Page 93 - Companies & Dividend Tax

CORPORATE RULES

Background

• There are specific requirements that should be fulfilled

before these sections can apply.

• If the requirements are met, it is important to note that

the corporate rules automatically apply in absence of a
written agreement between the parties stating that the

specific section should not apply.

• However, this rule does not apply to intra-group

transactions (section 45) where trading stock is
regularly and continuously disposed of between the

parties involved.

• Thus, in a question, you have to establish if the

requirements in terms of the corporate rules have been
met.

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