Asset management company Coronation Fund Managers has won its case at the Constitutional Court over a R794 million tax matter.
The South African Revenue Service (SARS) had accused Coronation of underestimating the taxes owed from its Dublin-based Coronation Global Fund Managers (CGFM) subsidiary.
The Supreme Court of Appeal (SCA) agreed with SARS and ruled that the asset manager must pay the nearly R800 million amount.
However, according to Moneyweb, the Constitutional Court on Friday ruled in favour of Coronation, stating that the group correctly interpreted and applied the relevant tax legislation.
The matter has been dragging on since 2012 and relates to South Africa’s controlled foreign company (CFC) rules and the foreign business establishment tax exemption.
The Constitutional Court judgment now sets aside the SCA decision.
Markets responded positively to the update, with the group’s share price rising by roughly 5% on Friday, 21 June.
Who are Coronation?
Coronation Fund Managers is a South African third-party fund management company, headquartered in Cape Town.
The company has locations in all South African major centres and offices in, Ireland, United Kingdom and in Namibia where it is represented by Namibia Asset Management a strategic partner.