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We use off-shore entities to mitigate 'double tax' - AngloGold Ashanti

Johannesburg - AngloGold Ashanti [JSE:ANG] uses off-shore entities, but only to mitigate paying tax twice after complying with the tax laws in countries where it is based, the company has said. 

The company's response to News24 follows an entry for AngloGold Limited, which is linked to South Africa, in a searchable database of the leaked Panama Papers. 

AngloGold Limited is a shareholder of AngloGold American Investments Limited, whose jurisdiction is in the British Virgin Islands. 

AngloGold Ashanti told News24 that its off-shore entity had a legitimate use, and it was not breaking the law. 

"Our parent company, AngloGold Ashanti Limited, is a South African company and, as such, the entire group is subject to the provisions of South African tax legislation and exchange control regulations, with which it fully complies," it said. 

'Rigorous annual audit'

"It is also worth noting that AngloGold Ashanti operates a global portfolio of mining operations, including 19 mines across nine countries. About 75% of production last year came from outside South Africa."

The company said it was audited in each operating country, in addition to "undergoing a rigorous annual audit at a corporate level".
 
"Our mining assets are held by subsidiaries registered in the countries in which they are located and are taxed locally (e.g., Brazilian assets pay tax in Brazil, Tanzanian mines pay tax in Tanzania). That means all taxes due in each of the nine countries in which we operate, are paid directly in those jurisdictions.
 
"Only after all in-country taxes are paid, do we then use off-shore entities to facilitate the movement of any after-tax profit, to our holding company.

"This ensures we don't incur additional tax unnecessarily. Therefore, the use of off-shore entities... allows AngloGold Ashanti to mitigate 'double taxation' issues that may arise."

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