In a significant development, EOH Holdings Limited announced today that it has reached a settlement with the South African Revenue Service (SARS) regarding a longstanding PAYE dispute involving its subsidiary, EOH Abantu (Pty) Ltd t/a Highveld (“Abantu”). The resolution marks the conclusion of a protracted negotiation process and paves the way for the company to focus on its strategic objectives.
The settlement terms agreed upon by Abantu and SARS are as follows:
Terms | Details |
---|---|
Payment | Abantu is required to pay R112 million to SARS by March 1, 2024, aligning with its provisions. |
Forfeiture of Tax Receivable Credit | Abantu will forfeit its tax receivable credit of R6.9 million, impacting the income statement. |
Forfeiture of Assessed Loss | Abantu will forfeit its assessed loss of R34.5 million, with no direct effect on the balance sheet or income statement. |
To facilitate the payment to SARS, EOH Holdings has entered into an agreement with Standard Bank. The key terms of the agreement include:
Stephen van Coller, the CEO of EOH Holdings, expressed his satisfaction with the resolution, stating, “We are extremely excited to close out our last significant legacy issue. While this negotiation was frustrating at times from an EOH business perspective, I would like to assure South Africans that in solving this very technical and complex issue, the senior SARS officials were extremely diligent in ensuring the best possible outcome for South Africa.”
He further added, “EOH can now focus firmly on executing our Growth, Efficiency, Talent (GET) strategy. This large legacy issue was the final piece of the very complicated puzzle that was needed to be solved to allow the EOH Group to operate as a normal business.”
EOH Holdings expects to release its financial results for the six months ended January 31, 2024, on or about March 26, 2024. With the settlement of the PAYE dispute, the company looks forward to pursuing its growth initiatives and delivering value to its stakeholders.
This website uses cookies.