cardpoker| Mongolia Energy (00276) faces approximately US$104 million in tax dispute: tax authority demands payment of new additional taxes
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Mongolia Energy faces tax investigationCardpokerThe additional tax payable from 2017 to 2020 is about US $52.1 million, which has been appealed. The new additional tax for the tax year 2022-2024 is about $51.7 million. The company does not agree to the calculation criteria, which may have an adverse impact on the financial position and is seeking legal means. [47 words]
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(Mongolia Energy (00276) announced in July 2023 that the company had to repay about $52.1 million due to tax investigations, which MoEnCo has appealed and awaiting the results of a new investigation. Mongolia Energy (00276) faces tax disputes, according to the announcement in July 2023, the company was required to repay about $52.1 million in tax investigations between 2017 and 2020. In this regard, MoEnCo has lodged an appeal and was heard by the Mongolian tax dispute Resolution Committee on January 29, 2024. At present, the results of the re-investigation have not yet been reached, and the date of the retrial has not yet been set. However, the tax problem is not over. On May 6, 2024, MoEnCo received a reminder from the Mongolian Taxation Bureau for the additional tax of approximately US $51.7 million for the tax year 2022-2024, mainly for resource concession tax. MoEnCo strongly disagrees with this and believes that the calculation method is controversial and has sent a complaint letter to the Inland Revenue Department. The Mongolian tax Bureau asked MoEnCo to pay the new additional tax by May 6, 2024. Failure to comply with the requirements may lead to actions such as freezing bank accounts, assets and income, or even confiscating cash. Taking into account the financial position and operational implications of the Group, MoEnCo has sent a complaint letter to the Inland Revenue Department opposing the immediate payment of the new additional tax and sought legal advice, which may eventually be referred to the Mongolian courts for settlement. Despite the tax dispute, MoEnCo has included the new additional tax in its financial statements, notifying shareholders and potential investors.
