Exxaro report selector 2019

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Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2019

Currently viewing: CHAPTER 13 / 13.4 Contingent liabilities

13.4 Contingent liabilities

  Group     Company  
At 31 December 2019
Rm
  2018
Rm
    2019
Rm
  2018
Rm
 
Pending litigation and other claims1 1 103   1 155            
Operational guarantees2 4 506   3 062     452   18  
– Financial guarantees ceded to the DMR 3 994   2 971            
– Other financial guarantees 512   91     452   18  
Total contingent liabilities 5 609   4 217     452   18  
1 Tax disputes with SARS have been settled. Consists of legal cases with Exxaro as defendant.
2 Include guarantees to banks and other institutions in the normal course of business from which it is anticipated that no material liabilities will arise.

The timing and occurrence of any possible outflows of the contingent liabilities above are uncertain.

SARS

As previously reported, on 30 March 2016, SARS had issued additional assessments to the amount of R442 million (R199 million tax payable, R91 million interest and R152 million penalties) to which Exxaro formally objected. The matter was settled outside of the Tax Court. A settlement agreement was concluded and signed on 30 September 2019 in terms of which SARS must refund Exxaro an amount of R24 million.

Share of equity-accounted investments’ contingent consideration

  Group     Company  
At 31 December 2019
Rm
  2018
Rm
    2019
Rm
  2018
Rm
 
Share of contingent liabilities of equity-accounted investments1 1 060   726            
1 Mainly operational guarantees issued by financial institutions relating to environmental rehabilitation and closure costs.