n Without Prejudice - The saga of exempt dividends : tax
|Article Title||The saga of exempt dividends : tax|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Affiliations||1 Edward Nathan Sonnenbergs|
|Publication Date||Apr 2012|
|Pages||25 - 26|
S8E of the Income Tax Act introduced anti-avoidance provisions relating to, inter alia, preference share financing arrangements. This section operates to deem dividends received by or accrued to the holder as interest in the hands of the holder. The application of s8E results in the shareholder being subject to tax on the interest. The distribution is, however, still treated as a dividend for the issuer.
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