Chronicle EditorOliver Kazung, Senior Business Reporter
BINDURA Nickel Mine says conclusion of a $14 million tax dispute between its subsidiary, Trojan Nickel Mine Limited (TNML) and the Zimbabwe Revenue Authority has been delayed due to the Covid-19 lockdown.
According to the mining group, the tax differences mainly related to historical issues concerning how the miner was structured many years ago as well as issues arising from the varying interpretation of standard commercial agreements in the industry.
In its annual report for the year ended March 31, 2021 released last week, Bindura Nickel Mine (BNC) said for the outstanding amount, the parties agreed to declare a dispute and pursue the matter through the courts.
“As has been previously reported, the company is involved in a dispute with the tax authorities emanating from tax assessments, which were issued in February 2018, amounting to approximately ZW$14 million,” it said.
“The matter was finally heard on 12 November 2020 and since then, TNML has been awaiting judgement on the matter, which was delayed by the Covid-19-induced national lockdown.”
The tax dispute is still before the Special Court for Income Tax Appeals for determination. In the period under review, the group sold 5 496 tonnes down from 5 685 tonnes in the prior year. The reduction was mainly due to a late start to the year, occasioned by the delay in the finalisation of an off-take agreement with a new customer, ZOPCO, following the termination of the agreement with Glencore. — @okazunga.
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