Taxpayer prepares for R415 million showdown with SARS
Mining and agriculture company Omnia has said it is preparing for tax court proceedings over a dispute with the South African Revenue Service (SARS), should other procedures fall through.
The dispute concerns a transfer pricing audit conducted by the revenue service regarding Omnia’s tax assessments for 2014 to 2016.
The company said it disputes these additional assessments and has engaged with SARS to find a resolution.
“The Group continues to dispute additional assessments raised by SARS following the transfer pricing audit relating to the 2014 to 2016 years of assessment,” Omnia said in its latest interim report.
“Following extensive engagement, Omnia terminated the Alternative Dispute Resolution (ADR) proceedings on 3 August 2026 as the Group was unable to reach an equitable resolution of the matter with SARS.”
Although ADR proceedings fell through, the company said it continues to seek a resolution through a mutual agreement procedure.
“The Group continues to pursue resolution of the dispute through the Mutual Agreement Procedure, while in parallel progressing the preparatory steps for Tax Court proceedings,” it said.
The company noted that the dispute would go to Tax Court, depending on the results of the mutual agreement procedure.
It said the court proceedings “may be held in abeyance pending the outcome of the Mutual Agreement Procedure.”
Omnia’s dispute with SARS has lasted years, since the revenue service issued a letter of audit findings in December 2020.
The audit indicated “possible upward adjustment to taxable income” between 2014 and 2016, according to Omnia’s 2021 financial report.
These findings could result in additional tax liability for the company, which in 2021 amounted to approximately R415 million.
“The additional assessments result in a cumulative additional tax liability of approximately R415 million and understatement penalties of R165 million,” Omnia said in 2021.
“Interest of approximately R328 million has been levied on the additional assessments.”
Another dispute
Along with its dispute over SARS’ 2020 audit findings, Omnia has challenged the revenue service over assessments related to its subsidiary in Mauritius.
In August 2026, SARS issued estimated assessments related to the tax residency of one of the group’s subsidiaries, totalling approximately R726 million.
“On 21 August 2026, SARS issued estimated assessments totalling approximately R726 million, including penalties and interest to 30 September 2026, relating to the tax residency of a Mauritian subsidiary of the Group,” Omnia said.
“The Group disputes the basis of the assessments and maintains its position on the subsidiary’s tax residency.”
In its interim report for the six months ended 30 September 2026, Omnia also noted that its proposed acquisition by Solar Group is progressing.
The group announced in September 2026 that it had agreed to a proposed transaction under which Solar Group, an Indian technology company, would fully acquire the company.
The proposed transaction would involve Solar Group purchasing all issued ordinary Omnia shares at R134.50 per share.
In its interim report, Omnia said this transaction had been approved by its shareholders and was now pending regulatory approval.
In November 2026, 99.97% of the company’s stakeholders voted in favour of the transaction, which Omnia called a “significant milestone”.
“This outcome reflects shareholder endorsement for the transaction and a significant milestone in the process,” the company said.
“The transaction remains subject to the applicable conditions, with capital allocation and shareholder distributions to be managed in accordance with the relevant transaction undertakings,” Omnia said.
The company added that the acquisition would accelerate its growth and expand its market access.
“The proposed combination is expected to support the acceleration of Omnia’s growth strategy across Mining and Agriculture through expanded market access, manufacturing capabilities and research and development,” it said.
Loading ...