Assets of Chinese Company frozen


The Large Tax Payers Office (LOT) of the Ethiopian Revenue and Customs Authority (ERCA) froze the liquid assets of the well know Chinese construction firm because they owe nearly four billion birr in back taxes.
ERCA has asked China Communications Construction Company (CCCC) Ltd, to settle profit tax and other related sums amounting to over 3.9 billion birr. Sources said that the construction firm has agreed to pay the tax but has not done so on time.
Hirut Mebrate, head of the branch office, told Capital that the LOT has frozen the assets of the Fortune 500 company.
“They were given a month to settle the required sum which is what the law stipulates, but the deadline passed on Tuesday. As a result, the tax authority is responsible for taking action to collect the money so we have frozen their assets,” she added.
According to Hirut, the company is expected to settle the accrued profit tax, reverse taxation, withholding and vat for the last two years.
Hirut said that the accounts the company held in several accounts were frozen as of the middle of the week.
CCCC, which was also known as China Road and Bridge Corporation (CRBC), is one of the oldest Chinese construction firms involved in Ethiopian business. It has been well known for projects it runs like the capital city’s first ever ring road which began in 1998 and consumed USD 98 million. It has also engaged in the first toll road of Addis-Adama at a cost of USD 800 million. Currently the company has projects including the USD 345 million Bole International Airport expansion project besides the 220 km Woldiya-Mekelle electrified rail project.
Recently China Civil Engineering Construction Corporation Ltd (CCECC), the other Chinese construction giant settled a bill with ERCA of over 446 million birr after the authority accused the company of forging receipts and evading taxes.