[miningmx.com] — ZIMPLATS has conceded defeat in its battle with the
Zimbabwe Revenue Authority (ZIMRA), saying that it won’t further contest a revised
tax assessment of $33.8m.
The group, a subsidiary of JSE-listed Impala Platinum, is now in discussions with
ZIMRA over payment terms, saying that it would seek to pay the amount in
instalments as to fund it from operating cash flows.
“We’re negotiating with ZIMRA over payment terms,’ said Zimplats CFO Patrick
Maseva-Shayawabaya. “One of the issues is the payment period.’
Zimplats posted a net profit of $122m for the year to end-June, down from $200m the
previous year, with cash and equivalents of $16.4m at the end of that period.
The revised tax assessment covers the financial years from 2007 to 2012.
ZIMRA has disallowed Zimplats to claim full capital expenditure as a deduction, a
practice that the company said stemmed from written undertakings it received from
the country’s government in 2001.
“To date, ZIMRA has also assessed the company based on these undertakings, which
were designed to put the company in the same position as other mining companies in
Zimbabwe that are not subject to a special mining lease,’ read a company statement.
The re-assessments, however, have been issued on the grounds that the legislation
required to give effect to the agreement Zimplats was not promulgated.
Despite agreeing to pay tax amount, Zimplats that said it would appeal paying
associated penalties and interest.
