National Development Company Group has apologised to shareholders for failing to register the firm since 2008.
Chairman U Khin Shwe said at the 14th company’s annual general meeting on Saturday, November 17 that National Development Company Group has not paid tax to the Internal Revenue Department since 2007 but assured shareholders that the company has the tax owed in hand and was working to re-register the group.
“I tried many times to re-register the company but I failed,” he said.
“Last year the government gave permission for us to re-register. And I tried to re-register at that time but was unable to do so because the company could not provide tax receipts for the past two years.”
However, a company official later clarified that the group actually owes tax for four years.
“We have the money we owe in tax for the past two years but we must get our company re-registered first. If we can do so, we can clear our tax debt,” said U Khin Shwe.
The NDCG company official told The Myanmar Times that the company owes about K400 million (about US$473,000) in back taxes.
A spokesperson for Myanmar Investment Commission said companies that failed to pay the tax they owe will not be allowed to operate.
“If companies don’t meet their tax obligations they will not be allowed to register,” he said.
U Khin Shwe said the company’s failure to re-register meant it could not work in some sectors.
“Without a valid registration, the company can’t be involved in the export and import business as well as other international investments. Moreover, we can’t accept any foreign investments without a permit,” U Khin Shwe said.
“But we try to pay a dividend to shareholders every year,” he added.
NDGC has more than 3000 shareholders, who own more than 320,000 shares, with 680,000 shares unsold so far, the company official said.
The highest dividend paid to shareholders was equal to 36 percent of a share – and was paid out in 2002-03 and 2003-04 financial years. However, dividends were not paid in the 2007-08 and 2010-11 fiscal years, he said.
The company sold shares for K10,000 each in 1998 and the share price has increased to K14,000. However, the company only allowed shareholders to trade their shares with other buyers and did not buy them back.
“My father bought 50 shares before he passed away,” said shareholder Daw San San Aye.
“I like it when the company pays dividends but I’d prefer to sell my shares and invest the money in other ventures.”