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The latest tax confusion involving Acacia Mining comes against the backdrop of a robust tax evasion crackdown instigated by President John Magufuli since coming into office in November 2015. Although all of the mining firm's gold-producing operations are from three large-scale mines in Tanzania - Bulyanhulu, North Mara and Buzwagi, respectively - the company is headquartered in London. TRA is seeking to levy taxes on the company as a resident firm in Tanzania.
Acacia Mining chief executive officer Brad Gordon confirmed the apparent impasse in a statement last week when announcing the company's 2016 financial results, saying: "We are (…) dealing with claims to levy taxes in Tanzania on the UK-registered Acacia Mining Plc, which we believe have no basis in law given this company is tax resident and permanently established in the UK." "Given the materiality of the amounts being claimed, we are also addressing a constructive resolution of these issues as part of our ongoing engagement with the Tanzania Revenue Authority (TRA) as well as at a senior level in the government." According to Gordon, the company has also been embroiled in several other legal tussles with TRA over the past year on claims of back-tax payments.
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