Distell considers its options

Drinks producer Distell has
yet to make a decision on
whether they will return to
court after their appeal to the
Gauteng High Court against
an estimated R28-million tax
liability was dismissed earlier
this month.
Dennis Matsane, Distell’s
corporate communications
manager, told FTW while legal
counsel had advised that the
company did have sufficient
grounds to pursue an appeal,
no decision had yet been made.
He would not elaborate on
what these grounds entailed.
Distell and the South African
Revenue Service (Sars) have
been at loggerheads since 2006
over the tariff determination
for its premier brand, Amarula
Cream, and several of its other
brands after an excise duty
reclassification. According to
Sars the products are spirits
and therefore a different tariff
classification applies to the
products, whilst Distell is of the
opinion that these brands are
wines and therefore not subject
to the same tax as spirits.