By Thys Khiba
South African and Australian governments are expected to be paid an “exit tax” of more than R5.4 billion by AngloGold Ashanti as the miner will be moving the primary listing of its shares to the New York Stock Exchange (NYSE) and its domicile to London.
AngloGold Ashanti now maintains secondary listings on SA’s Johannesburg Stock Exchange and A2X markets as well as the Ghana Stock Exchange.
AngloGold Ashanti will pay SA’s tax authority estimated at R4.6 billion in Securities Transfer Tax and dividend withholding tax. This amount is expected to boost SARS which needs money to assist the government meet its expenditure obligations.
Meanwhile Australia’s government Landholder Duties will get an estimated $46 million (R853 million). The final amounts will be determined by the currency exchange rates on the payment day.
AngloGold
According to the miner the tax amounts were calculated based on its closing share price of $18.15 and $7.6 billion closing market capitalisation on the NYSE on 22 September, the day before its primary listing officially moved to the NYSE from the Johannesburg bourse.
The move by the gold miner has been viewed as a significant loss to SA.
The SA state-owned enterprise (SOE), Eskom is cited as one of the reasons why the country is becoming less and less attractive to investors. Eskom has been struggling to supply consistent electricity to households, businesses and mining companies.
Mining companies depend on the SOE companies for the provision of electricity and shipping their commodities to customers. Another SOE Transnet, specialising in railway and ports, moved the least amount of goods in 30 years.
Meanwhile, the gold miner that was first formed by the Oppenheimer family more than a century ago has not maintained any South African operations since 2020.
Former director-general of South Africa’s National Treasury and then chief executive of Absa Group, currently Chairwoman AngloGold Ashanti Maria Ramos and her team sold its Mponeng Mine and associated operations in September 2020 to Harmony Gold.
This makes its direct tax obligations to the SA government have dropped from mining royalties, corporate income and other taxes and employee pay-as-you-earn tax to now only those levied on dividends and trade of securities on the JSE.
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