Coronation Investment Management SA (Pty) Limited v Commissioner for the South African Revenue Service (CCT 47/23)
Coronation Investment Management SA (Pty) Limited v Commissioner for the South African Revenue Service (CCT 47/23) [2024] ZACC 11; 2024 (9) BCLR 1128 (CC); 2024 (6) SA 310 (CC); 87 SATC 150 (21 June 2024)
The Constitutional Court held that CGFM's actual business was fund management, not investment management trading, and that its operations in Ireland met the requirements for a foreign business establishment under section 9D of the Income Tax Act. The Court found that CGFM's delegation of investment management trading to licensed third parties was lawful, standard industry practice, and did not undermine its economic substance or FBE status. The Supreme Court of Appeal erred by adopting a theoretical approach to CGFM's business and conflating fund management with investment management trading.…
Source excerpt
- Controlled Foreign Company
- Foreign Business Establishment
- Income Tax Exemption
- Economic Substance
- Outsourcing Of Primary Operations
- Anti Avoidance