Coronation dividend unlikely after court rules it must pay hefty tax bill
The fund manager says it is unlikely to declare an interim dividend
The share price of Coronation Fund Managers slumped after the asset manager said it would probably suspend interim dividends after a Supreme Court of Appeal (SCA) ruling ordered it to pay additional taxes related to profits earned by its offshore operations.
The Cape Town-headquartered firm’s share price dropped as much as 11.8%, the steepest intraday fall since April 2020, before closing 11.05% down at R31.80. The loss came after Coronation issued a statement saying it had lost an appeal by the SA Revenue Service (Sars) over a tax dispute going back to 2012, which centred on whether the profits of its Irish subsidiary should have been included in the taxable income of the group’s SA holding company...
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