Page 37 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 37
Solution
Louis Oosthuizen
= resident
= connected person Deemed
≠ company dividend
loan was granted by virtue of the shares held
Amount of dividend
The amount of the dividend is R30 000
(R1 000 000 (outstanding balance of the loan) × 6%
(official rate of interest) – 0% (actual interest) × 6/12 (the
period that Louis owed the amount during DFH’s 2013
year of assessment)