gold update, page-14

Comforting to see Australia's mining profit tax is in line with the likes of Mongolia and Kazakhstan!


http://www.akipress.com/_en_news.php?id=107401

Commission to study introduction of special tax on profits of gold mining companies in Kyrgyzstan studies profitability of enterprisesBishkek (AKIpress) - "The Ministry of Economy and Antimonpoly policy is considering several options on the issue of raising the sales tax rate on profits of gold mining companies, taking into account the fact that the profitability of the companies is different: "Kumtor Operating Company” has high profitability, while Makmal gold combine has high costs and, respectively, low profitability," head of the Department of Tax Policy of the Ministry of Economy and Antimonopoly policyKuban Aidaraliev told Tazabek publication on March 26.

The process of mechanism of taking percentage part of profits is difficult. "The price of gold is rising, then falling, as now," said Aidaraliev.

He informed that the working group studied the international experience of introducing special tax on profits of companies. "Mongolia, Kazakhstan, Australia and others have enough experience in introducing special tax on profits of companies. There is a problem of control over financial reporting of companies, so it is easy for companies to inflate the costs of manufacture and purchase of equipment, and then hide the profits," said the head of the department.

Many mining companies carry out the refining of gold in Kazakhstan, as local Kara-Balta refinery can not always distinguish gold, when components require the use of such technologies as smelting, noted Aidaraliev.

It is difficult to control the profits of gold mining companies because of these features.