Platinum Group Metals Ltd. (TSE:PTM, NYSE Amex:PLG) reported that the consolidated financial statements of the Company for the three and nine month periods ended May 31, 2010 have been restated to reflect future income tax expense relating to the dissolution of the WBJV.
The press release is quoted as saying:
The Company initially estimated that the tax basis of the WBJV was approximately equal to the carrying amount on the consolidated financial statements. The Company has performed further analysis and now estimates a taxable temporary difference arising from the restructuring of the WBJV and the sale of WBJV Project 2 to Wesizwe for an additional interest in Maseve. This restatement is for accounting purposes and the resulting accrual for future income tax expense is a non-cash item. As previously reported the Company has determined that this transaction qualified for relief from current taxes payable in accordance with Section 42 of the South African Income Tax Act 58 of 1962.