Additional company tax on BSP will affect Tisa members, exec says

THE Additional Company Tax imposed on Bank South Pacific Financial Group (BSP) will affect the Teachers Savings and Loans Society (Tisa) in terms of dividends payout and capital gains, Tisa chief executive officer Michael Koisen said.
“However, we have plans to make up for the revenue in case BSP’s
dividend payments are affected,” he said.
“We hold almost four per cent of BSP shares and receive substantial dividends and capital gains when BSP share price moves.
“This year, we think it will have an effect on the performance of the company.
“We have not projected how much the loss (in dividends) will be because that is dependent on BSP’s performance as well.
“We understand BSP is also looking at alternative ways to replace revenue loss from that income tax that’s imposed by the Government,” he said.
“We also note that there is a judicial review being pursued by BSP (on the tax).”
BSP’s net profit after tax for the first quarter of 2022 was K69 million after deducting the full K190 million tax from its operating profit.
Chief executive officer Robin Fleming said despite the fact that the tax was not to be paid until September from an accounting standards perspective, “BSP has had to account for this tax in the first quarter”.