Hefty tax bill weighs on Kumba share price
The miner's share price fell as much as 8.79% on Friday after the announcement, hitting a low of R194.39
Kumba Iron Ore took a knock on Friday after it agreed to settle a R2.5-billion tax bill with the South African Revenue Service. The miner's share price fell as much as 8.79% after the announcement, hitting a low of R194.39. Kumba said it had already made provision for R1.5-billion in its 2015 financial statements to be paid to SARS, and would earmark a further R1-billion in its 2016 statements. It would settle its bill with the tax man in the first quarter of this year, Kumba said on Friday. The deal "provides clarity for all ... enabling us to focus our efforts on ensuring that Kumba continues to operate at the optimal level, and furthers its position as a major economic and social contributor to the South African economy," said Kumba CEO Themba Mkhwanazi. In February last year, Kumba announced it owed SARS R5.5-billion after the service had done a tax assessment of the company for the years 2006 to 2010. Kumba's agreement with SARS involved Sishen Iron Ore, a subsidiary in which t...
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