In South Africa Kumba Iron Ore to oppose $340m tax claim

"Kumba and its subsidiaries believe that all taxes owed under South African tax legislation have been paid and that we comply with all applicable tax laws in all jurisdictions in which we operate," the firm said.

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A worker signals to a Haul truck driver at Kumba Iron Ore, the world's largest iron ore mines in Khathu, Northern Cape Province November 15, 2011. REUTERS/Siphiwe Sibeko play A worker signals to a Haul truck driver at Kumba Iron Ore, the world's largest iron ore mines in Khathu, Northern Cape Province November 15, 2011. REUTERS/Siphiwe Sibeko (Reuters)
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Kumba Iron Ore plans to contest a 5.5 billion rand ($340 million) claim imposed by South Africa's Revenue Services (SARS), the company said on Monday.

SARS levied the charge on Kumba's subsidiary Sishen Iron Ore and includes 3.7 billion rand in interest and penalties between 2006 and 2010, a statement on its website said.

Kumba said it will apply to have the payment suspended until the matter was resolved.

"Kumba and its subsidiaries believe that all taxes owed under South African tax legislation have been paid and that we comply with all applicable tax laws in all jurisdictions in which we operate," the firm said.

Chief Executive Norman Mbazima said in 2015, a year when the iron ore price fell sharply, it still paid billions in taxes, royalties, salaries and local procurement, among others.

Kumba parent company Anglo American plans to sell of its majority stake in the iron ore producer along with other loss-making bulk commodity businesses.

($1 = 16.1707 rand)

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