Zambeef, a fully integrated agri-business with operations in Zambia, Nigeria and Ghana, has been hit with a $10.7m bill from the Zambia Revenue Authority (ZRA), for an outstanding tax liability relating to Zamanita, the company's wholly-owned subsidiary involved in edible oil seed crushing, importing and processing.
Zambeef is now planning to appeal against the hefty bill, which arrived after a period of contention over the matter.
Following an audit by the ZRA of Zaminita, the firm was informed the wrong tariff code had been used on the importation of palm oil. The firm was consequently told to pay around $11.8m to cover duties, taxes and penalties, which Zamanita appealed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The assessment was then set aside and the Commissioner General of the ZRA issued a full and final demand of around $1.9m, which was paid in by Zamanita in instalments over a six month period, ending May 2011, at which point the matter, according Zamanita, was considered closed.
The latest assessment is now charging for the original assessment plus accrued interest, but discounting the sum already paid.
The share price fell 7.95% to 40.5p by 11:52.
NR
