Page 55 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 55

Example





               DueCo Ltd is a resident company in the United Kingdom. It is

               not a resident of the Republic. Its10 000 000 issued shares
               are listed on JSE Limited. On 1 August 2014 the company

               declared a dividend of £2,60 per share held by registered

               holders of shares on 15 August 2014. The company paid the
               total dividend of £26 000 000 on 20 August 2014 to a

               central securities depository participant as contemplated in

               par (a) of the definition of ‘regulated intermediary’ in s 64D.
               The central securities depository participant paid the dividend

               on 25 August 2014 to the registered holders of shares, who

               are all natural persons that are residents of the Republic (the
               relevant exchange rate was £1:R12,85 on this date). The

               dividend declared by DueCo Ltd was subject to £1 820 000

               non-refundable tax in the United Kingdom.

               Determine the amount of dividends tax that had to be
               withheld by the central securities depository participant.
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