Alliance One may have moved $4.2-million in taxable profits out of the country
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.The tobacco industry brings in 60% of Malawi's foreign earnings and employs half a million people.
Alliance One did not respond to our request to explain why it declared little or no profit despite substantial export revenue in those years.In the two years covered, they show that Alliance One did pay $843,000 in a category called “withholding tax”. This is a 20% levy that is applied by the government when local companies pay foreign entities.
Customs data also shows that Alliance One sold about a fifth of the tobacco leaf to sister companies within the Pyxus International group. This is at an average of $5.31 per kilogram, which is lower than the $5.39 per kilogram average for sales to unrelated companies. Alliance One binds contracted farmers to sell only to it and then asks banks to lend them money for fertilisers and other inputs. The company commits to paying the bank should the farmer default. Msukwa said that he agreed to a loan of five million kwacha in a recent farming season, but 10-million kwacha was deducted from his sales income for loan repayment, leaving him with two million kwacha for three months of work.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Investment Forum: Big names, big topics at this year's eventThe Investment Forum: Big names, big topics at this year's event
Read more »
Gold Leaf Tobacco: SARS claims billions from Sasfin in Rudland money laundering debacleSars alleges that at least R8.2-billion in untaxed funds, linked to Gold Leaf Tobacco, were unlawfully sneaked out of the country over the past decade.
Read more »
New Zealand Repeals Law Raising Legal Age for Buying TobaccoNew Zealand has repealed a law that would have gradually raised the legal age for buying tobacco products. The government aims to reduce smoking through a different regulatory approach.
Read more »
Making a dent in tax non-complianceSars’s focus on the illicit tobacco market yields billions.
Read more »
Fixing big things – how to get it doneA major part of fixing the country is about completing significant projects: roads, bridges, power stations and so on. These tasks are overseen by Rudi Dicks, head of project management in The Presidency.
Read more »