To: Att: Honorable Aaddee Meskerem Debebe
In the Rank of Vice President, Head of Oromia Revenues Bureau
Finfinne, Ethiopia
Re: Construction Works of Robe-Gasera-Ginir Design and Build Road Project Contract
1: Robe-Gassera-Km 60+000
Subject: Employee Income Tax and Pension Contribution
Dear Sir,
It’s to be recalled that a Contract Agreement was made on July 3 rd, 2017 between Ethiopian Roads
Administration (named as ‘the Employer’) and Afro-Tsion Construction Plc in Joint Venture (JV) with
RAMA Construction Plc (together named as ‘the Contractor’) for the construction of the captioned
project Works.
In the JV agreement in the contract agreement of the project, the agreed percentage proportion for
joint venture is 70% Afro Tsion Construction Plc and 30% Rama Construction Plc with Afro Tsion
Construction Plc as leading company of the joint venture. Accordingly, Afro Tsion Construction Plc
has complied all tax regulation during his responsibility time and the responsibility of leading the
joint venture company was shifted to Rama Construction Plc on January 15, 2021 as discussed below
in detail with supporting documents:
1. The agreed percentage proportion for joint venture is 70% for Afro Tsion Construction Plc
and 30% for Rama Construction Plc with Afro Tsion Construction Plc as leading company of
the joint venture (JV Contract agreement is attached)
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2. The responsibility of leading the joint venture was shifted to Rama Construction Plc on
January 15, 2021 to execute his 30% portion and manages all expenditures including
government tax to comply with.
3. As a leading joint venture executing his 30% portion, Rama Construction Plc is responsible
for the delayed government tax while effecting the payroll payment of the Employee
4. Rama Construction Plc promised to effect the same many times from ERA collections and
failed on his own reasons (Please refer the attached Correspondences)
5. Afro-Tsion Construction Plc even agreed for settlement of employee income tax from
payment of ETB 9.3million from maintenance works executed by Afro Tsion resources in
Robe-Gasera-Ginir-Contract-2 project (Please refer the attached Correspondences)
Noting the above points, we kindly request Oromia Revenues Bureau to call the outstanding
employee income tax and pension contribution from the responsible party, I.e. Rama
Construction Plc.
We appreciate your understanding and consideration in this matter and the contractor is ready to
discuss this further or to schedule a meeting at your convenience.
Sincerely yours,
Enclosed: ____ supporting documents
CC:
1. East Bale Zone Revenues Bureau
Bale Robe
2. Gasera Woreda Revenues Bureau
Gasera
3. File
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