BOSAI’s corporate tax payments offsetting royalties – McLean

– show me the money, says Harmon

Chinese bauxite company BOSAI Minerals’ royalty rate is offset by the company’s Corporate Tax payment whenever the company makes a profit, according to Company Secretary Norman McLean, who is denying royalties are being withheld from the country.

Responding to concerns recently voiced by APNU Member of Parliament Joseph Harmon over royalties that BOSAI is supposed to pay to Guyana for its bauxite extraction, which he estimates to be in the order of US$54 million, McLean has revealed that the company is operating under a Mineral Agreement which provides for a five-year exemption period as a development incentive at the end of which the company is required to pay 1.5 per cent royalties on the FOB value of bauxite mined.

McLean said that after five years the company is required to pay royalties but noted that if the company makes a profit the royalty rate is set off by Corporate Tax. “This is intended as another incentive to encourage companies to be profitable and pay Corporate Tax which is much higher than the 1.5 per cent royalty,” …..To continue reading, login or subscribe now.



Join the Conversation

After you comment, click Post. If you're not already logged in you will be asked to log in or register.

The Comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit/delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity. We moderate ALL comments, so your comment will not be published until it has been reviewed by a moderator.