Dividend cession – investigating the South African tax implications
| dc.contributor.author | Haupt, Estian | en_ZA |
| dc.contributor.author | Nel, Rudie | en_ZA |
| dc.date.accessioned | 2019-08-12T07:34:41Z | |
| dc.date.available | 2019-08-12T07:34:41Z | |
| dc.date.issued | 2019 | |
| dc.description | CITATION: Haupt, E. & Nel, R. 2019. Dividend cession – Investigating the South African tax implications. Journal of Economic and Financial Sciences, 12(1):a153, doi:10.4102/jef.v12i1.153. | |
| dc.description | The original publication is available at https://jefjournal.org.za | |
| dc.description | Publication of this article was funded by the Stellenbosch University Open Access Fund | |
| dc.description.abstract | Orientation: The South African tax legislation in respect of dividend cession. Research purpose: The objective of this article was to investigate the tax implications of a dividend cession for the cedent, cessionary and declaring company involved in the cession in order to provide guidance regarding the tax implications arising from such cession. Motivation for the study: The introduction of specific anti-avoidance provisions and amendments to tax legislation complicated the tax treatment of a dividend cession. Current literature and guidance contains a brief reference to the capital gains tax implications, while other guides deal exclusively with the dividends tax implications. Based on the lack of definitive guidance of other taxes resulting from a dividend cession, this investigation is considered necessary. Research approach/design and method: This study involved an interpretative analysis of the tax legislation and incorporates other literature on the research objective to describe the tax implications as a result of dividend cession. The mode of inquiry for this study is qualitative in nature and follows a doctrinal research method. Main findings: Findings suggest that although the classification of a dividend cession could be a usufruct (a real right), the practical tax implications with reference to dividends could not have been the intention. The submission is therefore that the tax implications should be as a personal right. Furthermore, the introduction of specific anti-avoidance provisions resulted in an instance of possible double taxation which was noted, which is submitted as a possible unintended consequence as a result of legislation amendments. Practical/managerial implications: The practical value of the article lies in the guidance in respect of the tax implications which taxpayers could consider in transactions pertaining to dividend cession. Contribution/value-add: Instance of double taxation documented and submitted as possible unintended consequence which could inform further debate on the topic. | en_ZA |
| dc.description.uri | https://jefjournal.org.za | |
| dc.description.version | Publisher's version | |
| dc.format.extent | 10 pages | |
| dc.identifier.citation | Haupt, E. & Nel, R. 2019. Dividend cession – Investigating the South African tax implications. Journal of Economic and Financial Sciences, 12(1):a153, doi:10.4102/jef.v12i1.153 | |
| dc.identifier.issn | 2312-2803 (online) | |
| dc.identifier.other | doi:10.4102/jef.v12i1.153 | |
| dc.identifier.uri | http://hdl.handle.net/10019.1/106348 | |
| dc.language.iso | en_ZA | en_ZA |
| dc.publisher | AOSIS | |
| dc.rights.holder | Authors retain copyright | |
| dc.subject | Dividends -- Taxation -- South Africa | en_ZA |
| dc.title | Dividend cession – investigating the South African tax implications | en_ZA |
| dc.type | Article | en_ZA |