Page 16 - P6 Slide Taxation - Lecture Day 4
P. 16
SOLUTION
Total amount transferred to peter bokaba R100 000
Less: amount indicated by directors to represents a reduction in the
company’s contributed tax capital (i.E. R100 000). This amount may,
however, not exceed R75 000
(R100 000 total contributed tax capital prior to the transfer) × 75 000 (number
of shares that peter held) / 100 000 (total number of shares) = (75 000)
Dividend as defined R25 000
• Note
The dividend portion of the amount transferred to peter bokaba is subject to
dividends tax @ 15%
