Page 8 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 8
Example
1. On 1 April 2015, XDF Ltd, a resident company, paid a
dividend of R1,50 per share to its 1 million equity
shareholders.
2. On 31 October 2015, Adco Holdings (Pty) Ltd was
voluntarily liquidated and distributed R4 000 000 to its
equity shareholders, of which R200 000 represented a
reduction in Adco Holdings (Pty) Ltd’s contributed tax
capital.
3. On 15 December 2015, ABS (Pty) Ltd acquired 10% of its
equity shares in terms of a share buyback. ABS (Pty) Ltd
paid the relevant shareholders R1 000 000 of which R100
000 represented a reduction in ABS (Pty) Ltd’s contributed
tax capital.
