Tanzania Slaps Huge Tax Bill on Acacia

The government of Tanzania has sent Acacia Mining a bill of $190 billion in unpaid taxes and fines for years 2000 to 2017. This comes after the government alleged Acacia underdeclared export revenues. Bulyanhulu Gold Mine Ltd. and Pangea Minerals Ltd., the owners and operators of the Bulyanhulu and Buzwagi mines, respectively, received a series of Notices of Adjusted Assessment from the Tanzania Revenue Authority for historical corporate income tax, covering the periods 2000 to 2017 for Bulyanhulu Gold Mine and 2007 to 2017 for Pangea Minerals. The assessments follow on the findings of the First Presidential Committee, which were announced on May 24 and the Second Presidential Committee announced on June 12.

Acacia continues to refute the findings and said it has fully declared all revenues. The allegations made by the committees are included in the matters that both companies have already referred to international arbitration.

Bulyanhulu Gold Mine owes the government a total of approximately US$154 billion, and Pangea Minerals approximately US$36 billion. There is also a total of US$40 billion of alleged unpaid taxes and approximately US$150 billion of penalties and interest owed.

Acacia said it is considering all of its options and rights and will provide a further update in due course.

As featured in Womp 2017 Vol 08 - www.womp-int.com