The taxman has dealt a severe blow to Invicta Holdings, the industrial products distributor that has tycoon Christo Wiese as a major shareholder. On Friday Invicta disclosed it would fork out a larger-than-expected settlement of R750m to the SA Revenue Service (Sars) over the next four years — a payment that stems from a dispute around a complicated empowerment investment structure put in place about 10 years ago. Market response The market, however, appeared to appreciate that the tax matter had been brought to finality with the Invicta share closing up. The final payment to Sars is R200m more than Invicta, which has persistently argued that the empowerment structures were tax compliant, had initially anticipated.
Co-head of Electus Fund Managers, Neil Brown, said R750m was a big Sars settlement considering that 18 months ago Invicta indicated it would be a zero payment. Business Day reported earlier this year that Invicta had announced a R400m taxation provision relating to ...
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