A tax dispute over a potential 11.6 billion rand ($878 million) charge between South Africa -based international chemicals and energy company Sasol and the Revenue Service will play out in South Africa’s Supreme Court of Appeal within the next 12 months.
June 30. 2017 a R1.2-billion tax liability was approved by the Tax Court in a case against Sasol by SARS relating to the company’s international crude oil procurement activities between 2005 and 2012. The Tax Court further reported that the final tax amount along with other tax principles raised by SARS in relation to Sasol Oil’s crude purchases in 2013 and 2014, would result in a further tax exposure of R11.6-billion, thus uplifting the total tax liability to R12.8-billion.
Aug. 14. 2017 the supreme court granted Sasol’s application for leave to appeal the tax court ruling.
Sasol’s dispute with the tax authority comes after Kumba Iron Ore, Anglo American’s iron ore producer, announced it had settled a tax dispute between its Sishen Iron Ore subsidiary and SARS for 2.5 billion rand.