Ann Crotty Writer-at-large

A R178bn revaluation of an asset held by South African-based Steinhoff Investments could come under scrutiny as PwC continues to investigate the "accounting irregularities" that wiped out R230bn of value at the parent company. The revalued asset was a 100% shareholding in Steinhoff Finance Holdings, known as Steinhoff Austria, which was valued at R19.99bn in Steinhoff Investments’s 2015 accounts. During financial 2016, these shares were distributed to parent Steinhoff International at a value of R198bn. The accounts of Steinhoff International and those of Steinhoff Investments provide no explanation for the hefty increase in the value of this asset. Although Steinhoff Investments treats the R178bn as an operating profit in its 2016 accounts, it did not have to pay any tax on that profit as it was made in terms of section 46 of SA’s income tax act and as such escaped tax liability. The R178bn revaluation at which the distribution was done and the fact it was distributed to German-lis...

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