Sasol Oil (Pty) Ltd - Tax Litigation Update

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Nov 14, 2018, 14:44 ET

JOHANNESBURG, November 14, 2018 /PRNewswire/ --

As previously reported, the South African Revenue Service ("SARS") issued revised assessments for Sasol Oil (Pty) Ltd ("Sasol Oil") relating to a dispute around its international crude oil procurement activities for the 2005 to 2014 tax years. The litigation in the Tax Court, relating to the international crude oil procurement activities for the 2005 to 2007 years of assessment, was concluded and judgement was delivered in favour of SARS on 30 June 2017. Sasol Oil made a provision in its 2018 annual financial statements of R1.3 billion, including penalties and interest, which covers the 2005 to 2014 tax years relating to the tax assessment ground to which this litigation is related.

Sasol Oil filed an appeal against the judgment by the Tax Court with the Supreme Court of Appeal. On 9 November, the Supreme Court of Appeal decided to uphold the appeal and to set aside the ruling by the Tax Court. The Court effectively confirmed Sasol Oil's view that the ground for additional taxation of Sasol Oil's international crude oil procurement activities has not been fulfilled.

On the basis of this judgement, Sasol Oil will reverse the accrual of R1.3 billion.

Disclaimer - Forward-looking statements

Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" and "project" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

Investor Relations:
Moveshen Moodley, Chief Investor Relations Officer
Telephone: +27(0)10-344-8052

SOURCE Sasol Limited