8th Mar 2016 07:55
LONDON (Alliance News) - Acacia Mining PLC Tuesday said it has signed a memorandum of understanding with the Tanzania Revenue Authority after agreeing to start pre-paying corporate tax in 2016.
"We proactively initiated discussions with the Tanzania Revenue Authority 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," said Chief Executive Brad Gordon.
The miner said it will pay around USD5.0 million a quarter under the agreement, or USD20.0 million a year, but said any corporate tax to be paid can be offset against outstanding VAT amounts owed to Acacia in the first instance, with the balance being paid by the company in cash.
Acacia said it has the right to vary or suspend prepayments should the performance or financial position of the business make it necessary.
"We believe this agreement is mutually beneficial for all parties as we receive greater certainty over future VAT receipts and Tanzania sees an earlier corporate tax contribution from Acacia than previously envisaged," said Gordon.
By Joshua Warner; [email protected]; @JoshAlliance
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