A settlement has been reached between the South African Revenue Service (Sars) and Nampak, Africa’s largest packaging manufacturer.
In a joint statement by Sars and Nampak on Tuesday, the parties said they had agreed to settlement terms to resolve a matter relating to outstanding taxes, which were in dispute for the last two years.
In 2006, Nampak submitted an objection to the R738-million tax claim it received from Sars. Most of the claims related to a company called Malbak, which Nampak acquired in 2002.
The claim was reportedly made up of R223-million in taxes allegedly owed, R128-million in penalties and R387-million in interest.
Nampak chief financial officer Tim Jacobs said the total settlement amount was R250-million, covering the historical Malbak contingent liabilities as well as historical Nampak matters.
The settlement cleared ”all our historical tax matters”, said Jacobs.
He said the company was delighted with the settlement and could now focus on the day-to-day running of the company.
Earlier this year, an agreement was reached between Nampak and Sars to establish a task team made up of representatives from both sides to resolve the matter.
”This settlement brings to a close historical tax matters, which date back several years, and is a good illustration of what can be achieved through collaboration,” the parties said the statement. — Sapa