Tanzania hands Acacia Mining $190bn bill for ''unpaid taxes''

Tanzania sent Acacia Mining Plc a tax bill equal to almost two centuries worth of the gold producer’s revenue.

The government issued the company, which mines all of its gold in the African country, with a $40 billion tax bill and another $150 billion in interest and penalties, Acacia said in a statement Monday. The charge covers alleged under-declared export revenues from the Bulyanhulu and Buzwagi mines over periods between 2000 and 2017.

source :: https://www.bloomberg.com/news/articles/2017-07-24/acacia-gets-190-billion-tax-bill-it-would-take-centuries-to-pay

the theatrics of magufool fombe zimefika hapa

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A sum bigger than their GDP

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Watch this space, all miners will start suspending their operations then shutdown. They contribute 25% of government revenues which will now not be available.

In the meantime no investor will be eager to go to Tz anytime soon. Forget the natural gas investment, oil pipeline and SGR.

What he is doing is setting a good example to other miners.

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Is this guy serious?

Kama waliiba pesa ya Wamakufudhi walipe tuuuuu. ’ Mgala muue na haki umpe’ - Hapo makufudhi iko tick. But the consequences za kuharibia cartels biz zitakuandama ma ma ma…

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It is a good precedence. @spear what you said is what the white man key on saying so that they can come rob our continent clean

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I’m all for increased revenue share from miners. However this is just plain stupid from megafool. Demanding $190 Billion from a mine that’s worth less than $ 1 billion is crazy. Here how do you even start negotiating. That signals to everyone that in Tz anything goes, so why invest there.

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Can a Tanzanian mining firm set up business in say the US or in europe?

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That’s an interesting move, but then, who are the big shots behind Acacia mining ?
There are some people in this world ypu don’t wanna mess with.

Its a British company. Mimi hapa I’m happy to let both lose one way or the other.

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Magufuli is a great African Leader, the exploitation of Africa will one day come to an end

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On a different note I came across this

[I]Kwale-based Base Titanium is set to double royalties payable to the government from the current 2.5 per cent to five per cent.

According to the company’s general manager for external affairs and development Joe Schwarz, Base Titanium has agreed in principal with the Ministry of Mining to increase the royalties.

The miner did not, however, give timelines for the planned increase.

“We will be paying royalties at five per cent as soon as we are able to conclude the agreement and wrap that to the mining lease,” said Mr Schwarz in an interview.

The company has to date paid royalties to the government to the tune of Sh1billion. In the last financial year it paid Sh400 million in royalties.[/I]

Let’s do math,these guys paid 2.5%= 400m
Meaning that 100%= 16B
So yes this company made a whooping 16billion revenue last year only and paid Uhuru government only 400million. This is how magufuli makes sense. Let no fool tell me cost of operation because labor is so so cheap . I beg to be challenged

Source : http://www.businessdailyafrica.com/news/Kwale-based-titanium-miner-Base/539546-4026792-uuihr8z/index.html

Only intelligent fellows will get my point and also I don’t think this guy’s are honest when reporting their mines . This is how Africa gets raped .

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Wacha niseme na mapema economics ilinipiga chenga nikiwa chekechea, but, isn’t Royaltes different from Profit (net, gross or any other)? Meaning, the 100% you’re using to calculate unafaa kuelezea yatokana na nini?
Niko radhi kukosolewa

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I know you will come mbio. Let me wait for response from stakeholders here.

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:DUmesema nirudi nilikotoka? Sawa, nimeenda…

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Magufuli tena!

UOTP

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Na please can you get me their profit and loss statement of how much they paid as taxes last year?

If you find it and it’s there for general public to scrutinize since they are mining public resources then I’ll rest my case , but if you can’t find it then I have a valid case. Leo niko home early nangoja

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No no rudi. I meant nilijua utatoka mbio uliko uje ukiona nimequote…tafadhali rudi…

Your argument is similar to one that made someone bring a law to Parliament to slap Sportpesa with 50% profit tax! Just because a corporation is making money is no excuse for government to dry fry it with crippling taxes or unfair royalties.

What I want to see is a strong, profitable private sector in Kenya.

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