Kazakhstan: KMG EP Wins Tax Reduction
KazMunaiGas Exploration Production’s initial tax charge for 2009-2012 has been reduced by Tenge25bn to Tenge13.5bn. This follows a a positive review of the company’s 2009-2012 tax audit appeal by the Kazakhstan ministry of finance’s state revenue committee. The company said it provided for Tenge33bn in its accounts in 2015 in relation to this specific tax claim, so this reduction will be recorded in the 2016 annual financial statements as reductions to current year corporate income tax, excess profit tax, mineral extraction tax and fines and penalties in the amount of Tenge18.8bn.
Positive 2009-2012 tax audit appeal results
Astana, 3 February 2017. JSC KazMunaiGas Exploration Production (“KMG EP” or “the Company”) is pleased to announce that in accordance with a positive review of the Company’s 2009 – 2012 tax audit appeal by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, the initial tax charge was reduced by 25bn Tenge to 13.5bn Tenge. The Company has provided for 33bn Tenge in its accounts in 2015 in relation to this specific tax claim, so this reduction will be recorded in the Company’s 2016 annual financial statements as reductions to current year Corporate income tax, Excess profit tax, Mineral extraction tax and fines and penalties in the amount of 18.8bn Tenge.
In September 2015 the Company received a tax assessment related to the 2009 – 2012 Comprehensive tax audit of 38.5bn Tenge, including the principal tax charges and penalty of 28.3bn Tenge and an administrative fine of 10.2bn Tenge. The Company disagreed with the results of the tax audit and filed an appeal against the additional tax charges to the State Revenue Committee, which recently ruled to reduce the amount of principal tax charges and fines to 11.5bn Tenge. Additionally, in accordance with the decree of the Specialized Interdistrict Administrative Court of Astana, the amount of administrative fines was reduced to 2bn Tenge. The Company intends to file a court appeal for the remaining tax claim of 13.5bn Tenge in the near future.
For further details please contact us at:
KMG EP. Investor Relations (+7 7172 97 5433)
KMG EP. Public Relations (+7 7172 97 79 08)
Bell Pottinger (+44 203 772 2500)
Notes to Editors
KMG EP is among the top three Kazakh oil producers based on the 2016 results. The overall production in 2016 was 12.2 million tonnes (245 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The Company’s volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). The Company’s shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.
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