Page 9 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 9
Example cont.
4. On 15 February 2015, Edco Ltd acquired 10% of its equity
shares in terms of a general repurchase of its own securities
as contemplated in s 5 of the JSE Listings Requirements. The
requirements of s 5 of the JSE Listings Requirements were
complied with. Edco Ltd paid the relevant shareholders R1
000 000 of which R100 000 represented a reduction in Edco
Ltd’s contributed tax capital.
5. On 15 January 2015, DLM (Pty) Ltd, a resident company,
paid an amount of R1 000 000 to its sole shareholder's wife
in respect of shares held by him in DLM (Pty) Ltd.
Determine whether the above amounts transferred or
applied by the relevant companies, qualifies as a dividend
as defined.
