Page 44 - P6 Slide Taxation - Lecture Day 4
P. 44
EXAMPLE
On 1 july 2013 specuvest ltd (which is a resident) declared and paid a dividend of R14
per share to its shareholders. The company has 100 000 issued shares and its
shareholders are as follows:
• Eagleequity (pty) ltd (which is a resident of the republic). This company holds 15 000
of specuvest ltd’s shares and received a dividend of R210 000 (15 000 × R14).
• Bestscheme (a pension fund as defined in s 1). Bestscheme holds 35 000 of
specuvest ltd’s shares and received a dividend of R490 000 (35 000 × R14).
• Uk-co (a company and a resident in the uk). Uk-co holds 30 000 of specuvest ltd’s
shares and received a dividend of R420 000 (30 000 × R14). The double tax
agreement (DTA) between south africa and the UK provides that 5% dividends tax
may be levied in respect of this dividend.
• The remaining 20 000 shares of specuvest ltd are held by natural persons who are
residents of the republic. In total they received dividends of R280 000 (20 000 ×
R14).
Calculate the amount of dividends tax that is levied in respect of the dividends
paid to each of the company’s shareholders (assume in all cases that the
shareholders are the beneficial owners of the dividends). Assume that dividends
tax was already effective on all relevant dates.
