Two gold mining firms asked to pay VND250 billion in taxes

VietNamNet Bridge – Officials of the Bong Mieu gold mining company in Phu Ninh district and Phuoc Son Gold Company in Phuoc Son district of the central province of Quang Nam, on July 1 said that they had asked the customs office to reconsider the export tax of nearly VND250 billion ($12 million).

A bar of gold for export of Bong Mieu Company.A bar of gold for export of Bong Mieu Company.

Previously, the customs authorities performed post-customs clearance inspection at the two firms and found out that the real gold content of the batches for export from December 26, 2007 to December 26, 2012, by the companies was different from their declarations.

The two gold miners are accused of falsely declaring the gold content to enjoy export tax rate of zero percent. The customs agency asked the companies to pay addition taxes of nearly VND250 billion, including approximately VND47 billion ($2.3 million) from the Bong Mieu company and VND202.6 billion ($10 million) from the Phuoc Son Company.

Phuoc Son Gold Mining Limited is a joint venture between Besra Gold Corporation (formerly Olympus Pacific Minerals Group) of Canada with the Quang Nam Mineral Industry Company. This project was licensed in October 2003.

The project has a registered capital of $10 million with a 30-year duration. The equity ratio is 85 percent for the foreign partner and 15 percent for the Vietnamese partner. During operation, the Vietnamese partner has the right to purchase the shares of the foreign partner to achieve at least 30 percent of legal capital.

Bong Mieu Gold Company is a “tripartite joint venture” among Olympus Pacific Minerals of Canada with two Vietnamese partners – Mineral Development Company and Quang Nam Mineral Industry Company. The firm was licensed to explore the Bong Mieu gold mine in 25 years in an area of approximately 32km in March 1991.

M. Thu

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