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Business Update
HUDACO INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1985/004617/06)
Share code: HDC & ISIN: ZAE000003273
(“Hudaco”)
BUSINESS UPDATE
On 31 January 2013, in its announcement of results for the year ended 30 November 2012, Hudaco
advised that SARS had indicated that it intended taxing the group on certain aspects flowing from
the implementation of its BEE structure. As stated in the announcement, senior counsel indicated
that Hudaco's case will stand up to scrutiny. This positive view was expressed even though the
communication from SARS referred to other arrangements connected to the structure which were
apparently ascertained by SARS from third parties and about which Hudaco previously had no
knowledge.
Stakeholders are advised that assessments have now been received from SARS for the financial years
2007 to 2011. Reasons have not yet been provided by SARS but it seems that they are not attacking
the BEE transaction itself, but the other arrangements entered into by third parties without
Hudaco’s knowledge.
The amounts assessed by SARS are as follows: Tax on re-categorised interest imputed on Hudaco–
R279m, tax imputed on Hudaco as it allegedly became entitled to an amount because of the security
arrangements – R143m, impact of STC credits disallowed – R72m, interest – R446m, penalties –
R987m. Hudaco is confident of refuting the assessments, will lodge objection thereto and will
pursue all appropriate legal remedies, including application for a deferral of payment until the
matter has been resolved.
Johannesburg
12 February 2013
Sponsor
Nedbank Capital
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