Page 6 - P6 Slide Taxation - Lecture Day 4

DEFINITION OF A DIVIDEND

'Amount' includes money
and every form of property

Section 1 of the act: (corporeal or incorporeal)
received by taxpayer with

• Any amount transferred/applied monetary value - Lategan
case

• By a company that is a resident

• For the benefit/on behalf on any person in respect of any share held

in that company

• Excluded from the definition of a dividend:

• Amount that results in reduction of contributed tax cap (ctc),

• Transfer/distribution of shares (capitalisation issue)

• Buy-back of listed shares ito s 5, JSE listing requirements