Mongolia Energy’s Unit’s Payable Taxes Increase More Than Two-Fold After Reinvestigation

MT Newswires Live05-24

Mongolia Energy’s (HKG:0276) unit MoEnCo received a revised tax demand letter from the Mongolia General Tax Office (GTO), on May 21, for additional taxes and penalty of $119.2 million as compared to a $52.1 million payable taxes notice issued last year, a Thursday filing with the Hong Kong Exchange said.

Mongolia General Tax Office (GTO) issued a notice of tax findings of a routine periodic tax audit for the period between 2017 and 2020, to MoEnCo on July 28, 2023, bringing the additional taxes payable by MoEnCo to around $52.1 million.

In response, MoEnCo had filed an appeal notice against the tax findings for which The Tax Dispute Resolution Committee of Mongolia (TDRC) ordered a reinvestigation of tax findings at the hearing on Jan. 29, 2024.

The company attributed the increase in payables to GTO’s proclamations of MoEnCo’s under-reporting of the sales revenues and using processed coal data of market price instead of using data for raw coal in GTO’s assessment.

The company's shares were up 5% at today's close.

Price (HKD): $0.63, Change: $+0.03, Percent Change: +5.00%

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