Business News of Mon, 20 Mar 20175
Goldfields pays 0.5 billion cedis in taxes for 2016
Goldfields Ghana Limited has emerged as the largest taxpayer for the government of Ghana in 2016.
The mining firm paid 501 million cedis (0.5 billion cedis) in direct and indirect taxes to the Ghana Revenue Authority (GRA). Of the amount, Royalties accounted for the highest.
The company paid 196 million cedis in Royalties representing 39.12 percent of the total tax amount. The second highest was Corporate tax which accounted for 159 million cedis representing 32 percent.
This was followed by Pay as you earn (PAYE) and Withholding taxes with 94 million and 52 million cedis respectively. In March 2016, the government granted tax and royalty concessions to Gold Fields Ghana Limited.
This was part of the stability agreement reached after three year talks with the government to ease its tax burden on Gold Fields.
The stability agreement Citi Business News understands will help Gold Fields in saving some 33million dollars at its two mines which will feed into its deliberations about the future of its Damang mine.
In an interview with Citi Business News the Chief Executive Officer and Executive Director of Gold Fields Nick Holland said the agreement is a win-win for the company and Ghana.
Meanwhile the GRA has announced plans to clamp down on the tax evasion by some mining companies.
In a recent interview with Citi Business News, the Head of Special Revenue Mobilisation task force, Henry Sam said his outfit will be reconciling the amount of taxes paid by the suppliers of mining equipment with refunds claimed under the law.
The suppliers in 2016, claimed over 500 million cedis in refunds.