I can only guess that the 50% gross profit share for Tanzania includes the new royalty of 6% and other mandatory tax and corporate social responsibility; and that, the 16% stake in Bаrrіck only covers 16% of its local Board plus 16% of its salaries.
Otherwise, Bаrrіck’s acceptance of the 50% distribution of gross profit on top of the royalty of 6% and other mandatory tax and corporate social responsibility also paid to the Government could only mean that gross profit is estimated to be insignificant; and that, Bаrrіck is going to earn most of its deserved share of gross profit through other undetected and therefore untaxed sources.
Basing on figure 2 of the division of mine revenues of а 20 year typical medium sized copper mine presented here:
could also guess that the undetected and therefore untaxed ways Bаrrick could earn most of its deserved share of mining profits untaxed could be through the unditected over costing of capital and operating services and supplies to minimize the gross profits declared for sharing with the Government through corporate taxes.
Had to guess because neither Bаrrick nor the Government bothered to clearly clarify to us on the base for the proposed 16% share in Bаrrick as well the 50% distribution of gross profits asked for here by Africa Yetu.
I can only guess that the 50% gross profit share for Tanzania includes the new royalty of 6% and other mandatory tax and corporate social responsibility; and that, the 16% stake in Bаrrіck only covers 16% of its local Board plus 16% of its salaries.
Otherwise, Bаrrіck’s acceptance of the 50% distribution of gross profit on top of the royalty of 6% and other mandatory tax and corporate social responsibility also paid to the Government could only mean that gross profit is estimated to be insignificant; and that, Bаrrіck is going to earn most of its deserved share of gross profit through other undetected and therefore untaxed sources.
Basing on figure 2 of the division of mine revenues of а 20 year typical medium sized copper mine presented here:
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&cad=rja&uact=8&ved=0ahUKEwicwuKvq6XXAhWmNJoKHTf2CEYQFghnMAg&url=https%3A%2F%2Fwww.oecd.org%2Fsite%2Fdevaeo10%2F44282904.pdf&usg=AOvVaw3i_eE3WJDFxU1o1M1u7O74
could also guess that the undetected and therefore untaxed ways Bаrrick could earn most of its deserved share of mining profits untaxed could be through the unditected over costing of capital and operating services and supplies to minimize the gross profits declared for sharing with the Government through corporate taxes.
Had to guess because neither Bаrrick nor the Government bothered to clearly clarify to us on the base for the proposed 16% share in Bаrrick as well the 50% distribution of gross profits asked for here by Africa Yetu.