Modigliani and Miller (1958). "The cost of capital, Raheman and Nasr (2007). "Working Capital
corporation finance and the theory of investment." Management and Profitability - Case of Pakistani
American Economic Review 1958; 48: p 261-297. Firms." International Review of Business Research
Papers Vol.3 No.1, pp. 279 - 300.
taxed in that State". The term "immovable property" includes among mineral deposits, sources and other natural
resources. Refer the case of Rupert Kimber v HMRC 2012] UKFTT 107 (TC) (08 February 2012)4;
The scope of the information covers any and all information that relates to the enforcement and administration
of the requesting jurisdictions ' tax laws, including, information relating to capital gains 5 and includes income
information, bank: information, transfer pricing information, ownership information etc. (Tax and Development
Practical Guide on Exchange of Information for Developing countries 2012).
There are International Norms, rules and rights as provided under the Vienna Convention of the Law of Treaties
where States have original jurisdiction to tax in accordance with the international law. Likewise, by virtue of
section 31 of the Vienna Convention of the Law of Treaties, the treaty must be interpreted in good faith with its
ordinary meaning in light with its object and purpose. In any case where there are no treaties, the Domestic Law is
taken into account for the interpretation of DTA when nothing more can be derived from the treaty itself. Hence,
even courts have been using the "Substance over Form" to disregard the legal form of a transaction in favour of
its time economic substance. (Refer also the case of Afrika Mashariki Gold Mines Ltd V Commissioner General
TTLR 3 (2005) 6(Mafwenga 2012).
4 Rupert Kimber v HMRC 20l 2} UKFIT 107 (TC) (08 February 2012)
Brief Facts: The taxpayer returned to the UK having spent many years abroad, working in Japan. He returned to the UK on 17 July 2005 and
remained here until 30 July 2005 , when he went on holiday to Italy for four weeks, returning at the end of August. On 12 August, he
disposed of a block of shares, realizing a gain on which the capital gains tax charge was 96,499.60. When he returned from Italy at
the end of August, he took up employment with a company in the UK. He claimed that he did not become UK resident until the end
of August; his stay in the UK during July was part of his normal holiday arrangement. During that stay, he arranged to take a lease
on a UK property. HMRC 6, the publication dealing with residence, states:
Issue: The Issue was whether Taxpayer was a resident in UK and liable to capital gains tax; the Brief facts were that; the taxpayer returned
to the UK having spent many years abroad, working in Japan.
Held: It was held by the tribunal that the circumstances were that the taxpayer had decided to remain in the UK prior to 30 July, when he left
for his holiday and was UK resident when the shares were disposed of on 12 August
Held: It was held inter alia that in tenns of section 13 read together with section 3(1) of the Income Tax Act 1973, any person who sells any
financial asset owned by him in Tanzania then the difference between value of consideration for which such financial asset is sold and its adjuste
cost that has not been claimed as deduction in respect of capital expenditure will be deemed to be capital gains income on such person accrue
or derived from the United Republic in the year of income it takes place. A non-resident person owning assets outside the United Republic is no
chargeable to tax both under section 3(1) (b) as read together with sections 3(2) (e) and 13(1) of the Income Tax Act 1973 ; and that since it ha
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Statement of the Problem
Tanzania is losing capital gains tax revenue not only due to tax evasion, capital flight and profits laundering by
mining companies but also "due to inefficient and ineffective administration in the mineral tax regime in particular,
thereby preserving room for an increasing trend of offshore sale of shares without paying capital gains tax."
"Foreign mining companies operating in Tanzania have exclusive ownership of their operations, and while
looking at the minerals recovered they have complete power to dispose such minerals as they wish, including to
transfer rights such as shares to other companies, without incurring capital gains tax" (Curtis & Lissu (2008, p. 15).
Likewise, the case of Afrika Mashariki Gold Mines Ltd V Commissioner General TTLR 3 (2005) astoundingly
opened Pandora box on the dilution of taxing rights with regard to the capital gains on offshore sale of shares.
It is worth noting that, the control of ownership which would provide taxing rights for Tanzania, on sales of
shares have not been possible to be exercised because Stamp Duty Act Cap. 189 attain its application within local
jurisdiction while on contrary; most sales of shares by multinational companies are executed outside Tanzania. It is
also not possible in the collection of capital gains tax on realization of assets where there are no DTAs that could
otherwise provide taxing rights.
The League of Nation Report (1923) identified four elements that would constitute economic allegiance of income
as follows;
Stock in companies or other associations was thought to have a closer connection with the residence of the
stockowner than with the origin of income from stock especially when residence was frequently consistent with
the remaining elements. They had to provide taxing rights to country of residence.
The origin is only important when it represents the place where income was physically or economically produced.
Even though it may be possible to split the income source between the origin and residence, residence is considered
the predominant element to economic allegiance in corporate stock, i.e. it is more appropriate to be used for
source attribution. Elements (a) - (c) in combination are generally regarded as the basis of the tax jurisdiction
of source countries, while element (d) concerns residence countries (League of Nations 1923 Report (1920s).
However, the Report could not be able to substantiate to what extent residence countries with double residential
status accommodate fully the taxing rights.
League of Nations 1923 Report (1920s) went further on pointing out that, if the origin of income from corporate
stock were economically derived from multiple countries, the claims by different origin countries would trigger big
disarray. As to the capital gains from stock sales by non-residents, policy and administrative convenience concerns
in exercising the right to tax can create exceptions to this economic allegiance to origin countries. Origin has some
significance when the location where the stock is registered with enforceability of legal protection, coincides with
the place of origin. However, the Report has not been able to provide the actualization of the term origin as to mean
the place where assets is situated or the place where registration took place.
been proved that the seller of the financial assets in question is a non-resident person and the said asset is not owned in the United Republic, the
transaction is not chargeable to capital gains tax as per section l3(\) of the Income Tax Act 1973
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Physical situs
Physical location of the stock constitutes little economic allegiance in the capital gains of stock sales. Situs of title
passage rule was once adopted by the U.S. in determining the source of stock sales, in accordance with the general
title passage rule for source attribution of personal property sales.
In the Mr. Mitchell B. Carroll (1933) Study, in light of international tax law development after the 1928 Draft,
outlines that, the problem of allocation is not limited to business profit, but should consider the sale of capital
assets as well, whether they were real or personal property. Following the source rule practice of the majority of
countries at that time, it provides definition of the situs that" situs is the source of income from the purchase and
sale ofreal estate while the country in which the sale takes place is the source of income from the purchase and sale
of securities or other intangible personal property"; However, that study could not be able to quantify the taxing
rights of capital gains on sale of capital assets.
In the case of CIR v Lever Brothers and Unilever Ltd (1946 AD 441F, it was held inter alia that, "the source of
receipts, received as income, is not the quarter where they come, but the originating cause of their being received
as income, and that this originating cause is the work which the taxpayer does to earn them, the quid pro quo which
he gives in return for which he receives them". Further case law made it clear that once this originating cause is
established it should be allocated to the appropriate source location to determine the source of that income.
In the Sweden - U.S. tax treaty 1939 speculative capital gains of non-residents were taxable only if such gains were
derived from real property in Sweden, which is consistent from the source rule. However, the Tax treaty has not
been able to preserve taxing rights on the gains derived from real property outside Sweden.
Residence or domicile
In the early history, the residence of both individuals and corporate taxpayers were relatively stable. The economic
analysis was also based on the assumption that all the capital gains from the stock sales would eventually flow to
the ultimate owner, who has the discretion to consume or dispose or reinvest. If this assumption held, the residence
of the ultimate stockowner dominated such discretion
7 In CIR v Lever Bros & Unilever Ltd 1946 AD 441, 14 SATC 1
Brief Facts: To protect certain American assets held by Unilever in Holland at the outbreak of the Second World War, a South
African company was formed, which acquired shares in the United States companies as well as the related loan account,
which arose when the Dutch company itself acquired the American shares from Lever Brothers in the United Kingdom
(UK). The South African company therefore received dividends from America and used these dividends to pay the
interest on its loan account to Lever Brothers UK. The Commissioner for Inland Revenue said that the interest, which
accrued to Lever Brothers UK, was from a South African source.
Held: The source or originating cause of interest payable on a loan of money was not the debt but the services that the lender performs to the
borrower, namely, the supply of credit, in return for which the borrower pays him interest. An investor in interest-bearing securities is
in all respects the same as a lender of money as he is paid for the services that he performs to the borrower, being the supply of credit.
Thus the true source of interest from an interest-bearing security is, in terms of the Lever Bros case, also the provision of the credit.
This would be the place where the money for the investment was actually handed over. Therefore non-residents making investments
in interest-bearing securities in the Republic will cause the resulting interest to be from a Republic source.
There was no obvious reason other than the administrative concerns that residence, rather than the origin should
be the predominant element in connection with economic allegiance in the capital gains from stock sales. This
conclusion differs from the conclusion ofthe 1923 Report which focuses on the income from stock rather than that
from stock sales, which are not necessarily the same.
Following Carroll's 1940 Draft, the source rule for capital gains from the sales or exchange of capital assets
proposed in the 1940 Hague Draft did not change much other than to split the gains from sales or exchange
of personal property other than real property into two paragraphs: Article 12(2) business property and Article
12(3) other capital assets. Notably, Article 12(3) of the 1940 Hague Draft refers to the applicable source rule as
"in conformity with the provision of Article 12", i.e. literally the article itself. Therefore, Article 12(3) does not
explicitly provide an answer to the source rule for capital gains from sale of other capital assets. This provision
created an ambiguous circle when one tries to understand what should be specifically applied.
The 1940 Mexico Draft made some minor amendments to Article 12(3) to address the above ambiguity by
attributing the exclusive right to tax to the "state of the fiscal domicile of the recipient Due to World War II," In the
1943 (1940) Mexico Draft was mainly negotiated by the countries in the Americas, including many less-developed
Latin American countries, like Argentina, Peru, and Chile (Fiscal Committee, 1945).
Latin American countries still wanted to reserve against the broad catchall capital gains provision of Article 12(3)
of the 1940 Mexico Draft which attributed the exclusive right to tax to the "state of the fiscal domicile of the
recipient" (Fiscal Committee, 1946). In fact, Chile and Mexico, as OECD members, still made reservations to the
2010 OECD Model Tax Convention on capital gains from certain sales or exchange of resident companies' stock.
After World War II, European countries reviewed the 1943 Mexico Draft in which source countries were able to
reserve the right to tax capital gains therein. Mexico was the only Latin American country which participated in the
negotiation. The Fiscal Committee under the League of Nations acknowledged apparently different membership
of the group negotiating the 1943 (1940) Mexico Draft and the 1946 meetings in London, but also believed that
work done before "could be usefully reviewed and developed by a balanced group representing capital importing
and capital-exporting countries and from economically-advanced and less advanced countries" when the League
of Nations transitioned its work to the United Nations (London Report, 1946).
Unsurprisingly, the 1946 London Draft recovered Article 12(3) of the 1940 Mexico Draft, attributing the exclusive
right to tax capital gains from capital assets other than real property and business property to the country in which
the recipient had his "Fiscal domicile" .
After the OECD officially superseded the OEEC in 1961, the work expanded to the elimination of double taxation
among more member countries. Nevertheless, at least in the capital gains tax area, the spirit of the 1946 London
Draft has never gone far away from the subsequent versions of the OECD Model Tax Convention on Income and
on Capital. The traditional catchall rule favoring the residence country since 1940 still can be found in Article 13(5)
of the 2010 OECD Model.
Surrey (1980) argues that, there are two types of capital gains from stock sales. The first type is sale of stock directly
or indirectly representing a real property interest in the situs country of the real property, which in substance is a
traditional sale of real property (U.N. Model, 1980). Capital gains from this type of stock sale should be sourced to
the situs country of the real property without much dispute. The second type is sale of stock representing a certain
percentage of participation in a company, which is a resident of the source country. Many developing countries
actually advocated the right to tax the gains from the sale of stock of a resident company regardless of whether the
sale took place within their territories. However, Surrey (1980) did not show the generation of capital gains tax
where this research aims at filling such a gap (see table 1 and 2).
Meskin et al (1994), Van der Merwe et al (1995) in their work argue that various rules apply, depending on whether
or not the shares are listed on the stock exchange. The transfer of ownership in shares is articulated by means of
cession, independent of the delivery of the relevant documents; the work of Van der Merwe et al (1995) had similar
thoughts. Moreover, Van der Merwe (1989) argues that the asset should be capable of being subject to ownership,
i.e. it should be res in commercio. Likewise, Kleyn, Boraine and Du Plessis (1987) argue that these are assets that
can be privately owned or that can be objects of other real rights. However, these researchers were not able to show
the potential of capital gains tax in multinational ventures and taxing rights thereof. This research aims at filing
this gap.
Van der Merwe (1989) argues that the transferor should be capable of transferring ownership in order to preserve
room for the taxability of capital gains and capacity to contract. A transferee that does not have the necessary legal
capacity should be assisted by a person that has proper legal capacity in respect of the transferee. Because a person
cannot transfer more rights than he himself has (nemo plus juris-rule), the transferor generally has to be the owner
in order for the transferee to acquire ownership, unless the transferor acts with the consent ofthe owner; this is alsq
found in the work of Mostert, Joubert and Viljoen (1972). However, Van der Merwe (1989) have not been able to
show, to what extent such assistance could enhance compliance relating to the taxing rights on capital gains; this
research is expected to fill this gap.
In the case of Weeks & Another v Amalgamated Agencies Ltd (1920) it was held inter alia that the transferor should
have the intention to transfer ownership in the asset and the transferee should have the intention of acquiring
ownership in the asset and this was also found in the literature by Van Jaarsveld et al (1992); Van der Merwe
(1989). However, their findings could not be able to articulate the fact that capital gains on the transfer of assets
have to be accordingly collected.
RESEARCH METHODOLOGY
This research paper consists of methods such as analysis, and synthesis and qualitative and quantitative research
methods. These methods were used so as to put in place significant results that bear implications in the legal
framework. Time-series data from Tanzania for the period of 1998 to 2012 have been developed.
Research Hypothesis
This research paper has two research hypotheses; the Null Hypothesis and Alternative Hypothesis in testing as to
whether ITA Cap 332 preserves taxing rights, in that; Hypothesis 1= the Income Tax Act Cap 332 has been able to
preserve taxing rights for the mining companies in multinational transactions; and Hypothesis 2= the Income Tax
Act, Cap 332 has not been able to preserve taxing rights for the mining companies in multinational transactions.
The ANOVA determines P-Value from the F-Statistics by testing these hypotheses. The ANOVA tests on the
assumptions that each group is approximately normal and Standard Deviation of each group are approximately
equal.
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We explore the optimal revenue generation profile in testing as to whether high tax rate on capital gains has been
causer for capital gains tax avoidance. In that; let wand x stand for true and declared income respectively. The
risk-averse mining company's problem is to maximize its expected utility so as it can maximize the profits through
non-payment of the capital gains tax:
ElU]= (1- pp(w-t(x) +PU(w - t(x) - F(t(w) -t(x))) ............... .......... ............................(1)
By optimally we have to choose x . In this model P is the likelihood for the mining company involved in evading
or avoiding payment of capital gains getting caught, F is the fine rate when (F > 1), and t(x) is a general well-
behaved tax function with t'(x) > 0 and t"(x) > O. The symbols 'and" stand for the corresponding first and second
derivatives, respectively. The mining company with zero income owes no taxes to the government. It is obvious
that the termF(t(w) Dt(x)) stands for the total penalty that the TRAmay impose when mining company in default
is caught. Thus, the first-order condition is:
aE[U] = -(1- p
ax
P' (Y)t' (x) - pU' (Z)(1- F)t' (x) = 0... ............... .................... ............... ...... (2)
Where Y == w - t(x) and Z == w - t(x) - F (t (w) - t(x)) Expression (2) can be re-written as;
- (l -p) U'(Y) - p (I-F) U ' (Z) = 0, which is consonant which could observe that:
2
a E[U] =D = (1 - p)[U' (Y)(t' (X))2 - U' (Y)t' (x) J+ p[U' (Z)(I - F)t' (X)2 +U' (Z)(F -1)t' (x) J
aX
.. ....... .... ... .. .. .. .. .... ... ... .... .. . .. ..... . .. .. .. .. .. .... .. ... .... .. . ....... ... ...... ..... ... ...... ... (3)
Utilizing the first-order condition reduces (3) to :
D =(1- p)U'(Y)(t' (X))2 +pU' (Z)((1- F)t' (x)f ..................................... ......................... ...(4')
This is always negative. It is straightforward to show that the conditions for an interior solution can be simplified
as:U'(w) p(F-l)
- - -< ............................ ........................................................................... (5)
U(w-F:(w) I-p
pF <1.................................................................................................................................... (6)
Equations (5) and (6) are identical to conditions (6')* and (7')*, respectively. From (2) and (3) it can be established
that;
dx ((xH ' , ]
- = P- lU (Z)(t(W)-t(x))(F -l)-U (Z) >0 ..............................................................(7)
aF D
and ax =_t(x)[U'(Y)+U'(Z)(F -1)]>0 .............................................................................(8)
ap D
To find out the relationship between the tax rate increase and declared capital gains, and to consider a non-uniform
variation in the tax schedule, present the tax function for the initial amount of declared income and the true income
level as t(x) + f(x) and trw) + v(w), wheref(x) and v(w) are the respective income-dependent shift functions. Now,
for the sake of illustration takef(x) and v(x) as T x and ET w, respectively, where T is a shift parameter, augmented in
the latter case by a constant :::;1. Therefore, consider now differentiating (2) with respect to T (and then evaluating
the result at T = 0), recalling that; - (I -p) U' (Y) - P (I -F) U' (Z) is zero, and performing some algebra, results in the
following; aX I t (x) ,
n {J ] }
aF 1=0 = U(Y)(l- p) .tLRA(Z) - RA(y) +F(w- X)RA(Z) ....................................(9)
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e,
Where RA (0) == _U" (o)/U'(o) Note that RA (Y) < RA (Z). It follows that (9) is positive. Whereby t'(x) = which
would also make (9) positive. The sign of (9') is clearly abstruse. Instinctively, when an increase in the tax rate
at the taxpayer's optimum is concomitant with a smaller relative rise in the end-point of the tax rate bracket, then
total penalty payments essentially decrease at the initial amount of declared income, creating more incentives to
tax evasion than before.
EMPIRICAL FINDINGS
Table 4 shows shares of the Government of URT in mineral sector which would have to be affected upon no
collection of capital gains tax if had to be sold offshore under the prevailing legal framework and Table 5 and 6
show other portfolio ventures. Tanzania holds shares in five companies with respect to the mines owned by them,
two of which are through STAMICO, two through NDC and one directly through Treasury Registrar. In Table 4,
Tanzania has lower shareholding interest from Mchuchuma-Liganga Iron Ore under Sichuan Hongda Group Ltd of
China while the higher shareholding interest is from Buckleef Gold Resources under Tanzania Exploration Royalty
Ltd.
For the entire list of the companies under study, no regulations in place that prescribe the minimum shareholding
requirement and procedure of which such companies would be selling shares to the Tanzania nationals, in
accordance with the provisions of the Capital Market and Securities Act, Cap 79 offering shares to the public and
as stipulated under Section 109 of the Mining Act, No 14 of 2010. Likewise, Tanzania has no control of either of
the companies because holds less than fifty per centum by virtue of Section 110(3) (a) (i) despite ofTanzanite One-
URT Unincorporated Joint Venture in the Mining Licence No 290 (50%-50%) at Merelani Block C.
Under ceteris paribus, there were capital gains revenue synergies amounting to USD 305,404,121.00 which was'
not subjected to the collection due to the absence of taxing rights in the DTAs and ITA Cap 332; and there was also
capital loss ofUSD 50,059,245.02 emanated from the disposal ofDTP asset to GGM, this disposal was made with
no consideration to the subsidiary company (Table 7). Likewise, Afrika Mashariki Gold Mine filed objection to the
court objecting the decision of the tax assessment. TRA failed and has not been able to collect the capital gains tax
from offshore sale of shares. In the same vein, Tanzania sought in court $196 million in capital gains tax following
Moscow-based ARMZ Uranium Holdi.ng Co. 's acquisition of Perth, Australia-based Mantra Resources Ltd, where
Tanzanian owns the Mkuju River uranium project. TRA imposed tax based on the fact that the mine is operating
within Tanzania.
ABG absconded to dispose its shares due to lack of due diligence. Through such judicial decisions apart from
enactment of the Finance Act, 2012, the taxing rights may not be adequately addressed as legal transfer of shares
but it must be stamped in order to justify that ownership has changed. Moreover, Tanzania is still facing problems
regarding the exchange of information in tax matters which could possibly obstruct collection of capital gains.
Research Hypothesis-Results
In Table 8 from our Hypothesis testing results, because P-Value of 0.315029 is greater than 0.15 we can conclude
that they are significantly different. The best forecasting for each company's capital gains tax would be reflected
by the groups' mean ofUSD 197,931,138.90. Hence, the P-Value of 0.315029 indicates that we reject the Null
Hypothesis and conclude that the Income Tax Act, Cap 332 has not been able to collect capital gains tax prior to
enactment of Finance Act, 2012. Hence, Capital Gains have a significant influence on the capital gains tax. This
is supported by the large F Statistic of 1.099 which indicates that there is no capital gains tax collected in offshore
sale of shares. Hence, there is more difference between group in favour of Null Hypothesis than within group .
Recommendation
Moreover, ITA Cap 332 has no specific provision guiding for the capital gains tax in offshore market apart from
enacting the Finance Act, 2012; the enforcement mechanism pertaining to the signing the DTAs including more
specifically exchange of information on tax matters have been the causer for non-collection of capital gains tax
thereby reducing tax net and constricting the tax base. The eventual triumph of a capital gains tax depends on its
legal framework and enforcement. As with any government legal structure, we must adopt the taxing rights for
achieving perfection just as much as we embrace the positive role that government can play in making revenue
motives significantly noble.
LIST OF TABLES
Table 1: Conventional Matrix on the Comparative Advantages of the Residence and Source Rules
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mainly passive and investment income over which a taxpayer has little or no control. The substantive approach
aimed to ascertain the economic substance of the income by including mainly active income over which a
taxpayer has active control.
1946 The Draft Model Convention gave rights to the residence countries to tax capital gains in as proposed by the
League of Nations in London (hereinafter known as the " 1946 London Draft") in the absence of most source
country representatives. As a result, capital gains became taxable only in the residence country of the recipient.
~~~, 1963 - The 1963 Draft Double Taxation Convention on Income and on Capital proposed by the OECD (hereinafter
known as the "1963 OECD Model") adopted the same source rule. Later on, many developing countries, having
I r "" ... / growing capital imports, advocated for the right to tax capital gains from stock sales, which was largely reserved
by the residence countries.
1980 The Parties opposing a source taxation rule and those accepting it reached a temporary compromise in the 1980
United Nations Model Double Taxation Convention between Developed and Developing Countries (hereinafter
-lOS ~~ known as the "1980 U.N. Model"). Article 13 of the 1980 U.N. Model provided the source country with great
~~~
discretion in stipulating domestic rules for taxing gains from stock sales, and as a result, many countries taxed
capital gains from stock sales by nomesidents, including some indirect stock sales.
1981 Introduction of New Source Rule in US. Model, 1981
~.::. 2003 Special Source Rule was Introduced by the OECD Model, in the situs countries
.~~T:
2000-2008 The Tanzania-Agreements on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect
to Income Tax with Egypt, Iran, India, Russia, England, Canada, South Africa, Botswana(To mention the few)
i adopted the Source Rule under ITA Cap 332
I
Table 4: Shares of the Government of the URT in Mineral Sector.
Mbeya Cement Coy subsidiary of the Lafarge 65% Treasury 25% 35% France (Acquisition of Shares
Ltd Group and NSSF
10%
Tanzanite One URT & TanzaniteOne 50% STAMICO 50% Joint-Venture (Shareholding interest on
~ Ivfji
Mining Ltd Mining Ltd Mining License)
..-It. /"
Source:
Mineral Tax Clinic-The Reflection of Old and New Fiscal Regimes for Effective Tax Auditing in Tanzania (Mafwen ga H.M2012)
Serial Acquired Company Original Owner Acquirer Company Amount of Revenue Synergies
No (A) (B) (C) Acquisition (in USD! (Capital Gains) (in
TZS/uSD) USD)
(D) E=D*20%
1 Mantra (T) Limited URT(100%) ARMZ Uranium Holding 980,000,000.00 196,000,000.00
Coy
2 Afrika Mashariki Gold Placer Dom 100% Barrick Gold Corporation 252,400,000.00 50,480,000.00
Mines 100%
3 WDL (De Beers) De beers (75%): URT
(25%) /;' Petra 75% 10,000,000.00 2,000,000.00
,
5 Nyanza Salt Mines URT (100%) Solid Namac Taam Sirjan Euro 151,860.00(TZS 49,924,112.00
, (pure Vacuum Drier Coy (100%) 262,976,000.00)
4, 1( (PVD) I
6 Kahama Gold Mine URT (100%) then Barrick Gold Corporation 5,000,000.00 1,000,000.00
1"\
Ltd (15% pari pasu) (Bulyanhulu Mine) 100%
Source: Ministry of Energy and Minerals (2013) Currency converted using spot rate as of the date of transfer
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0.40 /
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It:
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0.30 "-"'-.... /
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0.25
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0.20
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Z 0.15 / ~ /I
<C
(!) 0.10 / ~ /1
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COUNTRIES
Mean 0.19
Standard Error 0.044507891
Median 0.15
Mode 0
Standard Deviation 0.172378321
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REFERENCES
Clerk of the National Assembly (ITA CAP 332 R.E 200B) "Income Tax Act, Cap 332"
Curtis et al (200B, p. 15), 'F\ Golden Opportunity; How Tanzania is falling to Benefit from Gold Mining"
Fiscal Committee, (1945), "Model Bilateral Conventions for the Prevention of International Double Taxation
and Fiscal Evasion", Second Regional Tax Conference, Mexico, D.F., July 1943, Series of League of Nations
Fiscal Committee, (1946), "London and Mexico Model Tax Conventions Commentary and Text 69 Series of
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