Page 29 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 29
Solution
(B) Dividend tax consequences
Cash distribution – ABC (Pty) Ltd has to withhold
dividend tax of (1 000 000 x 15%)
Distribution of trading stock – dividend tax liability for
ABC (Pty) Ltd of (500 000 x 15%)
Distribution of building – dividend tax liability for ABC
(Pty) Ltd of (1 500 000 x 15%)
Total dividend tax = 450 000
