Page 30 - Trading Stock
P. 30
Example
On 1 March 2009, Ostrich Ltd acquired 100 equity
shares in Crocodile (Pty) Ltd for R150 000, which
was held as trading stock. On 1 March 2015, Ostrich
Ltd distributed the 100 Crocodile (Pty) Ltd shares as
a dividend in specie when the market value was
R300 000.
Calculate all the tax implications for Ostrich Ltd in
respect of the sale of the shares.
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