enditem