Glencore Mopani Tax Research - version post-signoff_2021.12.16 clean - errors edited clean

Perceived deficiencies in the existing rules were the basis for much of the international momentum that led to the OECD base erosion and profit shifting (BEPS) project, and subsequently the OECD’s ongoing work on the tax challenges arising from the digitalization of the economy (BEPS 2.0). [...] In doing so, this study aims to elevate the issues of mining sector tax avoidance in the public debate in Zambia and empower participants in that debate with both an improved understanding of the issue and compelling evidence of the potential scale of mining sector tax avoidance. [...] In the early twentieth century, one of the world’s largest sources of copper ore was found on the border of Zambia and the Democratic Republic of Congo. [...] This decision was made against the backdrop of low tax revenues from the mining sector and suspicions of significant profit shifting by multinational mining companies.50 By increasing the royalty rate and abolishing the income taxes, the government effectively sought to change the mining tax regime from a mixed regime (taxing profit and collecting royalties on mineral sales revenues) to a royalty-. [...] With the weight of the industry against them, the changes were abandoned, and a mixed regime that included corporate income tax and lower royalty rates was reinstated in the wake of the 2015 elections.