Shell appeals to Tanzania tribunal over $520m in capital gains tax claim

[Kurzweil]

Oil giant Shell has taken Tanzania to the tax tribunal over the method used to determine that it owes $520 million in capital gains tax, causing delays in the construction of the country’s first liquefied natural gas plant.

Royal Dutch Shell Tanzania was slapped with the capital gains tax after its £47 billion ($67 billion) takeover of a 60 per cent stake in blocks 1 and 4 in southern Tanzania from BG Group. The blocks contain 16 trillion cubic feet of natural gas. Shell has in recent months focused on the viability of the LNG project in view of a land dispute over compensation. Analysts believe the tax dispute could provide a window for Shell to renegotiate the terms of the project.

Oil giant Shell has taken Tanzania to the tax tribunal over the method used to determine that it owes $520 million in capital gains tax, causing delays in the construction of the country’s first liquefied natural gas plant.

Shell wants the tax tribunal to bar the Tanzania Revenue Authority from demanding the dues. There are fears that a prolonged dispute could halt a $30 billion liquefied natural gas (LNG) facility that Shell and other partners are investing in, leading to smaller plants being pursued by individual investors. The plant was to be completed in 2025.

Royal Dutch Shell Tanzania was slapped with the capital gains tax after its £47 billion ($67 billion) takeover of a 60 per cent stake in blocks 1 and 4 in southern Tanzania from BG Group. The blocks contain 16 trillion cubic feet of natural gas.

The taxman further referred to a precedent set in 2013 when Ophir sold its 20 per cent stake in block 1 and 4 to Pavilion Energy at $1.3 billion and TRA received $228 million in capital gain tax.

Shell argues that it had allocated only 1.8 per cent (the equivalent of $850 million) of the total price paid to the Tanzania unit for the purchase of the stake in BG Group, whose Tanzania subsidiary had already spent about $1.5 billion, hence indicating a loss, not a gain.

TRA has asked Shell to provide information on the method used to allocate only 1.8 per cent of the total sale to its Tanzania business. Sources indicated that Shell had not provided sufficient evidence to TRA before it decided to appeal to the tax tribunal.

Richard Kayombo, TRA director of education and taxpayer services, said that the matter was still in progress but the law barred TRA from discussing the details.

“The law does not allow us to discuss details of the affairs of a taxpayer, especially on issues that have not been concluded as this may jeopardise whatever is being discussed at various levels,” Mr Kayombo said.

Shell has in recent months focused on the viability of the LNG project in view of a land dispute over compensation. Analysts believe the tax dispute could provide a window for Shell to renegotiate the terms of the project.

In 2012, Public Accounts Committee chairman Zitto Kabwe pushed for the government to amend the tax laws to introduce 20 per cent capital gains tax for sale of shares or securities by companies whose assets are in Tanzania.

The matter became a big political issues with MPs from both the opposition and CCM complaining that the government was losing revenues due to lack of a legal mechanism to stop tax leakages.

As a results, the laws were amended in 2013 to allow the government to charge capital gains tax on the companies.

 

[MKWEPA KODI]

Hivi jamani naomba kuelimishwa hii imekuwa Tanzania ya kodi za migogoro au Tanzania ya viwanda

 

[Tutafika]

Hivi jamani naomba kuelimishwa hii imekuwa Tanzania ya kodi za migogoro au Tanzania ya viwanda

Mbona hueleweki, swali lako ni nini?

 

[Masanja]

Hivi jamani naomba kuelimishwa hii imekuwa Tanzania ya kodi za migogoro au Tanzania ya viwanda

Mkuu I see you are very much surprised. But for sure now tables have turned. Everyone has to pay their fair share. Mimi sioni politics hapo. Tatizo ni kwamba siku za nyuma haya makampuni yalikuwa yana deal na wakubwa wanawapa 10% yao na kodi inapotelea hewani..halafu akina Kalumanzira tunaambiwa uchumi unapaa kwa sababu kuna wawekezaji wengi wanakuja Tanzania..........

Hivi niulize haya makampuni yanaweza kufanya huu ujanja ujanja kama wana deal na serikali madhubuti huko Ulaya au kwingineko???? Tumeona makampuni makubwa yakipigwa faini kali sana huko majuu kwa udanganyifu....mpaka serikali zao zinaingilia kati...lakini US wanakomaa nao......leo hii tunadai chetu tunaambiwa eti--Magufuli is ant-business! Only in Africa!

.....these companies should pay their fair share. Huu ujanja ujanja wa kutaka kum-blackmail President hauvumiliki. .....nimeona juzi mjinga mmoja (wanajiitaga experts on so and so..) kaandika article kwenye Economist eti Magufuli is governing impulsively! Na kwa tulioenda shule ukisoma ile article unaona kabisa ni mtu anajaribu kutetea maslahi ya western companies. Trying to blackmail Tanzanian government. We all know these companies are so powerful than most of our governments. It takes guts and courage to take them on. And Magufuli is doing just that!

kama hawataki waondoke..wengine wenye hela yao watakuja wa-invest. Tumechoka na huu ubabaishaji.

It is high time huu uwekezaji unaowafaidisha 1% of our country's elites and political FAT CATS is brought to an end.

Pambana nao Poti tuko pamoja!

 

[MKWEPA KODI]

Mkuu I see you are very much surprised. But for sure now tables have turned. Everyone has to pay their fair share. Mimi sioni politics hapo. Tatizo ni kwamba siku za nyuma haya makampuni yalikuwa yana deal na wakubwa wanawapa 10% yao na kodi inapotelea hewani..halafu akina Kalumanzira tunaambiwa uchumi unapaa kwa sababu kuna wawekezaji wengi wanakuja Tanzania..........

Hivi niulize haya makampuni yanaweza kufanya huu ujanja ujanja kama wana deal na serikali madhubuti huko Ulaya au kwingineko???? Tumeona makampuni makubwa yakipigwa faini kali sana huko majuu kwa udanganyifu....mpaka serikali zao zinaingilia kati...lakini US wanakomaa nao......leo hii tunadai chetu tunaambiwa eti--Magufuli is ant-business! Only in Africa!

.....these companies should pay their fair share. Huu ujanja ujanja wa kutaka kum-blackmail President hauvumiliki. .....nimeona juzi mjinga mmoja (wanajiitaga experts on so and so..) kaandika article kwenye Economist eti Magufuli is governing impulsively! Na kwa tulioenda shule ukisoma ile article unaona kabisa ni mtu anajaribu kutetea maslahi ya western companies. Trying to blackmail Tanzanian government. We all know these companies are so powerful than most of our governments. It takes guts and courage to take them on. And Magufuli is doing just that!

kama hawataki waondoke..wengine wenye hela yao watakuja wa-invest. Tumechoka na huu ubabaishaji.

It is high time huu uwekezaji unaowafaidisha 1% of our country's elites and political FAT CATS is brought to an end.

Pambana nao Poti tuko pamoja!

Huyu ni kiongozi wa dini, sina hakika kama ni shehe au padri

 

[Masanja]

Huyu ni kiongozi wa dini, sina hakika kama ni shehe au padri

hahahahaha......we kijana unataka mtuibie hela halafu muwapeleke akina Mwakyembe na January Makamba kuwanunulia suti kule John Lewis na Harrods??? Tumeshajua janja yenu......tunasema mutuwacheeeee....(in the voice of baba Jesika!)

 

[Tanzania Njema Yaja]

Shell kana kwamba wao ndo wanatutungia sheria.... si waende huko ambako hawatatozwa kodi? Kama wanatake over 60% toka BG kwa nini wasilipe capital gain?

 

[Isanga family]

Walipe kodi hao waache ujanja ujanja...

 

[hopedaima]

Mkuu I see you are very much surprised. But for sure now tables have turned. Everyone has to pay their fair share. Mimi sioni politics hapo. Tatizo ni kwamba siku za nyuma haya makampuni yalikuwa yana deal na wakubwa wanawapa 10% yao na kodi inapotelea hewani..halafu akina Kalumanzira tunaambiwa uchumi unapaa kwa sababu kuna wawekezaji wengi wanakuja Tanzania..........

Hivi niulize haya makampuni yanaweza kufanya huu ujanja ujanja kama wana deal na serikali madhubuti huko Ulaya au kwingineko???? Tumeona makampuni makubwa yakipigwa faini kali sana huko majuu kwa udanganyifu....mpaka serikali zao zinaingilia kati...lakini US wanakomaa nao......leo hii tunadai chetu tunaambiwa eti--Magufuli is ant-business! Only in Africa!

.....these companies should pay their fair share. Huu ujanja ujanja wa kutaka kum-blackmail President hauvumiliki. .....nimeona juzi mjinga mmoja (wanajiitaga experts on so and so..) kaandika article kwenye Economist eti Magufuli is governing impulsively! Na kwa tulioenda shule ukisoma ile article unaona kabisa ni mtu anajaribu kutetea maslahi ya western companies. Trying to blackmail Tanzanian government. We all know these companies are so powerful than most of our governments. It takes guts and courage to take them on. And Magufuli is doing just that!

kama hawataki waondoke..wengine wenye hela yao watakuja wa-invest. Tumechoka na huu ubabaishaji.

It is high time huu uwekezaji unaowafaidisha 1% of our country's elites and political FAT CATS is brought to an end.

Pambana nao Poti tuko pamoja!

You are very right mkuu. Ni lazima wakubali kuwa fair bussines is what matters most sio hiyo dhulumat wanayoitetea

 

[bdo]

Walipe kodi, hawataki waache mzigo

 

[FaizaFoxy]

Mkuu I see you are very much surprised. But for sure now tables have turned. Everyone has to pay their fair share. Mimi sioni politics hapo. Tatizo ni kwamba siku za nyuma haya makampuni yalikuwa yana deal na wakubwa wanawapa 10% yao na kodi inapotelea hewani..halafu akina Kalumanzira tunaambiwa uchumi unapaa kwa sababu kuna wawekezaji wengi wanakuja Tanzania..........

Hivi niulize haya makampuni yanaweza kufanya huu ujanja ujanja kama wana deal na serikali madhubuti huko Ulaya au kwingineko???? Tumeona makampuni makubwa yakipigwa faini kali sana huko majuu kwa udanganyifu....mpaka serikali zao zinaingilia kati...lakini US wanakomaa nao......leo hii tunadai chetu tunaambiwa eti--Magufuli is ant-business! Only in Africa!

.....these companies should pay their fair share. Huu ujanja ujanja wa kutaka kum-blackmail President hauvumiliki. .....nimeona juzi mjinga mmoja (wanajiitaga experts on so and so..) kaandika article kwenye Economist eti Magufuli is governing impulsively! Na kwa tulioenda shule ukisoma ile article unaona kabisa ni mtu anajaribu kutetea maslahi ya western companies. Trying to blackmail Tanzanian government. We all know these companies are so powerful than most of our governments. It takes guts and courage to take them on. And Magufuli is doing just that!

kama hawataki waondoke..wengine wenye hela yao watakuja wa-invest. Tumechoka na huu ubabaishaji.

It is high time huu uwekezaji unaowafaidisha 1% of our country's elites and political FAT CATS is brought to an end.

Pambana nao Poti tuko pamoja!

Nnaona umekurupuka, sheria hiyo ilikuwa haipo mpaka pale Zitto Kabwe alipoishikia bango na kuivumbua kwa Tanzania, Zitto Kabwe anastahiki kila sifa kwa hilo.

Kuhusu she'll hapo juu, hakuna ujanja, wanachosema wao kuwa mpaka sasa wametumia pesa kidogo tu na si pesa za thamani ya mradi kamili, kwanini walipe kodi ya thamani ya mradi kamili? Na nilivyowaelewa TRA wameomba ushahidi kwa hilo.

Sasa sijui wewe umeongea yote hayo kwa lipi zaidi? Au mradi tu ubwabwaje na kuhororoja bila mpango hata kwa yale ambayo huna yakini nayo?

Nnakushauri nenda kajifunze kuhusu "tax evasion" na "tax avoidance" kabla hajaja na pumba zako.

Kumbuka kuwa hao Shell wapo nchi hii kabla ya wewe kuzaliwa na pengine hata baba'ko na mama'ko walikuwa hawajazaliwa. Hiyo kampuni mpaka jina lake leo limeingia kwenye Kiswahili imefikia mpaka vituo vya mafuta tunaviita sheli. Sasa wewe wa kuwafundisha hao sheria za ushuru?

Nnakushauri soma hizi habari kwa kujifunza na si kwa kujidai kurusha shutuma kwa usiyoyajuwa.

 

[Mwelewa]

Naona hapo Shell wamekimbilia mahakamani angali bado hawajawasilisha information zote walizoombwa na TRA. Sasa hapa unaweza ukajiuliza wanashindwa nini? Si kila mara serikali inakosea....naamini hivyo. Ila kwa hakika zaidi time will tell.

 

[Watu]

Shell kana kwamba wao ndo wanatutungia sheria.... si waende huko ambako hawatatozwa kodi? Kama wanatake over 60% toka BG kwa nini wasilipe capital gain?

Hawapingi kulipa kodi, wana chopinga ni ukokotowaji? ni kiasi gani walipe?

 

[Jay One]

Mh. Rais Magufuli safiiii sana sanaaa...!! Kila mtu au kampuni haijalishi ya wapi ilipe kodi accordingly...!! Capital gains tax ilikuwa inakwepa sana... Hao Shell wanajua kabisa wanatakiwa kulipa...!! na Watalipa tu..!!

 

[MKWEPA KODI]

Nnaona umekurupuka, sheria hiyo ilikuwa haipo mpaka pale Zitto Kabwe alipoishikia bango na kuivumbua kwa Tanzania, Zitto Kabwe anastahiki kila sifa kwa hilo.

Kuhusu she'll hapo juu, hakuna ujanja, wanachosema wao kuwa mpaka sasa wametumia pesa kidogo tu na si pesa za thamani ya mradi kamili, kwanini walipe kodi ya thamani ya mradi kamili? Na nilivyowaelewa TRA wameomba ushahidi kwa hilo.

Sasa sijui wewe umeongea yote hayo kwa lipi zaidi? Au mradi tu ubwabwaje na kuhororoja bila mpango hata kwa yale ambayo huna yakini nayo?

Nnakushauri nenda kajifunze kuhusu "tax evasion" na "tax avoidance" kabla hajaja na pumba zako.

Kumbuka kuwa hao Shell wapo nchi hii kabla ya wewe kuzaliwa na pengine hata baba'ko na mama'ko walikuwa hawajazaliwa. Hiyo kampuni mpaka jina lake leo limeingia kwenye Kiswahili imefikia mpaka vituo vya mafuta tunaviita sheli. Sasa wewe wa kuwafundisha hao sheria za ushuru?

Nnakushauri soma hizi habari kwa kujifunza na si kwa kujidai kurusha shutuma kwa usiyoyajuwa.

We mama jaribu unapomnukuu mtu uwe unatumia lugha ya adabu kidogo, utafikiri sio mtoto wa kiislamu jamani

 

[Masanja]

Nnaona umekurupuka, sheria hiyo ilikuwa haipo mpaka pale Zitto Kabwe alipoishikia bango na kuivumbua kwa Tanzania, Zitto Kabwe anastahiki kila sifa kwa hilo.

Kuhusu she'll hapo juu, hakuna ujanja, wanachosema wao kuwa mpaka sasa wametumia pesa kidogo tu na si pesa za thamani ya mradi kamili, kwanini walipe kodi ya thamani ya mradi kamili? Na nilivyowaelewa TRA wameomba ushahidi kwa hilo.

Sasa sijui wewe umeongea yote hayo kwa lipi zaidi? Au mradi tu ubwabwaje na kuhororoja bila mpango hata kwa yale ambayo huna yakini nayo?

Nnakushauri nenda kajifunze kuhusu "tax evasion" na "tax avoidance" kabla hajaja na pumba zako.

Kumbuka kuwa hao Shell wapo nchi hii kabla ya wewe kuzaliwa na pengine hata baba'ko na mama'ko walikuwa hawajazaliwa. Hiyo kampuni mpaka jina lake leo limeingia kwenye Kiswahili imefikia mpaka vituo vya mafuta tunaviita sheli. Sasa wewe wa kuwafundisha hao sheria za ushuru?

Nnakushauri soma hizi habari kwa kujifunza na si kwa kujidai kurusha shutuma kwa usiyoyajuwa.

Wewe haya mambo yako juu ya level ya uelewa wako. wewe level yako ni Arabic na kuimba pambio za mjomba wako wa Msoga!

Mama kwa taarifa yako niliisoma Tax Avoidance na Tax Evasion miaka mingi iliyopita chini ya Msomi mahiri Professor F.D.M Luoga (current DVC)...pale Mlimani.....sijui kama kwa akili yako hii ninayoiona kwenye mabandiko yako ulipita mitaa ile ya UDASA na Engineering kwa Bwashe..kula mtori wa saa nne............

Usipende kudharau watu ambao huwajui! I am sorry dada but I can bet my last dollar...Huna hata robo ya elimu niliyonayo dada! (in Magufuli's voice)

 

[FaizaFoxy]

Wewe haya mambo yako juu ya level ya uelewa wako. wewe level yako ni Arabic na kuimba pambio za mjomba wako wa Msoga!

Mama kwa taarifa yako niliisoma Tax Avoidance na Tax Evasion miaka mingi iliyopita chini ya Msomi mahiri Professor F.D.M Luoga (current DVC)...pale Mlimani.....sijui kama kwa akili yako hii ninayoiona kwenye mabandiko yako ulipita mitaa ile ya UDASA na Engineering kwa Bwashe..kula mtori wa saa nne............

Usipende kudharau watu ambao huwajui! I am sorry dada but I can bet my last dollar...Huna hata robo ya elimu niliyonayo dada! (in Magufuli's voice)

Nenda huko, ungeyajuwa hayo usingekuja na porojo zako za awali. Umeshindwa kujibu hoja unaanza kubwabwaja na kuhororoja bila mpango.
Wewe umeenda chuo ukubwani (labda), sisi tunaanza chuo tungali wadogo wa miaka mitatu. Hiyo ndiyo tofauti kubwa ya uelewa kati yetu na wale kama wewe.

Vyuo nilivyosoma mimi wewe hata visiting tu hupati appointment. Kumbuka hilo.

 

[FaizaFoxy]

We mama jaribu unapomnukuu mtu uwe unatumia lugha ya adabu kidogo, utafikiri sio mtoto wa kiislamu jamani

Kipi ulichokiona si cha adabu? Nukuu.

Punguani wahed.

 

[Loraa sum's]

hahahhaaha, watanzania bwana yani watu wameacha mada wanaanza kupeana taarab, sasa hapo sijui nani mwenye hekima kati yenu wewe masanja na mwenzako

 

[MKWEPA KODI]

Kipi ulichokiona si cha adabu? Nukuu.

Punguani wahed.

Kwi kwi kwi kwi kwi kwi