Thursday, August 10, 2017
Acacia Mining Plc received a tax bill from the Tanzanian government for $190 billion. Tanzanian officials are claiming that Acacia under-declared revenues from exports. Representatives from Acacia stated that they declared all their revenues and do not owe the massive debt. The mining company reported sales of $1.05 billion last year and $7.7 billion since 2009. Even if the company gave every cent of profit to Tanzania every year, it would take centuries to repay the debt.
This huge tax bill represents another incident in an increasingly unpleasant dispute between the Tanzanian government and the mining company. Acacia stock dropped as much as 17% in response to the news and the company is looking to the possibility of shutting down some of its operations.
See Thomas Biesheuvel, This Miner’s $190 Billion Tax Bill Would Take Centuries to Pay, Bloomberg, July 25, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.