13 November 2017

Tanzania: Mining Firm Gets Tax Refunds

Government has started paying corporate outstanding tax refunds signifying its commitment to lay down good relationship with the private sector.

In the recent years the corporates have been expressing concern over delays by the government on Value Added Tax saying their businesses were being financially suffering.

However, Shanta Gold, the East Africa-focused gold producer, last week informed its shareholders that the government has paid 3.4 million US dollars outstanding refunds.

"Shanta Gold is pleased to announce that it has received a VAT refund of 3.4 million US dollars," the gold firm said in statement.

The payment was made up of a 1.9 million US dollars offset against corporate taxes payable in 2016 and 2017 and a cash payment to the Shanta Gold of 1.5 million US dollars. The current VAT receivable, according to Shanta Gold, balance has reduced to 13.4 million US dollars.

The last time Shanta Gold received was last April, ever since until last week being a year and half. "No VAT was returned to Shanta during the [period]," Shanta said in Q1 financial statement.

The company said then was discussing with the government around progressing the refunding of VAT. The gold miner also wanted to offset corporate tax payments against government approved VAT refunds due to the company.

"As a result of the large sum now outstanding in VAT refunds, the company continues to defer non-essential capital expenditure while it completes the development of its underground mine at New Luika," Shanta said.

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