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Cape Town - Sishen Iron Ore Company (SIOC) will dispute a tax bill of R1bn it received from the South African Revenue Service (Sars) for the 2011 tax year, the company said in a statement on Tuesday.
Sishen is a subsidiary of Kumba Iron Ore [JSE:KIO], which owns 73% of the company.
In addition to the R1bn-tax assessment for 2011, Sishen had earlier received an assessment in relation to the 2006 to 2010 tax years, which the company had also disputed. The company is awaiting a response from the Commissioner of Sars on these matters, the company said.
Kumba's share price was trading 4.66% lower at R126.32 by 11:07.
In February this year, Kumba was slapped with a R5.5bn tax claim, including R3.7bn in interest and penalties, following an audit of the tax years 2006 to 2010 of Sishen Iron Ore Company (SIOC).
READ: Kumba Iron Ore to appeal R5.5bn tax ruling
Regarding the latest tax claim, the company said it has cooperated fully with Sars, “but disagrees with Sars’ audit findings and will respond to the letter accordingly and within the prescribed period".
Kumba CEO Themba Mkhwanazi was of the view that Kumba and its subsidiaries have paid all taxes owed to Sars and insisted that it complied with all applicable tax laws.
“Kumba generates substantial value for all its stakeholders and is fully committed to the transformation of the South African mining industry and to the wider societal and economic benefits that we bring,” Mkhwanazi said.
“In a year during which the iron ore prices fell sharply, our business contributed R900m in corporate taxes and mineral royalties.”
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