President says investor relations & settlement of tax disputes a priority15 Apr 2021 01:02
More positive words from the new President about wanting to rebuild relations with investors. However, it is the reference to setting all outstanding tax disputes and other issues with mining companies (I think we can safely assume this includes oil & gas in the context of the article).
FOR THE FIRST TIME IN YEARS, THERE IS A REASON TO BELIEVE OUR TAX DISPUTES WITH THE TRA MAY SOON BE SORTED OUT (see bottom of this post for details)
“In a wide-ranging televised address she spoke of a need to revitalize Tanzania’s connections with the wider world, citing in particular the need to make the country a hospitable place for foreign investment.”
““We need investors more than they need us,” she said, midway through the speech, as she mandated her newly-appointed foreign affairs minister to mend relationships with the international community.”
“ settlement will now be a priority, said President Hassan, not just of the Acacia dispute, but of all outstanding tax and other issues with mining companies.”
“So, it looks as if Tanzania is once again wide open for business, and that the President is keen to get things moving as fast as possible.”
https://www.google.co.uk/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/946590
From Aminex Report & Accounts:
1. The Company, with the support of its Tanzanian tax adviser, has been in discussions with the Tanzania Revenue Authority (“TRA”) regarding any taxes payable on the Farm-Out...The TRA’s assessment of the Capital Gains Tax (“CGT”) on the Farm-Out was US$2.2 million. The Board decided that although it disagreed with the basis for the CGT calculation, following a period of intensive discussions with the TRA to reduce the CGT, to avoid further potential significant delays, it was in the best interests of the Company to accept this CGT charge in order to expedite the completion of the Farm- Out,
2.On 11 April 2018, Ndovu Resources Limited received formal notification from the TPDC of certain claims amounting to US$5.97 million against the Kiliwani North Development Licence with regard to unpaid royalties and amounts due under profit share arrangements which it proposes to offset against the trade receivable balance owing by the TPDC to Aminex (see Note 15). Of the amount claimed, Aminex has already accrued for the liabilities it considers appropriate based on its own calculations of amounts due as at 31 December 2019. Aminex has advised the TPDC that it does not accept the balance of the claims, which include computational inaccuracies. The Group has received legal advice in country that supports its position and this has been provided to the TPDC. No further provision has been made in the financial statements for the additional amounts claimed as the Directors believe the claims are without merit and are satisfied that the US$7.80 million included in trade receivables as owing from the TPDC is recoverable. Aminex’s net share of the receivable is US$3.23 million.
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