Page 17 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 17
Solution
Total amount transferred to Peter Bokaba R100 000
Less: Amount indicated by directors to represents a
reduction in the company’s contributed tax capital (i.e.
R100 000). This amount may, however, not exceed R75
000
(R100 000 total contributed tax capital prior to the
transfer) × 75 000 (number of shares that Peter held) /
100 000 (total number of shares) = (75 000)
Dividend as defined R25 000
O Note
The dividend portion of the amount transferred to Peter
Bokaba is subject to dividends tax @ 15%
