Publications
Partners
Johannesburg - An analyst raised a red flag around a potential tax liability for asset management group Stanlib's dividend income fund on Thursday.
UBS analyst Michael Christelis queried management at the interim results presentation of Liberty Holdings [JSE:LBH], Stanlib's parent company, saying the South African Revenue Services is currently seeking ways to close an exploited tax loophole. He queried whether or not Stanlib would be liable should Sars take action on the legal structure of such funds.
Dividend income funds are the subject of a joint investigation by Sars, the Financial Services Board and National Treasury into how generated dividends should be taxed, posing the threat that Sars may claim lost revenue.
A directive on the issue is expected to come through before the end of the year.
Thabo Dloti, CEO of Stanlib, responded to Christelis' enquiry saying: "We sought legal advice before we launched the fund and we do not believe that there is increased risk in the product as it stands," he said.
At the end of the June quarter, Stanlib's dividend income fund had around R6bn in assets under management.
- Fin24.com
UBS analyst Michael Christelis queried management at the interim results presentation of Liberty Holdings [JSE:LBH], Stanlib's parent company, saying the South African Revenue Services is currently seeking ways to close an exploited tax loophole. He queried whether or not Stanlib would be liable should Sars take action on the legal structure of such funds.
Dividend income funds are the subject of a joint investigation by Sars, the Financial Services Board and National Treasury into how generated dividends should be taxed, posing the threat that Sars may claim lost revenue.
A directive on the issue is expected to come through before the end of the year.
Thabo Dloti, CEO of Stanlib, responded to Christelis' enquiry saying: "We sought legal advice before we launched the fund and we do not believe that there is increased risk in the product as it stands," he said.
At the end of the June quarter, Stanlib's dividend income fund had around R6bn in assets under management.
- Fin24.com
