Simberi Gold Company, a wholly-owned subsidiary of St Barbara
(ASX:SBM), has received a $210m tax assessment from Papua New Guinea’s Internal Revenue Commission (IRC). The assessment includes a 200% penalty, with the majority ($435m Papua New Guinean Kina) linked to claims of improper capital expenditure deductions, and the remainder ($88m PGK) related to deemed dividend withholding tax from a 2018 debt-to-equity restructure.
St Barbara and Simberi Gold dispute the IRC’s claims, and plan to appeal within the 60-day window. The company argues the IRC’s actions breach the five-year statutory limit for amended assessments, claiming the assertions of fraud are unfounded and designed to improperly reopen prior tax years.
Shares in St Barbara have sunk 31.97% to $20.75.
