Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 83
for the year ended 30 June
Rm
2019
Restated
Rm
7 430
2 140
3 206
7 478
(48)
2 542
(402)
3 804
(598)
–
2 079
2
(1 212)
–
2 640
2 106
(27)
2 242
(3 454)
2 544
96
9 509
(9 779)
930
(9 324)
5 846
1 732
(9 464)
(315)
(9 724)
400
1 715
17
455
(17 996)
(4 775)
339
124
(8)
(20 375)
2 375
4
(4 831)
55
1
185
(26 390)
2 803
Taxation
South African normal tax
current year
prior years
Dividend withholding tax
Foreign tax
current year
prior years*
Income tax
Deferred tax – South Africa
15
current year**
prior years
Deferred tax – foreign
15
current year***
prior years*
tax rate change
*
2020 relates mainly to the relief provided to companies in the United States under the Coronavirus Aid, Relief, and Economic Security Act,
(CARES Act) allowing taxpayers to carry back losses incurred during 2018 to 2020 for five years.
** The decrease from 2019 to 2020 relates to impairments accounted for in the 2020 financial year.
*** Increase in the prior year relates mainly to tax losses incurred at our US operations where we anticipate sufficient profits to be generated in
future to utilise the deferred tax asset against.
Contingent liability
Following a request by SARS for information on Sasol Financing International Plc (SFI) which performs an off-shore treasury
function for Sasol, SARS proceeded with an audit over a number of tax years. This audit culminated in the issuance of a final audit
letter on 16 February 2018. Consequently, revised assessments were issued by SARS in respect of the 2002 to 2012 tax years.
Sasol objected to these revised assessments. The dispute relates to the place of effective management of SFI.
After the submission of Sasol’s objection to the disputed assessments and following requests for further information by SARS
at the end of 2018, SARS rejected Sasol’s objection. On 17 April 2019, Sasol appealed the decision to the Tax Court in terms of the
relevant provisions of the Tax Administration Act. The parties have agreed to suspend the litigation in the Tax Court pending the
outcome of the legal review application.
In addition to the objection to the revised assessments, Sasol has also launched a judicial review application against the SARS
decision to register SFI as a South African taxpayer. The Tax Court does not have jurisdiction to determine the first ground of
Sasol’s objection, namely that the disputed assessments constitute unlawful, substantially unreasonable and procedurally unfair
administrative action. Accordingly, a further review application has been filed in the High Court.
SASOL LIMITED COMPANY
Sasol Financing International (SFI)/SARS
In respect of this review application the Parties are in dispute about the non-disclosure by SARS of documentation and the
necessary interlocutory processes to resolve this dispute are ongoing. Sasol’s application to compel SARS to disclose additional
documents was heard on 19 February 2020 and judgement was delivered on 14 July 2020, which was materially found in SFI’s
favour thereby ordering SARS to disclose specific additional documents which SARS submitted on 28 July 2020.
All pleadings were exchanged relating to the 1st judicial review and a court hearing date is imminent. Further pleadings are being
exchanged relating to the 2nd judicial review after which a court hearing date will be set. A contingent liability of R2,58 billion
(2020 – R2,5 billion) (including interest and penalties) is reported in respect of this matter as at 30 June 2021.
OTHER
13
Note
2020
Restated
Rm
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
2021
NOTES TO THE FINANCIAL STATEMENTS
TAXATION
81
Sasol Annual Financial Statements 2021