Overview of St Barbara's tax dispute

St Barbara (ASX:SBM) is contesting a tax assessment from the Papua New Guinea Internal Revenue Commission (IRC) levying PGK 523 million in additional taxes, including penalties. The dispute arises from alleged miscalculations concerning capital expenditure and a 2018 debt-to-equity transaction. St Barbara and its subsidiary, Simberi Gold Company Pty Ltd, plan to appeal the assessment, asserting flaws in the IRC's calculations and tax law application.

St Barbara's strategy in addressing the tax dispute

St Barbara is actively disputing the tax assessment issued by the Papua New Guinea Internal Revenue Commission, which alleges errors in their capital expenditure calculations and a 2018 debt-to-equity transaction. The company plans to appeal, emphasizing their compliance with tax laws and highlighting methodological errors in the IRC's assessment. St Barbara's defense focuses on correcting what they see as miscalculations and incorrect application of tax laws, with the appeal deadline set for February 17, 2025. The resolution of this dispute is critical, as it could significantly impact St Barbara's financial standing and operations.

Executive insights on the tax dispute

Andrew Strelein, Managing Director and CEO, expressed disappointment over the timing and nature of the IRC's assessment but remains hopeful for a swift resolution.