Details of US$259 million tax waiver to Anglogold presented to parliament.


Following a joint report to the house of Parliament for approval of a $259 million tax waiver on the operations of AngloGold Ashanti Ghana Limited, the Chairman of the Finance Committee, Dr. Mark Assibey Yeboah has provided seven items detailed for the waiver.

According to Dr. Assibey, the Tax Concession Agreement (TCA) captures Royalties, Corporate Income Tax, Capital Allowance, Retention of Losses, Customs Import, Value Added Tax (VAT) and Deemed Disposal.
In further explanation, the Chairman stated on the floor of the house that AngloGold Ashanti will enjoy a $40 million tax waiver on royalties, contributing to 3 percent current position of AngloGold until April 2019.
On Corporate Income Tax, the government according to the report, will offset $2 million and the  estimated impact between current law position of 35 percent would be reduced to 32.5 percent.
Also, AngloGold Ashanti is no longer required to pay $56 million in capital allowances due in 2020 and 2021. This is derived on the basis that the current utilised capital allowance balance is carried forward to 2020 and becomes part of the loses in 2021.
The report also revealed that  Customs Import Duty to the tune of $161 million would be waived, constituting 3.1 percent impact between the current law and the exemption.
Retention on Losses contributing 3.1 percent on current law possion has no waiver and such tax would only be triggered in the event of a change in control of AngloGold Ashanti Ghana.
The report again indicated that Value Added Tax, as part of the total amount for the Customs Import Duty is equivalent to $76.6 million.
Dr. Assibey in his presentation informed the house that the current agreement as compared to the existing one showed that the joint committee has worked well to the benefit of the country.
Source: GhanaJustice/S.Ayisi