25 July 2017

Tanzania: Acacia Mining Hit With 425tri/ - Tax Bill

Photo: The Citizen
(file photo)

TANZANIA Revenue Authority has issued the Acacia Mining notice to pay the government close to 425.28tri/- (190 billion US dollars) being unpaid taxes, penalties and accrued interest from 17 years of operation in Tanzania, the mining company announced yesterday.

It said in a statement it has been sent a tax bill from the Tanzania Revenue Authority totalling around 190 billion US dollars for unpaid tax and penalties from its Bulyanhulu and Buzwagi mines in the country, which the London-listed company disputes.

The TRA claims a total of approximately 40 billion US dollars of alleged unpaid taxes and approximately 150 billion US dollars of penalties and interest owed, the mining company said.

It said however it disputes the assessments issued in respect of allegations of under-declared export revenue following findings of the First Presidential Committee announced on 24 May 2017 and the Second Presidential Committee announced on 12 June 2017.

"As we have stated previously, Acacia refutes each set of findings and re-iterates that it has fully declared all revenues...Acacia disputes these assessments. The Company is considering all of its options and rights and will provide a further update in due course."

The Tanzania Revenue Authority (TRA) spokesperson, Richard Kayombo declined to comment on the reports saying they do not make public tax payers affairs.

"Tax payer affairs are not made public. We communicate directly with them," he told the 'Daily News' over the phone.

Acacia Mining, the largest gold mining in Tanzania is locked in a bitter dispute with the government over allegations of undervaluation of their exports of mineral exports, tax evasion and operating illegally.

Acacia has refuted the findings and re-iterates that it has fully declared all revenues "and is still yet to receive copies of the reports issued by either of the presidential committees.

" Both subsidiaries, BGML and PML, have already referred these allegations to international arbitration. Shares in the company, at the London stock market are declining and according to Financial Times, the mining company dropped another 10 per cent on Monday after a series of analyst downgrades.

Acacia Mining owns and operates Tanzania's three major mines -- Bulyanhulu, Buzwagi and North Mara. Tanzania is Africa's third-largest gold producer after South Africa, Ghana and Mali.

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