Share

Zimplats faces huge tax bill

Harare - Zimplats, owned by Impala Platinum Holdings [JSE:IMP], has said the Zimbabwe Revenue Authority (Zimra) is in the process of issuing revised income tax assessments covering the tax years from 2007 to 2012.
 
In a statement seen by Fin24, the group said that the principal tax per the assessments amounts to $33.8m and the company may be liable for additional interest and penalties.

This means Zimplats is facing a potential liability from government amounting to the assessed figure, and most probably higher if interest and penalties are factored in.
 
The revised assessments will disallow, in the main, the claiming of capital expenditure in full in the year incurred as provided for in the written undertakings issued by government in 2001, and on which the company has since placed reliance.
 
The group also said that to date, Zimra has assessed the company based on these undertakings, designed to put Zimplats in the same position as other mining companies in Zimbabwe which are not subject to a special mining lease.
 
Zimra has now stated that the reassessments will be issued on the grounds that the legislation required to give legal effect to the undertakings has not been promulgated.
 
The company has conceded that as the government did not give legal effect to the written undertakings as envisaged, it is liable to pay the principal amount of tax.
 
However, it has lodged an objection to the payment of penalties and interest.

Discussions with Zimra in this regard are ongoing, including discussions on payment terms. The statement does not say how much in penalties and interest Zimplats has been charged with. 

- Fin24

*Malcom Sharara is Fin24's correspondent in Zimbabwe.

*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.1%
Rand - Pound
24.08
+0.1%
Rand - Euro
20.61
-0.1%
Rand - Aus dollar
12.37
+0.4%
Rand - Yen
0.13
+0.5%
Platinum
906.50
-1.8%
Palladium
1,010.52
+0.4%
Gold
2,157.07
-0.2%
Silver
24.99
-0.2%
Brent Crude
86.89
+1.8%
Top 40
66,032
-0.3%
All Share
72,214
-0.3%
Resource 10
53,305
-0.0%
Industrial 25
99,838
-0.6%
Financial 15
16,604
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders