| Tue 31 Mar 2009, 9:51 | | JDG - JD Group - Resolution of contingent liabilities and interim dividend |
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JDG
JDG
JDG - JD Group - Resolution of contingent liabilities and interim dividend
JD Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009108/06)
ISIN: ZAE000030771
JSE code: JDG
(the "Group")
RESOLUTION OF OUTSTANDING CONTINGENT LIABILITIES AND INTERIM DIVIDEND
It is common knowledge that the South African Revenue Service ("SARS")
has reached an accord with the major banks to address certain tax structures
that SARS has deemed to be an undesirable practice.
As will be observed from the contingent liabilities note in the Group`s
annual financial statements at 31 August 2008, a contingency of R773 million
was disclosed. These liabilities, relating to outstanding tax structures, have
over the past number of years resulted in a considerable amount of speculation
and uncertainty. This contingency at the end of the 2009 financial year would
have increased to R858 million.
Against this background, and in order to remove all such uncertainty and the
Group`s exposure to these contingent liabilities, the Group resolved to settle
the matter with SARS. As a result of the settlement, the Group will reflect a
once off charge to taxation of R344 million in the 2009 financial results.
The board of directors has therefore decided not to declare an interim dividend
for the first six months of the 2009 financial year in order to facilitate the
above, but will reconsider the position at year end.
Johannesburg
31 March 2009
SPONSOR
PSG Capital (Proprietary) Limited
Building No 8, Woodmead Estate,
1 Woodmead Drive, Woodmead, Sandton, 2157
Telephone: +27 11 797 8400
Facsimile: +27 11 802 3689
Date: 31/03/2009 09:51:00 Produced by the JSE SENS Department.
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