20th Feb 2007 07:00
Oxus Gold PLC20 February 2007 news release For immediate release - Tuesday, 20 February 2007 OXUS GOLD PLC Oxus Gold successfully appeals against Uzbek tax claims AGF joint venture liable for approx $1 million claims LONDON: 20 February 2007- Oxus Gold plc ("Oxus" or the "Company") is pleased toreport that the Navoi Regional Economic Court in Uzbekistan has confirmed thatits Amantaytau Goldfields ("AGF") joint venture is not liable to pay varioustaxes, customs duties, fines and penalties imposed on it by the regional tax andcustoms authorities for alleged breaches of tax laws. During August 2006 the regional tax and customs authorities brought a claimagainst AGF for back taxes, customs duties, fines and penalties amounting intotal to approximately $225 million for alleged breaches of the Uzbek tax laws. These claims were upheld by a Navoi regional court at the end of October 2006but, following an appeal by AGF, on 28 December 2006 the Appeal Court allowedAGF's appeal and rejected all the principal claims of the regional taxauthority. As a result, revenue claims, fines and penalties totalling approximately $208million were no longer payable and various restrictions imposed on AGF'soperations as a result of the earlier ruling, were lifted. The regional taxauthority did not appeal this decision within the permitted timeframe and, as aresult, the Appeal Court's decision in AGF's favour is now effective. Further, on 7 February 2007 the Navoi Regional Economic Court (the "Court")rejected the claims of the regional customs authority on the payment by AGF ofcustoms duties amounting to an additional $2 million. On 16 February the Courtalso rejected the claims of the regional tax authority on the payment by AGF oftaxes amounting to approximately $14 million. Based on the foregoing, AGF willnot be required to pay taxes, customs duties, fines and penalties amounting intotal to nearly $224 million. However, the Court did decide that AGF was responsible for the payment ofcertain revenue taxes due, amounting in total to approximately $650,000, andcould also be liable for the payment of some claims for non-residents' incometax amounting approximately to a further $450,000. Oxus has already providedfor a sum within its annual accounts to June 30 2006 to cover its 50% share of apossible outstanding liability of $1.1 million. Bill Trew, CEO of Oxus, said today: "We are pleased to have confirmation fromthe Navoi Regional Economic Court that AGF is not liable to pay the $224 millionin taxes and penalties. It has always been Oxus's policy to work within theframework of the legal and taxation regimes in all the countries where we haveinterests and we strongly believed that AGF had followed that practice. It is arelief to us to have this behind us so that we can focus our efforts on theefficient operation of the AGF oxide plant and the further development of thesulphide operations where there is significant upside potential." END Further enquiries: Oxus Gold plc Tel: + 44 (0)20 7907 2000Richard Wilkins, Company Secretary BanksideKeith Irons Tel: + 44 (0)20 7367 8873Oliver Winters Tel: + 44 (0)20 7367 8874 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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