Tax win for Birimian after ATO waives penalties
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Mali miner Birimian is back in the taxman’s good books after taking a hit on the chin for unpaid tax bills.
The Australian Tax Office (ATO) this week waived penalties for the company (ASX:BGS) after it admitted it owed more than $2 million in tax in Australia and Mali.
Details of a “range of issues” were first brought to light in early 2017, after the company tried to sell its Goulamina lithium project to a Chinese company and discovered the outstanding tax bill.
A review found the company had not met obligations in regard to PAYG tax or superannuation for employees, business activity statements, employee share schemes and WA payroll tax liability.
Current directors made a voluntary disclosure that included $1.6 million in relation to tax matters, which the ATO has now waived.
The admission followed a payment of $404,000 in outstanding taxes to the Malian Tax Authorities too.
“The Company now has resolved almost all outstanding tax matters in Australia and Mali, with only the WA payroll tax issue to be resolved, which is not material,” director and chief Greg Walker said.
“While provision was made for $2.1m to settle all outstanding tax, interest and penalty payments, total expenditure to-date has amounted to $404,000, which is an extremely good outcome for the Company.
“Accordingly, the provision will be substantially reversed.”
The shares were up 3 per cent tpo 46c on Wednesday.
The stock took a hit early this month when it converted 2.5 million unlisted options – its share price dropped 35 per cent from 68c to 44c.
It reported $12.5 million in the bank at the end of the December quarter.