JSE-listed Telkom said on March 31 that it plans to appeal the tax court judgement against it in a dispute with South African Revenue Services (SARS).
The matter relates to the tax treatment of the loss that arose in the 2012 financial year on the sale of a foreign subsidiary, which was heard by the Supreme Court of Appeal on March 4, with judgement handed down on March 25 against Telkom.
“We intend to apply to the Constitutional Court for leave to appeal the judgement,” Telkom said in an update to shareholders.
Telkom said that it fully provided for the implications of the matter, as it relates to both the 2012 and 2014 years of assessment, in prior financial years and therefore this will be earnings neutral.
“However, the cash flow implications of the outstanding liability of about R1-billion, which includes the implications of the judgement on the 2014 financial year, will be informed by a payment arrangement to be agreed with SARS,” the group concluded.