Antony D. Miller, PhD in Educational Leadership; International Educational Advisor for Santis Educational Services: Economics, Political Science & Educational Leadership Fellow to The Chartered College of Teaching, UK
This paper’s purpose is an attempt to examine the taxation policies enacted onto international mining companies operating in both Mongolia and Kazakhstan (being geographic neighbours) and both nations have a similarity within their respective extraction of raw minerals and other precious metals/resources therein. In addition, this body of research will display a succinct deviation in one country’s corporation tax policy compared to the other; how it has created the “phoenix from the ashes” scenario between Astana-Kazakhstan and the meagre resourced outcome for development in Ulaanbaatar-Mongolia. The data will also illustrate how a nation’s gathering of revenue, has been undermined due to the pressure from international mining companies, which are indeed supported by foreign entities. Therefore, highlighting the differences in policy in corporation taxation within two neighbouring administrations. This report will objectively compare mining extraction quantities and projected revenues concurrently via confirmed cited testimonials from official governmental respected offices of statistics inclusive of the contributions from notable audit firms involved with the data collection cum archiving. The data therein would confirm this paper’s findings within empirical validity via Standard Error projections within the subject matter’s hypothesis and subsequently determine data mining findings.
Keywords: mining, taxation, globalization, policy, revenue, multinationals, & minerals.
JEL Classification: L72, H2, F6.
Cite as: Miller, A.D. (2019). Current Mining Taxation Policy Implemented by both Mongolia and Kazakhstan: The Development Comparatives between Ulaanbaatar and Astana. Business Ethics and Leadership, 3(2), 39-52. http://doi.org/10.21272/bel.3(2).39-52.2019.
- Abadi, M. (2018). Inside the eerily quiet streets of Kazakhstan’s 20-year-old capital city, where futuristic skyscrapers tower over the grasslands of a former prison camp. Business Insider. https://www.businessinsider.com/astana-kazakhstan-planned-city-2018-6. Business Insider (Accessed on 6 October 2016).
- Anderson, J. H., Lee, Y. and Murrell, P. (2000). Competition and Privatization amidst Weak Institutions: Evidence from Mongolia. Economic Inquiry, 38(4), 527-549.
- Auty, R. and Soysa, I. (2006). Energy, Wealth and Governance in the Caucasus and Central Asia: Lessons not Learned (Abingdon: Routledge).
- Batchimeg, B. (2017). Mongolia exports 33.320.3 thousand tons of coal in 2017. MMHI: 2018-01-11 Press Conference. Available at: https://www.montsame.mn/en/read/133072 (Accessed 24 June, 2018).
- Bedeski, R. (2006). Mongolia as a Modern Sovereign Nation-State. The Mongolian Journal of International Affairs, 13, 84.
- Biau, J. (2011). In Brief: Standard Deviation and Standard Error Orthop Relat Res. 2011 Sep; 469(9), 2661-2664. doi: 10.1007/s11999-011-1908-9. PMCID: PMC3148365.
- Bloomberg. KAO:LI (2019) Bloomberg Stock Watch. NAC Kazatomprom JSC Uranium. https://www.bloomberg.com/quote/INDU:IND?in_source=topQuotes. (Accessed 24/05.2019).
- Bridge, G. (2004). Mapping the Bonanza: Geographies of Mining Investment in an Era of Neoliberal Reform. The Professional Geographer, 56(3), 406-421.
- Campi, A. (2012). Mongolia’s Quest to Balance Human Development in its Booming Mineral-Based Economy. Brookings Northeast Asia Commentary, 51. Available at: http://www.brookings.edu/research/opinions/2012/01/10-mongolia-campi (Accessed 29/08/2013).
- Deloitte (2018). Introduction of the New Tax Code. Report for Kazakhstan. Available at: https://www2.deloitte.com/content/dam/Deloitte/kz/Documents/tax/TaxAlerts/Tax_Alert_January_2018.pdf (Accessed on February 2018).
- Deutsch, A. and Edwards, T. (2013). Special Report: In Tax Case, Mongolia is the Mouse that Roared. Reuters 16th July 2013. Available at: http://www.reuters.com/article/2013/07/16/us-dutch-mongolia-tax-idUSBRE96F0B620130716 (Accessed 1/08/2013).
- EITI Report (2019). Overview Mongolia. Available at: https://eiti.org/mongolia (Accessed 12 June 2018).
- Export.gov. (2017). Mongolia-Mining. Available at: https://www.export.gov/article?id=Mongolia-Mining. (Accessed on 2 October 2018).
- Grant, M. (1959). The Annals of Imperial Rome by Tacitus. Mass Market Paperback, L60, (464 Pages). Published by Penguin Classics; Original Title Latin − Ab excessu divi Augusti.
- Index Mundi (2018). Commodity prices. Available at: https://www.indexmundi.com/commodities/ (Accessed on 26 January 2018) (51).
- Jurisdiction (2017). Mining. Kazakhstan. Available at: https://gettingthedealthrough.com/area/22/jurisdiction/62/mining-2017-kazakhstan/#link-37. (90) (Accessed June 2017).
- KazWorld (2017). UK Considers Funding Mining Projects in Kazakhstan. Available at: http://kazworld.info/?p=62621 (Accessed on 26 January 2018).
- Kerver, ILTOD Trade and Development (2011). Mining Tax and VAT Reform in Mongolia. Available at: https://www.iltod.gov.mn/?p=2085 (Accessed 21 March 2017).
- Kiezebrink, V. et al. (2018). Mining taxes, “The case of Oyu Tolgoi and profitable tax avoidance by Rio Tinto in Mongolia” SOMO. (Accessed on 2 October 2018).
- Mining Journal (2019). Mongolian Push for Oyu Tolgoi Deal Changes. Available at: https://www.mining-journal.com/politics/news/1360458/mongolian-push-for-oyu-tolgoi-deal-changes (Accessed 20 April 2019).
- MMHI (2017). Mongolian Ministry of Mining and Heavy Industry. Mongolia Country Commercial Guide: gov/article?id=Mongolia-Mining (Accessed 2 October 2018).
- Munkhchimeg, D. and Lewis, B. (2019). Reuters. Mongolia, overseas investigators probe Oyu Tolgoi corruption claims as ex-minister re-arrested. Available at: https://www.reuters.com/article/us-mining-riotinto-mongolia/mongolia-overseas-investigators-probe-oyu-tolgoi-corruption-claims-as-ex-minister-re-arrested-idUSKCN1PN0OY (Accessed 4 February 2019).
- Trading Economics (2017). Oil Commodity Prices: https://tradingeconomics.com/mongolia/crude-oil-production?poll=2018-04-30. (Accessed 23 May, 2018).
- Trankmann, B. (2018). From Mineral Riches to a Sustainable Future. Available at: www.mn.undp.org/content/mongolia/en/home/blog/2018/from-mineral-riches–to-a-sustainable-future.html (Accessed 27 April 2019).