THE mining sector taxation system has loopholes that could result in mining companies operating in the country committing tax fraud, a new study has shown.

According to "The Extractive Industry in Zimbabwe: An Evaluation of Trends in Corporate Social Investments, Taxes Paid, Stakeholder Participation and Linkages to Service Delivery of Local Authorities (2009-2014)" report, regulatory authorities themselves feel that the taxing system for the mining sector could be tighter.

The report was carried out by the Institute for Sustainability Africa in conjunction with Oxfam.

Reads part of the report: "Interviews with the regulatory authorities indicated major concern on transfer pricing, trade mis-pricing, over invoicing of imports and under invoicing of exports by extractive companies as major issues contributing to tax avoidance.