ZAMBIA Law and Practice Contributed by: Mulenga Chiteba, Constance Namatai Mwango and Bwalya Milunga, Mulenga Mundashi Legal Practitioners
16. Transparency and Confidentiality 16.1 Publication of Information on APAs or Transfer Pricing Audit Outcomes The ZRA does not publish information on APAs or transfer pricing audit outcomes. 16.2 Use of “Secret Comparables” The Transfer Pricing Rules do not prohibit the use of secret comparables. In fact, the ZRA has procured a database for the use of comparables.
Appeals Tribunal erred in rejecting the ZRA’s reliance on Western European comparables outright. Finally, Nestlé’s cross-appeal was dismissed. The Supreme Court found no basis to interfere with the Tri - bunal’s classification of the company as a low-risk dis - tributor and held that the Tribunal had not exceeded its jurisdiction by directing a reassessment. The Supreme Court upheld the ZRA’s position and restored the tax assessment against Nestlé Zambia Limited. 15. Foreign Payment Restrictions 15.1 Restrictions on Outbound Payments Relating to Uncontrolled Transactions Zambia’s Transfer Pricing Rules do not restrict out - bound payments relating to uncontrolled transactions. 15.2 Restrictions on Outbound Payments Relating to Controlled Transactions Zambia’s Transfer Pricing Rules do not restrict out - bound payments relating to controlled transactions. 15.3 Effects of Other Countries’ Legal Restrictions The Transfer Pricing Rules do not provide for rules regarding the effects of other countries’ legal restric - tions.
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