Categories: Stories

Caledonia Mining moves head office from Canada to Jersey to avoid taxes

Canadian-listed Caledonia Mining, which owns Blanket Mine in Zimbabwe, has declared a quarterly dividend of 1.125 cents after moving its head office offshore to avoid taxes on the payments.

Caledonia, which owns 49 percent of Blanket Mine, successfully moved its registration from Canada to tax haven Jersey, Channel Islands, on March 19 this year.

Jersey is one of seven inhabited islands making up the Channel Islands and, along with Guernsey, is a British dependency.

In February, Caledonia said the move would remove Canadian withholding tax on Caledonia’s dividends for non-Canadians. Such a move would reduce travel and compliance costs and simplify its group structure, it added. Shareholders approved the move on February 18.

“The dividend to be paid at the end of April 2016 is the first dividend that Caledonia will pay as a Jersey-domiciled company and will be paid without the deduction of withholding tax.

Caledonia’s dividends are no longer eligible for the purposes of the Income Tax Act (Canada),” it said on Tuesday.

Non-Canadians are subject to a 15 percent withholding tax charge.

Caledonia is one of the few foreign firms to successfully conclude a local ownership transaction in Zimbabwe, having transferred majority control of its 43 000 ounce per year Blanket mine in southern Zimbabwe to indigenous shareholders in 2012.

The Channel Islands, along other tax havens, have come under increased spotlight over their use by wealthy figures in global politics and business in tax evasion and avoidance schemes.

Millions of leaked documents from Panamanian legal and corporate consultancy firm Mossack Fonseca, dubbed the Panama Papers, have exposed an elaborate web of money laundering, tax dodging and evasion of financial sanctions, often using opaque shelf companies registered in tax havens.-The Source

(51 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024