Phuoc Son Gold sees business registration certificate revoked

13:00 | 13/07/2016
The business registration certificate of Phuoc Son Gold Company Ltd. (Phuoc Son Gold), managed by Canadian Besra Inc.’s Vietnamese subsidiary, has been withdrawn, due to its delay in paying VND334 billion ($14.96 billion) in tax arrears.

According to newswire, Tran Van An, deputy director of the Quang Nam Department of Planning and Investment, said that the provincial authorities previously delayed the revocation aiming to create opportunities for the company to pay its tax debt. However, as of now, Phuoc Son Gold has yet to comply, forcing the authorities’ actions.

An stated that if the company did not pay tax or provided a feasible plan for payment within six months since it had the business registration certificate revoked, it would have to stop its operations.

According to a source from the Quang Nam Tax Department, Viet A Bank, which holds 35 per cent of Phuoc Son Gold, volunteered as its tax debt guarantor. However, the bank has yet to submit enough necessary documents for the guarantorship. The Quang Nam Tax Department will consider giving the bank guarantee rights after it completes the dossier.

Previously, the Quang Nam Tax Department disagreed with a proposal to renew the expired exploration licence of Besra’s Bong Mieu Gold Mining Company Ltd. (Bong Mieu Gold) due to its long delay in paying nearly VND100 billion ($4.48 million) in tax.

“If Bong Mieu Gold wishes to start its new circle of operations after the settlement of its tax arrears, it will have to apply for a new permit, supply details about exploration reserves and its operational period, as well as make new commitments to ensure environmental protection measures,” An stated.

Located in Phu Ninh district, Bong Mieu Gold was commissioned in 2006 and the Phuoc Son site in 2011. They are the two largest gold mines in Vietnam.

However, both mines have difficulty maintaining their operations, racking up a massive loss of over VND1 trillion ($44.7 million), with a short-term debt volume of VND2.5 trillion ($111.7 million).

Exacerbating its ruinous situation, Besra Vietnam has to face continuous losses as well as financial trouble due to the global slump in gold prices in recent years.

In January 2015, Besra Vietnam was warned to have its investment certificate revoked for its delay in payment of taxes and fees as well as late payment fines incurred for environmental pollution.

Quang Nam proposes to suspend operations of Besra Vietnam
Gold miner Besra Vietnam suffers massive losses
Bong Mieu and Phuoc Son gold mines face closure for not paying tax
Vietnam's largest gold mine boarded up for back taxes
Force Majeure lifted at local gold company

By By Ha Vy

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