This is getting old .... Just move along By B.KHASH-ERDENE
On Tuesdayas reported by the Unuudur newspaper: the members of parliament; B.Bat-Erdene, Ts.Davaasuren, O.Baasankhuu and S.Ganbaatar who delivered an official letter demanding the renegotiation of the Oyu Tolgoi (O.T) investment agreement to the Prime Minister N.Altankhuyag, have again appealed to the press.The parliament members claim that the advertising boards that the OyuTolgoi Company set up around Ulaanbaatar stating that 71 percent of Oyutolgoi revenue will be designated to Mongolia and 29 percent to the investors are false. Also false is the Oyu Tolgoi claim that they have transferred an advance of more than 1.58 trillion MNT to the state.
Ts.Davaasuren stated: “The information we received from the General Tax Authority shows that in the last two years, Oyu Tolgoi paid 143 billion MNT and 304 billion MNT for customs tax. The Oyu Tolgoi’s advance payment was 250 million USD which is 325 billion MNT. From this data, the total amount the Oyu Tolgoi paid to the government is 772 billion MNT. The gap between the amount they have claimed to have paid and the amount the Tax Authority received is more than 300 billion MNT. Also, Rio Tinto has yet to submit their financial report for scrutiny which is against the law.”
B.Bat-Erdene stated: “Oyu Tolgoi’s response was brain washing of the masses by advertising the distribution ratio as 71:29 which reportedly wasn’t calculated by them but an impartial organization. O.T also claimed that the 1.58 trillion MNT amount is “money in circulation number”.
S.Ganbaatar stated: “I have been a lecturer at the Administrative Academy and through my students, who graduated from the academy, I was able to find the financial report that Oyu Tolgoi doesn’t share with the state. This report confirmed that the 71:29 ratio is inaccurate. When you examine the report, you will not only find that they have included foreign investment suppliers but also that even thetoothbrush price of the CEO Cameron McRae uses is included.”
According to the parliament members, Oyu Tolgoi’s production cost has increased to six billion USD which was previously recorded as four billion USD and they have announced that it will reach nine billion USD in the future. Also, they did not accept the decree by the General Tax Authority and have filed suit against it. The parliament members claim the Oyu Tolgoi is trying to evade tax by inflating the company’s costs.