EOH Abantu, a subsidiary of EOH Holdings, has resolved a longstanding tax dispute with the South African Revenue Service (Sars).
- The dispute involved the payment of PAYE taxes, and EOH has agreed to pay R112 million by the specified deadline.
- The settlement amount is covered by Abantu’s provisions and will not impact the group’s income statement.
- As part of the agreement, Abantu will forfeit a tax credit of R6.9 million and an assessed loss of R34.5 million, with no negative impact on financial statements.
- EOH has secured a temporary increase in facilities from Standard Bank to settle the tax debt by March 1.
- The successful sale of non-core assets limits additional facility requirements to R63 million.
- The tax settlement marks the resolution of EOH’s last significant legacy issue, according to outgoing CEO Stephen van Coller.