With regard to comments that refer to Drummond Ltd.\u2019s income tax declaration, the company provides the following clarifications:<\/p>\n\n
Mining companies calculate their income tax annually in accordance with the law, which states that the income tax rate and the corresponding CREE must be applied to the net income (which is determined after applying the regulations in force). For 2014, these rates were 25% for the income tax and 9% for the CREE.<\/p>\n\n
Both the income tax and the CREE are calculated at the end of each tax year, once all of the elements necessary for determining the taxable amount (net income) are known. However, the State collects these taxes in advance through self-withholding, which must be paid monthly throughout the year.<\/p>\n\n
In the case of mining companies, the government set self-withholding rates that are much higher than the amounts of the income tax and CREE that must be paid each year. For this reason, both taxes not only were paid in advance by the mining companies but with the self-withholding these amounts were much larger than the tax that actually had to be paid.<\/p>\n\n
For the 2014 tax year, the amount of the income tax was included in line 69 of the tax declaration form, not in line 980 as erroneously shown in the above-mentioned publications as the latter line only shows the amount pending payment if the self-withholding was less than the tax calculated. As explained above, for mining companies the self-withholding amounts are greater and therefore no amount should be shown in the above-mentioned line 980.<\/p>\n\n
Also, another matter that some people have not taken into account is that Drummond Coal Mining LLC (DCM) is not the sole holder of any mining concession in Colombia. This company forms part of a consortium in which DLTD holds 90% and DCM holds 10% for the development of El Descanso. Due to taking into account only the DCM figures corresponding to 10% of that operation, the amounts quoted in the article are incorrect as, we repeat, both the income and the costs and expenses recorded in DCM\u2019s accounting correspond to 10% of the El Descanso mining operation. The remaining 90% is recorded in DLTD\u2019s accounting.<\/p>\n\n
With regard to Drummond Ltd.\u2019s contributions to the nation, from 2012 to 2014 the company paid the Colombian State US$ 853 million (1.6 trillion pesos) in royalties and more than US$ 606 million (1.1 trillion pesos) in taxes, fees, charges and contributions.<\/p>\n\n
In 2015, Drummond Ltd. had 26 million tons of production and 28 million tons of exports, which in terms of royalties and compensations generated US$ 202 million. Likewise, the company paid US$ 72.1 million in taxes, fees, charges and contributions.<\/p>\n\n
Since the time it started exporting, in 1995, Drummond has paid US$ 2.48 billion in royalties and compensations, and US$ 1.551 billion in taxes, fees, charges and contributions.<\/p>\n\n
Drummond Ltd. reiterates its total willingness to clarify or provide more information on matters related to the company.<\/p>\n","protected":false},"excerpt":{"rendered":"
With regard to comments that refer to Drummond Ltd.\u2019s income tax declaration, the company provides the following clarifications: Mining companies calculate their income tax annually in accordance with the law, which states that the income tax rate and the corresponding CREE must be applied to the net income (which is determined after applying the regulations […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-9095","post","type-post","status-publish","format-standard","hentry","category-press-releases"],"acf":[],"yoast_head":"\n