Page 13 - P6 Slide Taxation - Lecture Day 4
P. 13
WHAT IS CONTRIBUTED TAX CAPITAL
How will the holder of a share know whether the distribution
received on its shareholding constitutes a distribution from…
• Retained earnings? Or
• Contributed tax capital?
Now a requirement by law that the co (directors) must notify
the holders of share in writing at each distribution to what
extent the distribution constitutes a reduction in contributed tax
capital .
