VietNamNet Bridge – The Tax Bureau of the central province of Quang Nam has decided to take coercive methods to collect taxes from the two biggest gold mining firms in Vietnam, Phuoc Son and Bong Mieu.



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A gold mine in Phuoc Son District, Quang Nam Province.



According to the tax agency, the total tax debt of the Phuoc Son and Bong Mieu Gold Mining Companies, both located in Quang Nam, is now into the millions of US dollars.

In particular, Phuoc Son’s tax debt amounts to nearly VND140 billion ($7 million), including fines for late payment of taxes. Of that total, VND94.5 billion is a natural resource tax and nearly VND15.5 billion is corporate income tax. The debt of Bong Mieu is nearly VND13 billion ($700,000), also consisting of both taxes and fines for late payment.

Before deciding to take coercive measures to collect taxes from the deposits of these gold miners at the banks of Da Nang City, the tax agency of Quang Nam tried many other approaches, but these firms refused to pay taxes.

Phuoc Son’s trouble do not, apparently, end with a large tax bill. The company has also been implicated in many debt scandals involving various individuals and organizations in Quang Nam.

Some local newspapers reported that nearly 200 traders and building workers surrounded the Phuoc Son Gold Company on December 26, 2013 to demand debt payments. Phuoc Son also owes some companies tens of billion dong.

Phuoc Son Gold Mining Limited is a joint venture between Besra Gold Corporation (formerly Olympus Pacific Minerals Group) of Canada with the Quang Nam Mineral Industry Company. This project was licensed in October 2003.

The project has registered capital of $10 million with a 30-year duration. The equity ratio is 85 percent for the foreign partner and 15 percent for the Vietnamese partner. During operation, the Vietnamese partner has the right to purchase the shares of the foreign partner to achieve at least 30 percent of legal capital.

Bong Mieu Gold Company is a "tripartite joint venture" among Olympus Pacific Minerals of Canada with two Vietnamese partners - Mineral Development Company and Quang Nam Mineral Industry Company. The firm was licensed to explore the Bong Mieu gold mine in 25 years in an area of approximately 32km in March 1991.

Hai Quan/PLTPHCM