| 2014
Millions |
2013 Millions |
||
35. |
Contingent liabilities, guarantees and subsequent events |
||
| At year end the Group had contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise. | |||
| Contingent liabilities | |||
| The Group has a contingent liability for Additional Profits Tax (APT) raised by Zimbabwe Revenue Authority (ZIMRA) in respect of the tax period 2007 to 2010 based on the assumption that this would be payable should the Zimplats appeal against the ZIMRA interpretation of the APT provisions fail in the Special Court of Tax Appeals. Management, supported by the opinions of its tax advisers, strongly disagrees with the ZIMRA interpretation of the provisions of the Act. The contingent liability at 30 June 2014 amounts to US$9.1 million. | |||
| The companies which are subject to water licences with the Department of Water Affairs are in the process of compiling a plan, including future cash flow, to ensure that adherence to the water management requirements, including treatment and rehabilitation requirements of the Department of Water Affairs, are met. This could result in a liability and a corresponding asset in the statement of financial position. Measurement of the liability is currently in process. | |||
| Guarantees | |||
| Financial guarantees | |||
| Friedshelf (notes 8 and 36) | 152 | 152 | |
| Other guarantees | |||
| Department of Mineral Resources | 1 150 | 892 | |
| Eskom | 63 | 63 | |
| Registrar of medical aids | 5 | 5 | |
| Total guarantees | 1 370 | 1 112 | |
| Subsequent events | |||
| For subsequent events, refer to the directors’ report. |