JOHANNESBURG (Reuters) – South African petrochemicals group Sasol said on Friday it will reverse a provision of 1.3 billion rand ($91 million) after a previous unfavourable ruling over a tax dispute with the revenue service was overturned on appeal.
Sasol, the world’s top manufacturer of motor fuel from coal, said in a statement it made the provision after a tax court ruled in favour of the South African Revenue Service (SARS).
The revenue service had argued in court that some crude oil procurement contracts between Sasol’s Oil division and other Sasol units should be disregarded for tax purposes, which led to a higher tax liability for Sasol Oil.
Sasol then set aside the provision to cover penalties and interest payments relating to the tax dispute while appealing the case at the Supreme Court of Appeal, which on Friday set aside the previous ruling.
($1 = 14.2528 rand)
Reporting by Tanisha Heiberg; Editing by James Macharia