Bonanza due for Anuva investors after turnaround
Anuva Investments, an investment company formed to allow investors to take advantage of section 12J of the Income Tax Act, has delivered some promising initial returns. Section 12J was created to encourage taxpayers to invest in small-and medium-size enterprises. Taxpayers investing in a registered venture capital company are entitled to a 100% tax deduction on money invested (notching up an immediate return of up to 41% through the reduction in taxes payable on their taxable income). There are about 42 section 12J venture capital companies in SA, but most are believed to be dormant. Anuva’s successes have been spurred by an investment in appliance repair specialist MasterCare, which was placed in business rescue a few years ago. Anuva’s shareholders are now in line for a R5m dividend payout for the year to February. This payout is equivalent to about 24% of their initial investment. Anuva’s financial statements show that MasterCare generated R22.4m in revenue in the 11 months to en...
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