Page 45 - Chapters 17 & 18 - Dividends & Dividend Tax

Example

On 1 July 2013 Specuvest Ltd (which is a resident)

declared and paid a dividend of R14 per share to its

shareholders. The company has 100 000 issued shares

and its shareholders are as follows:

• EagleEquity (Pty) Ltd (which is a resident of the

Republic). This company holds 15 000 of Specuvest

Ltd’s shares and received a dividend of R210 000 (15

000 × R14).

• BestScheme (a pension fund as defined in s 1).

BestScheme holds 35 000 of Specuvest Ltd’s shares

and received a dividend of R490 000 (35 000 × R14).