Canadian gold miner suspends operations in Vietnam over $14mn tax debts
Canadian gold miner suspends operations in Vietnam over $14mn tax debts
Canadian gold miner Besra Gold Inc has suspended operations at two mining sites in central Vietnam, removing more than 1,000 local laborers from their jobs because it still owes over US$14 million in taxes.
Mining activities at the Bong Mieu mine in Quang Nam Province were shut down on July 18, and the nearby Phuoc Son site followed suit on Tuesday, the Toronto-based company said in a statement released on Wednesday.
The suspensions came as “a direct result of coercive measures taken by the provincial Quang Nam Tax Department,” the document reads.
More than 1,000 Besra employees will temporarily lose their jobs following the operation shutdown, pending the lift on coercive measures, the company said.
The Bong Mieu gold mine is located in Phu Ninh District, while the Phuoc Son site in Phuoc Son District is considered the largest gold mine in Vietnam.
The Canadian gold miner has called on local authorities in Phuoc Son and Phu Ninh Districts to assist the company’s force in ensuring security at the sites during suspension.
Besra Vietnam, the operator of the two gold mines, has had its bank account frozen and its invoices invalidated since April by the Quang Nam taxman over VND300 billion ($14.12 million) tax arrears, according to Dan Tri newswire.
The unpaid duties include natural resources, corporate income, and individual income taxes.
The Quang Nam tax department has reminded Besra Vietnam of its debts every month since 2012, but efforts were in vain, leading to the coercive measures being enacted, Dan Tri reported.
If the applied measures still fail to be effective, the tax department will continue with even stricter actions, including sealing assets of the company or calling on higher authorities to revoke its license.
Besra said in its statement that the company continues “to seek a lifting of the coercive measures as soon as possible” amid what it deems a “very unfortunate set of circumstances.”
The gold miner claimed to have received support from “both provincial and national governments that want Bong Mieu and Phuoc Son to operate.”
“Activity at both sites will resume once Besra is able to operate freely without coercion,” the company said, adding it expects the situation to be rectified shortly.
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