Page 82 - Companies & Dividend Tax
P. 82
Acquisition and Disposal of Shares
Share Dealers
• A share dealer can also hold shares as capital assets if
the intention is not to trade with the shares but instead
to hold them in order to earn dividend income.
• However, great care should be exercised and proper
records maintained to defend the split between
investment and speculation.
• The onus of proof in terms of section 102
(Administration Act) rests on the taxpayer to prove that
he/she had investment in mind when acquiring the
shares, during the holding period and when the shares
are disposed of.
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