- Resolution Of Dispute With South African Revenue Services
Business Connexion Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/005282/06)
Share code: BCX
ISIN: ZAE000054631
(`BCX` or `the group`)
RESOLUTION OF DISPUTE WITH SOUTH AFRICAN REVENUE SERVICES
BCX shareholders are advised that Business Connexion (Proprietary) Limited, the
major operating subsidiary of BCX, has reached agreement with the South African
Revenue Services (SARS) on the value of trademarks (the Persetel and Q Data
trademarks) claimed as a deduction from its taxable income for the financial
years 1995 to 2004. Historically the group has indicated that up to 31 May 2004,
the total possible exposure to SARS including interest, amounted to
approximately R350 million. Business Connexion (Proprietary) Limited, following
the conclusion of an agreement with SARS, has paid an amount of R159m to SARS in
full settlement of its taxation liabilities relating to the trademark deductions
up to 31 May 2004.
The group`s Non Distributable Reserves (`NDR`) at 31 May 2004 of R94.2m relating
to the trademark deductions will now be released. The difference between the
payment to SARS and the NDR will impact on the current year`s results
notwithstanding that it relates to prior financial years.
Midrand
7 April 2005
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 07/04/2005 02:10:07 PM
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