|
Trencor/Mobile - Settlement Of Income Tax Queries
TRENCOR LIMITED MOBILE INDUSTRIES LIMITED
(Incorporated in the Republic of (Incorporated in the Republic of South
South Africa) Africa)
(Registration no 1955/002869/06) (Registration no 1968/014997/06)
Share Code: ISIN: Share Code: ISIN:
TRE ZAE000007506 MOB ZAE000004602
TED2 ZAE000007282 MBN ZAE000012274
(`Trencor`) MOBD ZAE000004610
(`Mobile`)
SETTLEMENT OF INCOME TAX QUERIES
Holders of securities in Trencor and Mobile are advised that Trencor and the
Commissioner for the South African Revenue Service (`SARS`) have concluded an
agreement (`the agreement`) that will dispose of the income tax queries raised
by SARS on some of the group`s export partners relating to the tax treatment of
their participation in the container export trade. The agreement is subject to
all of the relevant export partners agreeing to be bound by its terms. The
agreement does not involve any admission by either SARS or Trencor and its
partners as to the correctness of the other parties` contentions.
In terms of the agreement, the tax treatment of the export partners up to and
including their 2004 tax years will be as contended for by Trencor and its
export partners. At the end of each of their respective first tax years ending
on or after 1 January 2005 the export partners collectively will, in effect,
accelerate payment of approximately R305 million in aggregate to SARS, being a
portion of the amount which Trencor and its partners had contended should be
paid over the following four to five years. At the end of the four to five year
period, the tax treatment of the partners will continue on the basis contended
for by Trencor and its export partners.
The board of Trencor remains confident that the merits of its legal position
would prevail in the face of a challenge from SARS. However, the board is of
the view that it is in the best interests of all stakeholders to settle this
matter on the above basis rather than to face further years of costly litigation
and continuing uncertainty.
Trencor will account for the effects of the agreement in its annual financial
statements as at 31 December 2004. It is estimated that the implementation of
the agreement and the arrangements with its partners will reduce undiluted
headline earnings in that year by 25,0 cents per share in the case of Trencor
and 2,0 cents per share in Mobile. The reduction in fully diluted earnings is
estimated to be 20,6 cents (Trencor) and 1,7 cents (Mobile).
The forecast financial information on which this announcement is based has not
been reviewed and reported on by the auditors in accordance with the JSE
Securities Exchange South Africa Listings Requirements.
ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
22 DECEMBER 2004
www.trencor.net
www.mobile-industries.net
Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited) Corporate Finance
Date: 22/12/2004 04:00:04 PM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
