SARS moves to seize PetroSA refinery over R4.5bn tax debt

Revenue authority moves in to attach PetroSA's Gas-to-Liquids refinery in Mossel Bay in escalation of dispute over licensing and duty fees

- BANELE GININDZA

PETROSA executives told Parliament this week that Sars officials arrived at the company's offices last Tuesday to discuss a repayment plan, followed shortly by a formal notice demanding a response by Friday, 5 December. | SUPPLIED

THE South African Revenue Service (Sars) has moved to attach PetroSA's mothballed Gas-to-Liquids (GTL) refinery in Mossel Bay as the state-owned oil company struggles to settle more than R4.5 billion in unpaid licensing and duty fees.

PetroSA executives told Parliament this week that Sars officials arrived at the company's offices last Tuesday to discuss a repayment plan, followed shortly by a formal notice demanding a response by Friday, 5 December.

Failure to comply would allow Sars to proceed with attaching the refinery as security for the debt.

Nombulelo Tyandela, PetroSA's chief financial office, said the refinery's book value, R340 million, falls far short of the amount owed.

"Looking at the balance sheet, the refinery is sitting at R340m. We owe Sars R4.5bn. The attachment won't cover sufficiently what they want to get from the refinery," Tyandela said.

"We got a notification call on Monday from Sars that they are going to Mossel Bay to identify the asset. They will allow us to continue operating the asset but we cannot encumber it to anyone because they are holding the asset as a guarantee on the amount we owe."