DRC Govt settles tax dispute with Glencore over super profits
Finance Minister Nicolas Kazadi, during the 93rd meeting of the Council of Ministers, began by outlining the situation of public finances. With regard to revenue, those mobilized from March 1 to 31, 2023 are of the order of 1,217.4 billion FC out of forecasts of 1,384.1 billion FC, thus bringing the execution rate to 88%.
“The cumulative situation in the first quarter of 2023 shows a total amount of revenue of 3.340 billion FC on the cumulative forecasts of 3.556 billion FC, i.e. an achievement rate of 93.9%.
Compared to the revenues made in the first quarter of 2022 which were of the order of 3.323 billion FC, there is a small increase of 16.8 billion FC”, informs the report of the 93rd meeting made Friday, April 7, 2023 by the holder. government word.
According to Nicolas Kazadi, quoted in the report, the poor performance of the DGRAD is the main explanation for the failure to reach assignments in March.
Thus, to improve the level of revenue, the Minister of Finance is counting on the conclusions of various litigation files in progress in the financial authorities as well as the results of the joint control missions of the DGRAD in the mining and environment sectors. .
“The Minister also announced the outcome of the tax dispute over the super profit with the mining group Glencore. Still with regard to the mobilization of revenue, the Minister reminded the attention of members of the government of the obligation of all taxpayers to make the individual declaration of professional tax on income (IPR) under the 2022 financial year in accordance with the new provisions in force”, adds the minutes of the meeting.
Glencore International AG will pay, on behalf of its related companies in the DRC, 180 million dollars to the country. This is the main consequence of an agreement between the government and this company.
In a press release published in December 2022, Glencore specified that the agreement covers all present or future actions based on any act of a corrupt nature allegedly committed by the Glencore Group in the DRC, between 2007 and 2018.
The Swiss commodity trading giant says the deal allows it to continue trading in the DRC. To show its good faith, the company also recalls that the Board of Directors and the Group’s management team have been renewed, including for its activities in the DRC.
Glencore has been present in the DRC since 2008, where it manages two industrial copper and cobalt operations, Kamoto Copper Company SA (KCC) – a partnership with Gécamines and in which it holds 75% of the shares – as well as Mutanda Mining SARL (MUMI) . To date, he claims to have invested over US$8 billion in the development of MUMI and KCC
