My client has sold his Sanlam shares that were issued free on charge in January 2001. The proceeds of the sale is just over R 100 000. Computershare / Sanlam acknowledges the sale but does not issue a IT3C for the CGT. Sars says they see it on the system
Important:
This answer is based on tax law for the year ending 31 December 2001.
Answer:
Yes, the transaction must be accounted for in the individual’s return of income for the year during which the shares were disposed of. The value, at 1 October 2001, of demutualisation shares in Sanlam can be determined by using any of the four methods available for this purpose, namely, market value, time-apportionment, 20% of proceeds or weighted average.
Since these shares were listed on the JSE, the market values published by SARS on this website and in Government Gazette 23037 of 25 January 2002 must be used to determine the valuation date value for shares held on 1 October 2001 when applying the market value or weighted average method (Sanlam R8,89 per share).