Bong Mieu and Phuoc Son gold mines face closure for not paying tax

January 15, 2015 | 16:50

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Two gold mines in the central province of Quang Nam operated by Besra Vietnam, a subsidiary of Canadian Besra Inc., face closure again if the miner can not work out a solution to the payment of their taxes to the local state budget, according to dantri.com.vn.

“The miner and the local authorities will have to come up with a common solution to the long delayed tax payment issue in the coming meeting on January 23,” said Dinh Van Thu, Deputy Chairman of the Quang Nam Provincial People’s Committee. “Besra Vietnam would have to cease mining works if wrongdoings were found.”

According to Thu, the local authorities summoned representatives of the two mines for a meeting with the committee on January 9 but they failed to show up, saying that they were abroad.

The two gold mines, namely 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 VND350 billion ($16.4 million) in natural resources tax, contractor tax, value added tax, personal income tax, land rental fee, environment protection fee and late payment fine.

Besra Vietnam, the operator of the two gold mines, had its bank account frozen and its invoices invalidated in April last year by the Quang Nam Provincial Tax Department as a result. Three months later, Besra suspended operations of these mines, saying the decision came as a direct result of coercive measures taken by the Quang Nam Tax Department. On September 30, operations resumed at the Bong Mieu mine.

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.

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