CARMEL RICKARD: Taxing twist for Nedbank
Nedbank SA may be affected by a multimillion-rand tax bill incurred by its Zimbabwean subsidiary, after the courts found in favour of the taxman
A recent court decision in Zimbabwe will surely have Nedbank SA smarting. Thanks to a tax assessment just approved by Zimbabwe’s highest court, Nedbank’s subsidiary in that country must pay additional tax and penalties for the 2011 tax year amounting to $944,615 (about R14.5m). And because the disputed assessment includes what the court described as benefits for SA holding company Nedbank, its figures could be affected too.
The decision, dated November 12, upholds a 2019 finding by the Special Court for Income Tax Appeals on the income tax self-assessment carried out by MBCA Bank (now called Nedbank Zimbabwe) for its 2011 tax year. MBCA, a registered bank in Zimbabwe, is a subsidiary of MBCA Holdings. That holding company is, in turn, a subsidiary of Nedbank SA...
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