JOHANNESBURG (miningweekly.com) – JSE-listed Kumba Iron Ore on Monday vowed to fight a R5.5-billion South African Revenue Service (Sars) tax assessment.
The group said its 73.9%-owned subsidiary Sishen Iron Ore Company (SIOC) had been slapped with the multibillion-rand assessment for the tax years 2006 to 2010, which included some R3.7-billion in interest and penalties.
“SIOC has cooperated fully with Sars during the course of the audit, but, supported by its specialist tax and legal advisers, disagrees with Sars' audit findings,” CEO Norman Mbazima said in an update to shareholders.
The subsidiary was now seeking a suspension of payment while it prepared its objection to the assessment.
“Kumba and its subsidiaries believe that all taxes owed under South African tax legislation have been paid and that we comply with all applicable tax laws in all jurisdictions in which we operate,” he explained.
Kumba pointed out that it contributed R900-million in corporate taxes and mineral royalties, R4.7-billion in salaries and wages, R15.2-billion in local procurement, R6.8-billion of capital reinvested in the business and R174-million in social investment in health, housing, education and small business development in 2015.
Over the past five years, R30-billion in taxes and royalties, excluding R4.4-billion in payroll taxes, had been generated.