Tanzanian Government Assesses Mining Company with Tax Bill Four Times Larger Than Annual GDP

By:
Chris Gaetano
Published Date:
Jul 25, 2017
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The government of Tanzania has levied a tax bill against a British mining firm digging gold there that is four times larger than the country's entire economy, according to CNN Money. The firm, Acacia, has been ordered to pay $40 billion in back taxes plus $150 billion in penalties and interest, a sum far larger than the $47 billion annual GDP of Tanzania itself. The levy comes shortly after a government audit of the mining industry found that the company had underdeclared revenues and tax payments for many years, according to Reuters, though Acaia has disputed the results. The audit also found that the company was not registered to operate in the country, and that as a result the country lost about $49 billion in revenue from exports of gold and copper concentrates over 19 years, said Reuters. The audit committee also said that the company had 10 times more gold in its containers than the company had declared, in addition to other undeclared minerals like iron and sulphur. The tax bill is part of a wider effort on the part of Tanzanian President John Magufuli, who has pledged to get mining firms to pay more taxes and has threatened to shut all the mines down if the company doesn't pay the fee. 

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