Life Healthcare disputes taxman’s VAT bill

Life Healthcare is at loggerheads with the SA Revenue Service over a hefty tax bill, the private hospital group said on Thursday.

The company, which released its full-year results for the period to September, said the dispute with the taxman related to value added tax.

“The group is disputing the interpretation by the tax authorities in South Africa of a contractual arrangement between Life Healthcare and its subsidiary companies related to payroll services and the resultant VAT treatment. Even though there is no loss to the fiscus and the group’s strong legal and tax opinions on the matter, the group has prudently provided R199-million.”