Earlier in February, the Supreme Court of Appeal , which had to decide whether the Irish business qualifies for the tax exemption, ruled in favour of SARS. This prompted Coronation's shares to crash by more than double digits, wiping out more than R1 billion in shareholder value.
"As conveyed in a previous announcement, the company is disappointed with the SCA judgment in favour of SARS, which overturned the decision of the Western Cape Tax Court," Coronation said on Friday. "The company applied to the Constitutional Court for leave to appeal the SCA judgement as it is firmly of the view that the SCA erred in its ruling. Should the Constitutional Court grant leave to the parties for the matter to be heard, it is likely to be heard in the 2024 financial year." Coronation's 2023 financial year concludes at the end of September.
Shares in Coronation had risen slightly on Friday morning, but have fallen by almost a fifth since the judgment.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.