A taxpayer received shares in a listed company called Prosus as a result of him having Naspers shares. In terms of documentation received from the secretary of the company, as per below insert, there has been a base cost calculated on the shares allocated
Author: Graham Walker
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Relevant law:
Step 1: we have not unpacked the CGT aspects as we assume those aren’t under discussion. Other resources: · NASPERS guide to shareholders at point 18.2. The M shares have a nil base cost, therefore the full amount of the Prosus shares is subject to CGT.
Comment on member’s query:
SARS has given NASPERS the stepped-up base cost of the Prosus shares for you to calculate the capital gain on the acquisition. The above guidance should lead you to the correct action.