Taxation of Dividends

[#1]

Is anyone aware of any changes and/or proposed changes to the taxation of Dividends?

[THRESHOLD]

PREFS to be deemed interest. Normal DIVs to be taxed in the holders hands - said tax to be retained by the payer. STC on DIVs to be s*****ped in the company's hands. CGT nature applicable to DIVs but expenses not deemed to be incurred in the production thereof? Possible implications re dividend stripping. Then there are foreign dividend declarations (largely to do with vesting of inward listings receipts which I don't intend to go into.) If you want more info - buy HUXHAM & HAUPT - NOTES ON SA INCOME TAX for a friendly experience.

[prancing_horse]

Unfortunately not all dividends are "tax fee", Dividends on geared intruments (CFDs) are classed differently and viewed more as an interest payment and therefore taxed again in the recipient's hands, which is, i think unfair, as it double taxation.In this case the R100 profit the company makes is taxed at 28% then 10% stc is levied (Sars collects R35.20)The remainder,R64.80 is distributed and I end up paying 40% to Sars, who now has collected R61.12 and I end up with R38.88.Anybody know of a better business than SARS?

[Russ]

SARS:State Administered Robbery Syndicate!

[THRESHOLD]

You've heard the advert" "SARS - helping you make South Africa great!"