This followed the discovery that six regional directorates of the Ministry of Finance were not receiving any revenues from extractive companies.
AEITI dug deeper and, using data from the Ministry of Mines and Petroleum on production and royalties, estimated that uncollected income tax alone could amount to losses of tens of thousands of dollars per company. Multiplied by some 330 registered companies in the six regions, annual missing revenue could amount to millions of dollars.
The Directorate General of Revenue at the Ministry of Finance then set up a joint Task Force with representatives from the Ministry of Mines and Petroleum with the aim to:
- Determine which extractive companies have valid licenses to operate.
- Collect copies of the mining contracts.
- Enquire about the tax payments of the companies throughout their activity period.
- Assess whether operations are active or inactive.
- Determine the total tax revenue companies have paid to the government to date.
- Determine the arrears of the companies and establish a mechanism to collect those arrears, including enforcement measures on non-compliant extractive companies.
- Determine pending payments of extractive industries in the cadastre department.