Wamekishakwiba tena?

BAK · 2011-02-12T16:37:52+00:00

By ALVAR MWAKYUSA, 11th February 2011 @ 19:50, DAILY NEWS A WHOOPING 50bn/- remains to be accounted for by the government even after mining and gas companies in the country claimed to have paid the sum as part of various taxes and royalties between July 1, 2008 and June 30, 2009, it has been revealed. A reconciler appointed by the Tanzania Extractive Industries Transparency Initiative Multi-Stakeholder Group (TEITI-MSG) could hardly tally the monies, out of which 24.1bn/- accrued from taxes and $18m (approximately 26.32bn/-) was from royalties said to have been paid to various government institutions. The revelation is contained in a reconciliation report launched in Dar es Salaam on Friday. The 80-page report shows that mining and gas companies in the country reported to have paid a total of 62.15bn/- in form of taxes charged under the Income Tax Act of 2004 during the period under review whereas the government reported to have received just 38.03bn/-. On the other hand, whereas the companies claimed to have paid royalties amounting to $36.7 (approximately 51.24bn/-) the government reported to have received only $18.8 (approximately 26.32bn/-) during the period under review. One amusing thing is also that the Tanzania Revenue Authority (TRA) said it had received from the companies a total of 66.12bn/- as part of revenues collected on behalf of the government, the latter reported to have paid a sum of 65.5bn/- to the tax collector. This means that TRA reported to have received more taxes than what the companies had declared, according to BDO East Africa Audit Director, Mr Juvenal Betambira. He complained, however, that while templates sent to companies for reconciliation process had reported on accruals basis whereas the exercise was supposed to be carried out on cash accounting basis. UKs Hart Nurse Limited was appointed in association with BDO East Africa to undertake the first EITI reconciliation report in the country. The consultant was charged to reconcile payments made by the companies and revenue received by the government as one among requirements of Tanzanias membership to the Extractive Industry Transparency Initiative (EITI). A total of 12 companies, nine from the mining sector and three gas companies were involved in the first ever scheme aimed at enhancing transparency and accountability in the extractive industries in the country. The companies are Resolute Tanzania Limited as well as Geita, North Mara and Buzwagi gold mines. Others were Bulyanhulu and Tulawaka gold mines in addition to Tanzanite One Mining Limited, Williamson Diamonds Limited and El-Hillal Minerals Limited. The other reporting companies were Pan African Energy, Artumas and Tanzania Petroleum Development Corporation. The report shows payments made in different categories such as taxes charged under the Income Tax Act of 2004, sector specific taxes in addition to fees and revenues collected on behalf of the government. Speaking during the occasion, EITI MSG Chairman retired judge Mark Bomani said the shortcomings will be forwarded to the Control and Auditor General (CAG) for further scrutiny. At present, efforts are being made by the reconciler to establish the cause of the difference whether it was a case of improper accounting, conversion from US dollars into local currency or misuse, said Judge Bomani. It was from the recommendation of the Presidential Mining Reform Committee, known as the Bomani Committee that Tanzania joined the EITI in 2009 as a candidate member of the initiative with 30 members worldwide. The reconciler recommended in the report, among others, that in future the TEITI secretariat and government should remain active in future reconciliations and give clear leadership to ensure that reporting entities report promptly and fully.

Thread starter BAK
Start date Feb 12, 2011

BAK

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Feb 12, 2011

Mdondoaji

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Feb 12, 2011

Mhafidhina

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