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RBPlat reaches R110m tax settlement with Sars

10th July 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Royal Bafokeng Platinum (RBPlat) on Friday said it had reached a settlement agreement with the South African Revenue Services (Sars) over a R437.5-million revised tax assessment.

Following a dispute with Sars over the 2008, 2009 and 2010 tax assessments for wholly-owned subsidiary Royal Bafokeng Resources, RBPlat agreed to hand over a R50-million upfront cash payment to Sars.

A further R60-million tax payment would be made when the subsidiary shifted into a net mining tax paying position by around 2019.

In January 2013, RBPlat received notice of the multimillion-rand revised tax assessment, which included income tax of R106-million, R246.4-million in penalties and interest of R85.1-million, following a Sars audit and a reopening of the assessments to effect certain proposed adjustments.

At the time, the company noted that Sars intended to disallow interest on R586-million in shareholders loans previously deducted by the subsidiary during the tax periods in question.

The group immediately filed an objection, which Sars rejected, followed by a Notice of Appeal in November 2014.

Edited by Creamer Media Reporter

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