Coronation deals tax blow to SARS

Asset management firm Coronation has won a case at the Constitutional Court over a R794 million tax matter.

The South African Revenue Service (SARS) accused Coronation of underestimating the taxes owed from its Irish subsidiary.

The Supreme Court of Appeal agreed with the taxman and ruled that the asset manager must pay the nearly R800 million amount.

However, the Constitutional Court has now ruled in favour of Coronation, stating that the group correctly interpreted and applied the relevant tax legislation.

Following the judgement, the group has also withdrawn a cautionary announcement.

Markets have responded positively to the update, with the group’s share price rising by roughly 4% today, 21 June.

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