Coronation raises its projected liabilities
Coronation Fund Managers, which currently owes the SARS R761m in disputed taxes, could see that liability grow further if a pending Constitutional Court case on the issue drags on.
When the Cape Town-headquartered asset manager released its interim results for the six months to end-March 2023, it estimated the tax liability at R716m but when it published its full-year results yesterday, it upped that liability estimate to R761m in disputed taxes.
CEO Anton Pillay said the R716m was management’s best estimate of the tax liability from the start of the tax dispute in 2012 until end-March 2023.
The updated figure of R761m reported in Coronation’s full-year results yesterday covered the period from 2012 until end-September 2023.
‘I don’t know what it (the estimated growth of the tax liability) will be. It’s really dependent on when the Constitutional Court rules at the end of the day,’ Pillay told Fin24.
However, he added that a rule-of-thumb estimate of R90m per annum was a ‘fair statement.’
At the heart of the dispute is whether the profits of Coronation’s Irish business – Coronation Global Fund Managers (CGFM) – should be included in the taxable income of its SA holding company.
SARS initially notified the group of the tax issue in 2017, saying profit earned by its Irish business should have been included in the taxable income of Coronation Investment Management SA, the group's holding company and locally registered tax entity.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
