VietNamNet Bridge – The two gold mining plants of Bong Mieu and Phuoc Son have to pay nearly VND400 billion (nearly $20 million) of tax debts before being licensed to export gold, said a Government official at a government press conference last week.

Bong Mieu gold plant.

Earlier, the State Bank of Vietnam had asked the Prime Minister to licence Bong Mieu and Phuoc Son, two gold mining firms of the Besra Group (Canada) based in the central province of Quang Nam, to export nearly 375 kg of gold (175kg of Bong Mieu and 200kg of Phuoc Son), but they still owe nearly $20 million in taxes.

The central bank argued that although two companies have not fully implemented their tax obligations they were allowed them to export gold to help them overcome difficulties, have money to pay wages for its workers and to pay tax debts.

Regarding the doubt that these gold miners have assets but did not want to pay taxes, a Besra Group representative said that the 375kg of gold are not in stock. "We want to have a license and then consider gold production for export," he said.

Meanwhile, Nguyen Viet Xuan, Deputy Director of Quang Nam Taxation Department, said that Quang Nam only agreed with the two gold mining plants on gold export only after they pay tax debts; otherwise the central bank has to be the guarantee. Within 12 months, if the two companies do not pay the tax, the State Bank must take responsibility.

Xuan also confirmed Quang Nam’s position of claiming all tax debts from Besra.

Bong Mieu and Phuoc Son are the largest gold mining firms in Vietnam. According to the Tax Department of Quang Nam, from May 2012, both companies did not implement the tax obligation.

As of June 30, 2015, the total tax owed by the two companies was up to $387 billion. Quang Nam authorities used coercive measures such as disabling the bill, distraint of assets ... but still could not collect the debt. Explaining the causes of tax debts, the companies quoted the fall of gold prices, financial losses and natural disasters.

In addition, Bong Mieu is still under investigation by Quang Nam Police for making blank bills to sell gold for over $100 billion($5 million).

Nam Nguyen