General Manager of Ghana Bauxite Company, J.K Fang, says despite operational challenges, the company took firm strides to register profits for the first time in two different years.
The company made $4,020,000 profit in 2015 and another $ 3,400.000 in the 2017 financial year.
Even then, according to him, the mining firm did not pay tax on the profits because it was used to offset previous losses.
"Last year we made about 3 million dollars and 2015 we made 4 million dollars. We don't need to pay Corporate Tax because the losses in the past 5-years can offset our profits," he explained.
Mr. Fang also defended the decision to increase production although the company is running at a loss, saying it will help bring down production cost.
This explanation by the Ghana Bauxite Company is in reaction to a call by the Minister of Lands and Natural Resources for a probe into the operations of the mining firm.
There are allegations the company is scheming to evade payment of taxes.
The Minister, John Peter Amewu, suspects there may be tax-shielding mechanisms adopted by the company to default in the payment of Corporate Income Tax into government coffers.
The minister, who made the remarks during a one-day visit to the company's Awaso Mine, said the company seems to have a motive to declare losses than gains.
The company has over the years defaulted on the payment of Corporate Income Tax.
The Ghana Bauxite Company Limited, under the management of Rio Tinto Alcan consistently incurred losses between the years 2003 and 2009.
For instance, it registered $ 11,159,000 loss in 2009 alone.
The trend, however, continued between 2010 and 2016 when Bosai Minerals took over.
Failure of the company to declare profit means it is exempted from the payment of millions of Corporate Income Tax in principle.
Despite the challenges, the company wants to expand its operations from the current Inchiniso which is home to about 6 million tonnes of ore to Subiri, believed to contain 11 million tonnes of ore and Afumba.
The company has already obtained a Mining Lease awaiting Forestry Entry and Environmental and Mining Operation permits.
Mr. Amewu is also unhappy Ghana Bauxite Company has been short-changing Ghanaians by selling bauxite to a Chinese firm believed to be its sister company at lower price on the blindside of Government of Ghana.
He warned that the government will take firm steps against the company to safeguard the interest of Ghanaians.
"That was the tax-shielding mechanisms we are talking about because if you are not declaring profit, government's Corporate Income Tax is based on profit isn't it? If there no profit, of course there is not going to be any tax.
"Eventually, that is what is happening. You can see that we only witness profit in 2015. 2016 there was a loss, 2017 I don't know what they are coming out with," he stated.
Mr. Amewu later told journalists his outfit will first launch investigations into the operation of Ghana Bauxite Company.
"That is why we need to investigate and find out what is the driving motive for this company; their interest is to be incurring losses as an ongoing entity. We need to examine what is making them feel comfortable in that position. Government don't want to be in a marriage with an ongoing entity that is so interested in making losses. We don't want to do this so we need to investigate," he said.
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