Johnson Progress

Delta Corporation Limited, a leading beverage maker, has accused tax authorities of creating legislative uncertainty that is affecting its business operations.

In its annual report for the period ended March 31, 2025, Delta expressed concerns over the tax authorities’ practice of creating legislative positions through public notices without enabling legislation.

According to Delta, this practice contributes to uncertainties, particularly when the company’s tax positions differ from those of the authorities.

As Delta noted, “A growing concern is the tax authorities’ practice of creating their legislative positions through public notices, which may not be supported by enabling legislation.”

The company highlighted the challenges of navigating complex and inconsistent legislative changes, particularly regarding currency management and tax obligations.

Delta stated that the transition to the use of a local currency, followed by the reintroduction of multi-currency trading, was not accompanied by clearly defined transitional tax measures.

“This lack of clarity, along with complex and inconsistent legislative changes regarding the currency used for the settlement of certain tax obligations, has created significant challenges for businesses,” Delta said.

The company also expressed concerns over the policy environment, which remains unpredictable and impacts its ability to plan for the future.

“The policy environment remains unpredictable and impacts our ability to plan for the future,” Delta said, citing issues related to currency management, exchange control, and bank use policies.

Delta’s tax burden has been significant, with the company paying US$254.15 million in confirmed taxes for the year.

The company is also appealing additional tax assessments of US$74.8 million, which would bring the total tax paid to US$329 million.

“These taxation and legislative challenges necessitate careful navigation and robust tax planning to mitigate their impact on our business operations and financial performance,” Delta noted.

The company’s revenue for the period under review was US$807.47 million, up 5% from the prior year, despite the challenges posed by tax burdens and policy uncertainty .