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Acacia Mining Plc last year dropped to $ 186 million from $ 214 million in the previous year, signaling the impact of its conflict with the John Magufuli administration
The Magufuli administration stopped it and exported it to a $ 190 billion tax bill over underdeclared gold exports.
Acacia paid Tanzania $ 80.5 million in income tax and royalties in 2017 from its three projects – Bulyanhulu, North Mara and Buzwagi, a 37 percent decline from the $ 128 million paid out in 2016.
But as the firm and the government continues to negotiate the tax claim, the mine has scaled down operations in one of its mines.
Jaco Maritz, Acacia chief finance officer, said the company's overall contribution increased by 10 per cent to $ 202 million in 2017, mainly due to a significant increase in net indirect taxes that ar
"Excluding the Impact of the Indirect Taxes, which is the result of the current dispute in Tanzania, which means that sales of gold concentrate were significantly lower than the previous year, and ultimately reduced to "The majority of our contribution continues, however, to be made through joint ventures, where our partner holds the relevant project licensing."
in their name and, as such, we are unable to report on their behalf.
While our contribution to the countries is growing, it is our hope that our interests in these projects will grow and progress over time, with resulting benefits to them in years to come, "Mr. Maritiz said.
] An audit report of Acacia Mining's total contributions in Tanzania for 2016 by EY showed that its total direct, indirect, and induced economic contribution in 2017 comprised 33,500 jobs, $ 345 million of labor income, and $ 712 million of value added to GDP. [19659004ThetotalofdirectindirectandpaidtaxespaidbyAcaciaitsemployeessuppliersandotherrelatedbusinessesAcacia'stotaltaxcontributionin2017wasestimatedat$186million
In 2016, Acacia and its employees $ 167 million in taxes and royalties.
The firm alone incurred nearly $ 128 million in taxes and royalties, approximately 80 per cent of which was related to income taxes and royalties, while the remaining 20 per cent was related to unrecovered VAT, Customs and excise taxes, payroll taxes, and other levies.
Of this, $ 14 million in corporate income tax assessment.
Last week, Barrick Gold firm holding company, which holds a 64 per cent stake in Acacia, said that they were about to have discussions with the Tanzanian government to resolve the dispute and final agreements had been drafted.
"In order to allow the process to continue in an arbitrary manner" deadline, the company is not providing a timetable for the completion of the discussions at this time, "Barrick Gold said in a statement.
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