Petra pays taxes over GBP 86K in a year!

 

Petra announces Report on payments to Governments! 

Payments to Governments Report for the year ended 30 June 2020 is being announced by Petra Diamonds. This Report, which provides an overview of the payments to governments made by Petra Diamonds Limited, its subsidiaries and jointly controlled operations, is required under the United Kingdom’s Report on Payments to Governments Regulations 2014, which apply to large, UK-listed extractive companies. 

The Report aims to satisfy the Regulations as well as the Disclosure and Transparency Rules of the Financial Conduct Authority in the UK. For the purposes of this Report, government will include any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government. 

It excludes any payments to State Owned Enterprises to procure goods or services from these enterprises typically consisting of utilities such as water and electricity. This report is also available on the Company’s website. 

Reporting threshold includes payments made which individually or collectively exceed GBP 86,000 within a financial year, as per the Regulations, however payments below this threshold may also be included, 1: Corporate taxes, 2: Mining and other license fees, 3: Royalties, 4: Infrastructure improvements & 5: Other. 

1. Corporate taxes: These are taxes paid by Petra on its income and profits in accordance with legislation enacted in the applicable jurisdictions, but exclude taxes levied on consumption (e.g. VAT, personal income taxes and sales taxes). Payments are reported net of refunds. 

2. Mining and other license fees: These are mining licenses and regional levies paid by Petra in accordance with legislation enacted in the applicable jurisdictions. 

3. Royalties: Royalties levied on the sale of rough diamonds. South African royalties are calculated on a sliding scale based on profitability and Tanzanian royalties are levied at a fixed rate. 

4. Infrastructure improvements: These include Community Social Investment and Local Economic Development related expenditure on permanent infrastructure, which is mandatory spend required of the Company as per its Social and Labour Plans in South Africa. 

5. Other: Payments towards custom and excise duties and property rates and taxes. There were no reportable payments to a government entity for production entitlements or signature, discovery or production bonuses during the Year.