Besra gets license renewal, close to resolution on tax arrears

March 05, 2014 | 14:42

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Besra has received a renewal on its license to export gold from Vietnam.

The license, issued by the State Bank of Vietnam, allows the company to export gold from its operations in the central province of Quang Nam.

CEO John Seton said, “Despite spirited debates with various levels of government on a range of tax and royalty issues over the last year, we have reached an agreement and nearing resolution on most matters. The retrospective tax assessment is expected to be resolved in Besra’s favour next month.”

“We are grateful for the ongoing support of the government of Vietnam in our current and future operations,” he added.

The company received the license renewal while awaiting the final decision on the collection of tax arrears for its two gold production companies in Vietnam.

Earlier in April 2013, the General Department of Customs (GDC) alleged after an inspection that Phuoc Son Gold Company and Bong Mieu Gold Mining Company, Besra’s two entities in Quang Nam, had failed to provide certification to prove they had met the 99.99 per cent pureness minimum standard for gold quality during the December 26, 2007 to December 26, 2012 period.

As such, the firms were allegedly not eligible for the zero per cent tax rate they were enjoying. Bong Mieu was asked to pay VND47 billion ($2.26 million) and Phuoc Son VND202.6 billion ($9.7 million) in back taxes.

By By Nguyen Trang

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