The PWYP-SA coalition
is focused on transparency and accountability in order to combat opacity, in its various forms (financial and non-financial) across the extractives value chain.
PWYP South Africa works to get the buy-in of government into the need to legislate reporting standards mandating country-by-country reporting up to project level. The recent Global Reporting Initiative and the G4 guidelines suggest practical approaches to disclosing information that is relevant to users and can be used to hold companies accountable. These include the operational information of corporations, the applicable policies and standards, the values and principles guiding the operation of corporations, and disclosures demonstrating the implementation of stated objectives. Stated guidelines for integrated reporting are honesty, completeness, timeliness, accessibility and accuracy. Country-by-country reporting in EIs is expected to result in more remission of tax revenue to government, thereby potentially economically benefiting social and economic development. In this way, tax incentives in the EIs become morally justifiable and politically acceptable. Secondly, government’s current generous tax incentive for gold and uranium mining companies include exempting capital expenditures from being taxed in the year in which they occurred, and pegging withholding tax on net dividends and capital gains tax at 15 per cent and 14 per cent, respectively. This means that South Africa has very low METR on capital investments, translating to equally very low tax remissions inflows to SARS revenue basket. This further translates to equally higher dividends from the South African operations compared to operations in other countries.