Centerra Gold disputes tax claims by Kyrgyz Republic State Tax Service

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TORONTO — Centerra Gold Inc. says it believes tax claims by the Kyrgyz Republic State Tax Service are exaggerated or without merit.

The gold miner says its Kyrgyz Republic subsidiary, Kumtor Gold Co., has received more than US$100 million in tax claims from the state tax service.

The claims include US$106 million related to withholding taxes on dividends paid to Centerra in 2016 and 2017 and a claim for US$17 million related to payroll deductions not withheld in 2016 and 2017.

Centerra says the claims were initially raised by the state tax service in 2018, but were withdrawn or terminated.

The Canadian gold miner says the state tax service has now annulled its previous decision in order to revive such claims.

The state tax service has also made a claim against KGC for US$23 million in relation to payments to the Kyrgyz Republic Social Fund for 2011 through 2017.

This report by The Canadian Press was first published March 18, 2021.

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The Canadian Press