Page 35 - P6 Slide Taxation - Lecture Day 4

EXAMPLE

For the period 1 january 2015 to 30 june 2015, DFH (pty) ltd’s

(‘DFG’) granted a R1 000 000 zero interest loan to louis

oosthuizen. Louis is a resident and dfg’s sole shareholder. The

loan was granted by virtue of the shares held by louis. DFH has a

30 june year-end.

Determine whether dfh is deemed to have paid a dividend for

dividends tax purposes. Assume that the official rate of

interest was 6% during the period 1 january 2015 to 30 june

2015.