Page 15 - P6 Slide Taxation - Lecture Day 4
P. 15
EXAMPLE
Bokaba furniture (pty) ltd’s share capital consists of 100 000 issued
shares. Peter bokaba holds 75% of its shares and tim legodi holds
25%. The balance of the company’s contributed tax capital was R100
000 on 1 october 2015. In terms of a company resolution, the
company decided to transfer an amount of R100 000 to peter bokaba
on 1 october 2015. The company’s directors determined that the
entire amount constitutes a transfer of the company’s contributed tax
capital.
Determine the amount of the dividend that was paid to peter
bokaba if any.
