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Article

23 Oct 2014

Author:
Lonmin Media Release

So. Africa: Lonmin reacts to 'Cyril Ramaphosa Lonmin tax-dodge' story

'Lonmin letter to the editor - Mail & Guardian', 23 Sept, 2014: The M&G’s story on Lonmin’s historical tax affairs published on...19 september 2014 contained significant inaccuracies and material omissions...Any suggestions of potential illegality...is seriously damaging to the Company’s reputation not least because such allegations are wholly and absolutely false...The Western Metal Sales...structure referred to was a structure not uncommon to old world conglomerates. The structure was in no way illegal and did not benefit Lonmin from a tax perspective. Lonmin remained liable for the payment of taxes in the UK...A reference in the Farlam Commisison to the 2012 financial statements of Western Platinum Limited...was a clear error in the Notes to the Financial Statements...and was explained as such...The Western Metal Sales structure...ha[s]...been discussed regularly...with the South African Revenue Services (SARS) regarding transfer pricing...These facts clearly demonstrate that Lonmin’s tax affairs during the period in questions were entirely legal.. The Company pays tax fully and properly in all jurisdictions in which it operates as a matter of policy...

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