After completing an audit of Oyu Tolgoi LLC’s 2016-2018 tax returns, the General Department of Taxation – the tax authority of Mongolia, on December 24, 2020, issued a tax claim for a total of MNT 649.4 billion (approximately US$228 million) that is due to be paid in cash to the Government of Mongolia.
After completing an audit of Oyu Tolgoi LLC’s 2016-2018 tax returns, the General Department of Taxation – the tax authority of Mongolia, on December 24, 2020, issued a tax claim for a total of MNT 649.4 billion (approximately US$228 million) that is due to be paid in cash to the Government of Mongolia.
2021-03-01 13:51:12
Ulaanbaatar /MONTSAME/. On February 26, 2021, the Government of Mongolia issued a press release stating that Oyu Tolgoi LLC has paid MNT 229.8 billion as the first installment under the Tax Act issued by the General Taxation Authority of Mongolia (Mongolian Tax Authority - MTA).
“In 2018 MTA imposed a Tax Act for Oyu Tolgoi LLC for additional MNT 377 billion of taxes after conducting audit on its tax filings and returns covering the period of 2013–2015. With respect to around MNT 350 billion of this Tax Act, Oyu Tolgoi had initiated an arbitration process at the London Court of International Arbitration,” the press statement reads.
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Tax Act from Mongolian Tax Authority
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A Mongolian subsidiary of Kincora has received a Tax Act ( 2021 tax assessment ) for 2.7 billion MNT, approximately US$950,000, from the Mongolian Tax Authority ( MTA ) relating primarily to the 2016 merger with IBEX
The 2016 IBEX merger required a tax assessment ( 2016 tax assessment ) as a condition precedent to closure and for reregistration of the merged entities
The 2021 tax assessment is a retrospectively calculated liability and is not in-line with the 2016 tax assessment
Three independent external legal opinions support Kincora s view that the 2016 tax assessment and merger transaction were properly formulated and supported by the Mongolian authorities at that time