JOHANNESBURG (miningweekly.com) – Gold miner Acacia Mining has started paying corporate tax under a memorandum of understanding (MoU) with the Tanzania Revenue Authority (TRA).
“We proactively initiated discussions with the TRA in 2015 as we believe that our business is of a scale and maturity that it should be paying a fair level of corporate taxes as part of our contribution to the Tanzanian economy.
“We believe this agreement is mutually beneficial for all parties as we receive greater certainty over future value-added tax (VAT) receipts and Tanzania sees an earlier corporate tax contribution from Acacia than previously envisaged,” said CEO Brad Gordon.
The MoU set out a quarterly tax payment of $5-million, with the first payment for this year already made.
Under the terms of the MoU, in the first instance any corporate tax to be paid can be offset against outstanding VAT amounts owed to Acacia, the outstanding balance would be paid in cash.
Likewise, Acacia had the right to vary or suspend prepayments should the performance or financial position of the business make it necessary.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
