“There are several reasons that 30 gold mining companies out of 130 are not paying the taxes. Some of them are hoping that the law on windfall profits tax will be invalid after a while, thus they are not selling their gold, otherwise, some companies are selling their gold to the Mongol bank, but not paying taxes. Thus, the Mongolian Tax Authority decided to appeal those companies to go to court. 1.2 tonnes of gold sold by the gold mining companies is MNT 52.5 million in total. ‘Erdenet Alt’, ‘Gachuurt’, ‘Tsagaan Tsahir Gold’, ‘Zolotoi Viktoriya’. ‘Erel’, ‘Gazar Holding’, ‘Ulaan Nachin’ and big mining companies such as ‘Altan Dornod Mongol’ etc are in the list of tax-dodging companies,” says L. Zorig, director of the Mongolian Tax Authority. (Daily News)

Confusion about tender on ‘Gobi’ company privatization?

Three consortiums including a cooperative consortium of ‘Toshisooke Investment’ bank and ‘HS Electronics’ Co.,Ltd, ‘BLJ’ corporation, and ‘Mon It’ consortium have submitted their tender materials to the State Property Committee (SPT) on December 4. But ‘Mon It’ consortium did not have their materials accepted. “Representatives from ‘Mon It’ consortium came late because they were irresponsible. We warned all the companies before to come at the correct time,” says B. Sarangerel, a worker at SPT. But ‘Mon It’ claims they came at 5:58 pm, 2 minutes before the time. “It’s an illegal action in order to cast the tender to confusion. Thus, we will submit our official application to SPT,” said Batdorj, director of Buligaar company. (Unen)

“Mongolian State not to accept boycotts on law”

A windfall profits tax law on sales of gold when the world prices rise above US $500 per ounce and $2600 per ton of copper was passed by the parliament last May. Just after that, the speaker of parliament said, “The state of Mongolia will not change the law just because of somebody’s oppression,” when many gold mining companies expressed their opposition. Ts. Nyamdorj, the speaker, had to repeat his word recently for the reason that the government formulated a project to change the threshold price up to US $650. He blamed the government for coming under the influence of others, while doing nothing to implement the law. (Centennial News)