Page 26 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax

Tax consequences of in specie

dividends

Person (NP, Co, CC,
Distribute dividend
Co/CC Trust etc.)
in specie
that holds shares

Distribution in specie

• If distribution = capital asset •If distribution = capital asset

Recoupment s 8(4) + CGT par 11(e) Possible wear-and-tear

and par 75 Proceeds = MV • If distribution = trading stock
• If distribution = trading stock s 22(4) deduction @ MV (deemed

Recoupment s 22(8)(b)(iii) @ MV acquired @ MV)