Page 27 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 27
Example
ABC (Pty) Ltd, a resident company has a 31 March
financial year-end. The company distributed the following
amounts/assets to its sole shareholder on 1 July 2014
O A cash distribution of R1 000 000
O An in specie distribution of trading stock with a market
value of R500 000 (cost R300 000 on 10 April 2013)
O An in specie distribution of a building with a market
value of R1500 000 (cost R1 200 000 on 12 July
2006, no capital allowances were allowed)
Calculate the (A) normal tax and (B) dividend tax
consequences for ABC (Pty) Ltd
