The assessment was received by Kumba Iron Ore’s 73.9% owned subsidiary, Sishen Iron Ore Company (SIOC) ], and is in relation to the tax years 2006 to 2010, for the amount of R5.5 billion which includes R3.7 billion.
[quote]SIOC has cooperated fully with SARS during the course of the audit, but, supported by its specialist tax and legal advisors, disagrees with SARS’ audit findings the company said in a statement.
Consequently, SIOC is in the process of preparing an objection to the assessment, together with an application to the Commissioner of SARS for a suspension of payment until the matter is resolved.
Norman Mbazima, CEO of Kumba Iron Ore says: “As a responsible corporate citizen, and that we comply with all applicable tax laws in all jurisdictions in which we operate.”
“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.”
“For example, in 2015 alone, a year during which the iron ore price fell sharply, our business contributed R900 million in corporate taxes and mineral royalties, R4.7 billion in salaries and wages, R15.2 billion in local procurement, R6.8 billion of capital reinvested in the business and R174 million in social investment in health, housing, education and small business development.”
Kumba Iron Ore has been facing difficulties since the iron ore price deteriorated. Most recently the company announced its parent company would be divesting its +70% ownership in the company and a significant job retrenchment programme.