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Online Share Trading

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As i understand it

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THRESHOLD
Super Contributor
Not at all! The valuation of the underlying foreign stock is based on the metrics of the asset itself; not on our little tax system. Our dividend tax could move to 100% of yield for that matter and it would not impact the value of the underlying foreign share itself. Also - as our tax rate rises and chokes our economy, our currency should come under pessure. The foreign shares will obviously offer a strong hedge against this.
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THRESHOLD
Super Contributor
As we se capital gains migrate incrementally toward full recognition and given that STC ultimately exists in a 12% cheaper environment than dividend tax, it is clearly advantageous for government to move the liability into to the private sector. The leniency granted certain funds is designed to encourage investment flows into that sector. Since the bank taxes the trading and management fees on those accounts at the full tax rate, you can rest assured that the government is not losing on that deal. I fear that in the long run all of these funds will also be revised for recognition of capital gains anyway. This government needs money! It has no plan as far as growth etc. are concerned. In my opinion our tax system is tantamount to theft and/or fraud.
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THRESHOLD
Super Contributor
You have to wonder if a "Boston Tea Party" type of event is on the cards in South Africa. Do you not think that the constitutional rights of taxpayers are being violated with impunity?
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