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Besra disputes Vietnamese customs tax claims

5th July 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – ASX- and TSX-listed gold miner Besra on Friday said it was contesting two tax claims by the Vietnam General Department of Customs (GDC) against its subsidiaries Phuoc Son Gold Company (PSGC) and Bong Mieu Gold Mining Company (BMGMC).

The company said the GDC had made an assessment that PSGC and BMGMC should pay a total of 250-billion Vietnamese dong (about $12-million) in export duties.

In Vietnam, gold exported at 99.99% does not attract any export duty. GDC is claiming that during 2011 and 2012, several shipments did not meet 99.99% and, therefore, subject to a 10% tax.

Besra said it “strongly” disputed this assessment, as every shipment in question was refined in Vietnam to 99.99% by ACB Gold Centre and certified 99.99% by the official government testing centre, Quality Assurance and Testing Centre 3.

Besra exports gold to the Argor-Heraeus (Argor) refinery in Switzerland, to certify the gold as "good delivery" before it is sold. The company stated that Argor's assays had always confirmed good delivery within normal industry tolerance.

PSGC and BMGMC each filed official complaints under the Vietnamese law on complaints on May 16.

The law provides for companies to dispute assessments made by government bodies in Vietnam, in the first instance, in an appeal heard by GDC, followed by an appeal to the Finance Ministry and, finally, in proceedings before an administrative court of law.

Besra said it intended to exhaust all rights of appeal and it was of the view, supported by external legal counsel, that the claims brought by the GDC were without merit.

Discussions with the Vietnamese government were continuing.

Besra is a diversified gold company focused on four advanced properties, including the Bau goldfield, in East Malaysia; Bong Mieu and Phuoc Son, in central Vietnam; and Capcapo, in the Philippines.

Edited by Creamer Media Reporter

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