Cheki wakwepa kodi hawa hapa. Ripoti imeandaliwa na Tanzania Episcopal Conference (TEC) National Muslim Council of Tanzania (BAKWATA) na Christian Council of Tanzania (CCT) Select examples of the use of tax havens by TNCs operating in Tanzania Vodacom Vodacom Tanzania Ltd has a 42 per cent share of the Tanzanian mobile phone subscription market, making it the market leader.78 It is part of Vodacom Group Ltd, which is 65 per cent owned by Vodafone and based in South Africa where it is listed on the Johannesburg Stock Exchange. Vodacom Group has offshore investment companies in the tax haven of Mauritius; the company's pre-listing statement for the Johannesburg Stock Exchange detailed two Mauritius subsidiaries. Vodacom International Ltd is referred to in company documents as ‘Vodacom Mauritius' and holds a majority stake in Vodacom Mozambique and Vodacom DRC. The pre-listing statement also refers to another Mauritius-based subsidiary called Kalum Investments Ltd which has a wholly owned UK subsidiary called Vodacom UK Ltd.79 Vodacom Group's latest Annual Report (for the year ended 31 March 2011) also refers to a ‘cash generating-unit' incorporated in Mauritius called Vodacom Business Africa Ltd.80 Tigo Tigo has a 22 per cent share of the Tanzanian mobile phone subscription market81 and is the brand name of the international telecommunications company Millicom International Cellular S.A. (MIC). MIC is incorporated in the tax haven of Luxembourg. Its June 2011 Prospectus for the admission to the NASDAQ OMX Stockholm notes that the company's assets are held ‘mainly but not exclusively through holding companies incorporated in the Netherlands and the Netherlands Antilles.' (the latter being another tax haven).82 The same document also shows that the group has a subsidiary in the Cayman Islands (Telemovil Finance Co. Ltd) and a Bermuda incorporated holding company (Amnet Telecommunications Holding Ltd).83 Zantel Zanzibar Telecommunications Ltd (Zantel), another major mobile phone operator in Tanzania, is a subsidiary of the telecommunications company Etisalat, incorporated in the United Arab Emirates. Telecommunications companies pay no corporation tax in the UAE. The group is also reported to have a Mauritius-based incorporated subsidiary.84 African Barrick Gold African Barrick Gold is Tanzania's largest gold producer and one of the five largest gold producers in Africa. It is listed on the London Stock Exchange and is 73.9 per cent owned by Canada-based Barrick Gold, the world's largest gold mining company.85 African Barrick Gold has holdings companies in Mauritius and the Cayman Islands (named BAPL Holdings Ltd and CayCo Tz Ltd respectively) and a ‘Group Finance Company' incorporated in Barbados (named BarbCo One Ltd). Two of the group's numerous exploration companies, Barrick Tanzania Holdings Ltd and KMCL Holdings Ltd, are also incorporated in the Cayman Islands.86 AngloGold Ashanti AngloGold Ashanti, which operates the Geita gold mine near Mwanza, had four principal subsidiaries at the time of its May 2009 Prospectus for admission to trading on the London Stock Exchange: one in the US, one in Australia, and two in tax havens: the Isle of Man and Guernsey (called AngloGold Offshore Investments Ltd).87 THE ONE BILLION DOLLAR QUESTION: How Can Tanzania Stop Losing So Much Tax Revenue Tanzanite One Richland Resources Ltd (formerly TanzaniteOne Ltd) is the world's largest tanzanite miner. It is listed on the AIM market in London and is incorporated in the tax haven of Bermuda.88 The company has a Mauritius-based holding company called Afgem International Ltd and a marketing company based in the Carribean island of Nevis.89 Its jewellery sales are carried out by subsidiaries in the UK, South Africa and Hong Kong, but it also operates wholly owned subsidiaries involved in Tanzanite sales in Mauritius and the United Arab Emirates.90 Resolute Mining Ltd Resolute Mining Ltd has several subsidiaries registered in Jersey, namely Resolute (CDI Holdings) Ltd, Resolute (Finkolo) Ltd and Resolute (Somisy) Ltd.91 Williamson Diamonds Ltd Petra Diamonds acquired the Williamson diamond mine from De Beers in 2008.92 The company is incorporated in the tax haven of Bermuda and managed from Jersey where its company registrar is Capita IRG (Offshore) Ltd.93 Petra Diamonds has a mining and exploration subsidiary registered in the British Virgin Islands called Cullinan Investment Holdings Ltd and two offshore investment holding companies: Petra Diamonds Angola Holdings Ltd, also incorporated in the British Virgin Islands, and Willcroft Company Ltd which is incorporated in Bermuda.94 The latter holds 75 per cent of the shares in Williamson Diamonds Ltd.95 Tanzania Breweries Ltd Tanzania Breweries Ltd is 33 per cent owned by SAB Miller.96 According to research by ActionAid, SAB Miller has subsidiaries in the tax havens of Mauritius, the British Virgin Islands, Switzerland, Netherlands Antilles, Nevis, Cyprus, Guernsey, Cayman Islands, Hong Kong, Jersey, Gibraltar, the Isle of Man and Luxembourg.97 Tanzania Breweries' capital goods are purchased from a procurement agent called MUBEX98 an SAB Miller subsidiary incorporated in Mauritius.99 How much are mining companies paying in tax? Historically, mining companies have paid very little tax.35 Presently, the IMF notes that they pay around $100 million a year in all taxes36 which is equivalent to less than 7 per cent of the value of mineral exports37. Lower figures are provided by the Tanzania Minerals Audit Agency (TMAA), which states that the six major gold mines paid $80.6 million in 2008.38 If PAYE accounts for 65 per cent of mining sector taxes, then the companies themselves are only paying around $35 million a year, using the $100 million total estimate of the IMF. This amount would more than double if the tax exemptions accorded to mining companies (worth $45.6 million) were removed. SOMA ZAIDI KWENYE ATTACHMENT!