Kumba CEO Themba Mkhwanazi
JOHANNESBURG (miningweekly.com) – The share price of JSE-listed Kumba Iron Ore fell by more than 6% on Friday morning after it announced that it would fork out R2.5-billion to settle a tax dispute with the South African Revenue Service (Sars).
The group on Friday said it had reached an agreement with Sars that would see it settle its full outstanding amount by the first quarter of 2017.
The settlement relates to a dispute over assessments received for the years 2006 to 2010 and the tax treatment of the relevant issues in the years 2011 to 2015.
“Kumba had already provided for an amount of R1.5-billion in its yearly financial statements for the tax years up to 2015 and an additional R1-billion will be accounted for in 2016 in respect of this settlement agreement,” said Kumba CEO Themba Mkhwanazi.