Newmont pays more than GH¢71 million to government Pays single largest corporate income tax since the start of operations
Newmont Ghana Gold Limited has paid a total of a little more than US $47 million (GH¢71.44 million) to government for the quarter that just ended.
The amount comprises US $39 million for Corporate Income Tax, US $6 million for the National Fiscal Stabilization Levy, and US $2 million as Mineral Royalties for the month of September (Royalties are paid monthly). The Corporate Income Tax paid represents an increase of 30 percent over what the company paid for the previous quarter. Newmont is also the only miner which has complied with the request to pay taxes in foreign currency. These came to light when the miner presented a cheque to the Large Taxpayer Office (LTO) in Accra last week.
The money presented to the LTO, is the single largest Corporate Income Tax payment that it has ever received. Speaking during the presentation of the cheque, the Deputy Commissioner in charge of LTO, Kwame Ofosuhene Apenteng, was pleased with the contribution by Newmont. He disclosed that the tax collected from Newmont in the previous quarter represented over 25 percent of total collections in that quarter, adding that the miner was an important customer to the LTO.
Mr. Apenteng was also pleased that Newmont has been proactive in paying its taxes in foreign currency and had also volunteered to pay Mineral Royalties monthly although the law to enforce that policy had not yet been passed. He described the contribution of Newmont and the mining sector in general to the national kitty as very significant. He expressed the hope that Newmont will continue to live up to its responsibility and hopefully pay more to the state in subsequent quarters.
The Director of Tax at Newmont Ghana Gold, Mr. Edwin Allotey Acquaye, who led the delegation from the mining company, explained that the tax paid was significantly higher than that of the previous quarter because of the surge in the price of gold. He added that as a result of the high gold prices, the company revised its profit forecast and therefore forecasted higher taxes for 2011. However, he pointed out that the surge in gold price has also led to the increase in prices of inputs for gold production.
The Tax Director said Newmont is a responsible corporate citizen hence its decision to grant the request to pay its taxes in foreign currency and also volunteered to adopt the proposed changes in the new mineral royalty payment schedule.
Mr. Allotey Acquaye noted that Newmont Ghana’s payment of its taxes in foreign currency was a clear testimony of the company’s commitment to the development of the Ghanaian economy. He also spoke about the enormous contribution of mining to Ghana and urged the LTO to constantly update the public of the funds mobilized from large taxpayers with a breakdown according to sectors to enable the public have a clear idea of the contribution of mining to the economy. In addition to the direct financial obligations, Newmont Ghana has also been supporting communities within its catchment area through its Foundation - Newmont Ahafo Development Foundation (NADEF). It also employs some 5,000 Ghanaian employees and direct contractors and also engages in other development programmes outside of its operational enclave.