Polymetal hit with monster tax bill
Mining firm Polymetal International said it had lost a battle with the Kazakhstan authorities and now faced a 19 million dollar fine.
Mining firm Polymetal International said it had lost a battle with the Kazakhstan authorities and now faced a 19 million dollar fine.
The firm said the Kostanay regional court in the country had ruled against its subsidiary, JSC Varvarinskoyeg, and slapped it with $14m corporation tax bill.
It will also pay an additional fine, increasing the total amount to around $19m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The legal argument concerned the tax deductibility of non-cash foreign exchange losses and of transportation, treatment and refining charges.
Polymetal warned no provision had been set aside in the financial statements for this settlement as of the end of June.
"[The] full amount of approximately $19m will be reflected as an expense in the financial statements for full year 2012," its statement said,
-
Revealed: the best funds to buy before the end of the tax year
Looking to add more investments to your portfolio but not sure where to start? We reveal the best funds to buy now as the end of the tax year edges closer.
By Katie Williams Published
-
4 tax tips for the Bank of Mum and Dad before the end of the tax year
Parents and grandparents wishing to gift money in a tax-efficient way need to be aware of the looming 5 April end-of-tax year deadline. Here are our tips to beat the deadline.
By Ruth Emery Published