Sars will harm SA tax residents if it succeeds in Coronation case, top court hears
Coronation believes its Irish subsidiary in Dublin falls into what tax law calls a ‘foreign business entity’
The SA Revenue Service’s (Sars’) view of tax regulations regarding foreign subsidiaries’ exemption from income tax will “materially impede SA tax residents” from competing on a level playing field in foreign markets.
This was the argument made by asset management firm Coronation in the Constitutional Court on Tuesday. It appealed to the apex court after the Supreme Court of Appeal (SCA) ruled against Coronation, resulting in it having to pay almost R800m in tax. ..
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