Quang Nam calls for Government’s help in settling Besra’s tax arrears
Quang Nam calls for Government’s help in settling Besra’s tax arrears
The authorities of Quang Nam have asked the Prime Minister to instruct relevant ministries and agencies to help the province settle tax arrears of two gold mining factories, Phuoc Son and Bong Mieu Gold Mining Co., Ltd, which are operated by Besra Vietnam, a subsidiary of Canadian Besra Inc.
According to a report dated July 22 by the Chairman of Quang Nam Dinh Van Thu, the local agencies tried their best to make favorable conditions for the operation of the two gold mining firms.
However, these companies’ tax arrears and their debts to service and goods providers are much higher than its financial ability so banks would not give more loans to the gold miners.
The companies did not have capital for business and production activities and could not pay tax arrears. As a result, the Quang Nam Tax Department implemented coercive measures by notifying that the gold mining firms’ invoices were no longer valid. The two companies, therefore, had to halt production in late 2014.
Under the guidance of Deputy Prime Minister Vu Van Ninh in March 2015, Quang Nam considered the case and created conditions for the two gold firms to resume their operation.
By the end of May, the total tax arrears of the two gold companies was over VND384 billion (nearly $19 million), including more than VND296 billion of Phuoc Son and VND88 billion of Bong Mieu. To date the two companies have not presented any measure or commitment on payment of the tax debt.
For Bong Mieu, its tax debt from the beginning of the year to the end of May was over VND17.8 billion (nearly $1 million). The company paid VND5.2 billion; its new tax arrears are over VND12.5 billion.
For Phuoc Son, the company submitted a tax declaration but it did not have new input, output value added tax, and natural resources tax, and it also did not pay the tax arrears.
Notably, last December Bong Mieu gold mining company issued gold selling invoice to Nghia Tin, a private jewelry company based in Tam Ky City, Quang Nam Province, with the value on the invoice of VND107.476 billion, without goods (gold) attached. This case is under investigation.
The Chairman of Quang Nam province proposed to the Prime Minister to tell relevant ministries and agencies to solve this case and the proposals of the two gold mining companies.
The two gold mines, Phuoc Son Gold Company Ltd (PSGC) licensed in 2003 and Bong Mieu Gold Mining Company Ltd (BMGMC) licensed in 1991, were reported to be currently owing the combined sum of VND384 billion in natural resources tax, contractor tax, value added tax, personal income tax, land rental fee, environment protection fee and late payment fines.
Bong Mieu gold mine, commissioned in 2006, is located in Phu Ninh district, while the Phuoc Son site, commissioned in 2011, in Phuoc Son district is considered the largest gold mine in Vietnam.
