Page 41 - Companies & Dividend Tax

DIVIDENDS

Definition of dividend and Contributed Tax

Capital (“CTC”)

• The terms, “dividend”, “company”, “Contributed Tax Capital”

(CTC), “foreign company” and “foreign dividend”, are
defined in section 1. The definition of CTC is purely a tax

concept and you will not find any reference to it in your
Companies Act.

• Definitions of: “beneficial owner”, “dividend” (for Dividends
Tax purposes),” and “regulated intermediary“, are provided

in section 64D.

• The most important definitions relating to dividends are CTC
and dividend. Although “dividend” is defined in section 1,

the definition is extended in section 64D for purposes of the
application of Dividends Tax. We will start with the

definition of CTC before discussing the dividend definition,
because the dividend definition excludes the reduction of

CTC from a dividend as defined.

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