This Miner’s $190 Billion Tax Bill Would Take Centuries to Pay – by Thomas Biesheuvel (Bloomberg News – July 24, 2017)

https://www.bloomberg.com/

Tanzania sent Acacia Mining Plc a tax bill equal to almost two centuries worth of the gold producer’s revenue.

The government issued the company, which mines all of its gold in the African country, with a $40 billion tax bill and another $150 billion in interest and penalties, Acacia said in a statement Monday. The charge covers alleged under-declared export revenues from the Bulyanhulu and Buzwagi mines over periods between 2000 and 2017.

Acacia reiterated that it has fully declared all revenues. The stock sank as much as 17 percent on Tuesday to the lowest since December 2013. In just three days, the company has lost 42 percent of its value.

The giant tax bill is the latest twist in an increasingly ugly spat between the government and Acacia. In March, Tanzania banned exports of unprocessed gold and copper, a move Acacia said is costing it about $1 million a day in lost revenue. The situation escalated when the government accused the firm of operating illegally in the country and said mine operators had been evading taxes.

“The company is considering all of its options and rights and will provide a further update in due course,” Acacia said in the statement. To put the size of the bill in perspective, Acacia, which is majority owned by Barrick Gold Corp., had total revenues of $1.05 billion last year and has reported sales of a total of $7.7 billion since 2009.

For the rest of this article: https://www.bloomberg.com/news/articles/2017-07-24/acacia-gets-190-billion-tax-bill-it-would-take-centuries-to-pay

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