Ethiopian Premier Accuses Allana Potash of Tax EvasionJanuary 16, 2017 - Prime Minister Hailemariam Dessalegn on Monday accused Allana Potash, the Canadian company which was engaged in potash mineral exploration and development project in the Afar Regional State, of tax evasion, according to Reporter. Allana Potash, which was listed in the Toronto Stock Exchange through its subsidiary company Allana Potash Afar, was prospecting for potash deposit in the Danakil Depression in North East Ethiopia for more than six years and spent tens of millions of dollars on the exploration project. Following the acquisition of Allana Potash, ICL applied to the Ministry of Mines, Petroleum and Natural Gas to transfer the mining license of Allana to ICL. Before the mining license transfer was made the Ethiopian Revenues and Customs Authority (ERCA) claimed Allana Potash Afar to pay some 55 million dollars in tax. The tax claim includes the withholding and VAT tax arrears, which was supposed to be paid by Allana, and capital gain tax for the acquisition of Allana.

Source: Ethiopian News January 16, 2017 20:00 UTC