Taxing a distribution of capital
| OUTCOMES OF TOPIC After studying this topic on taxing a distribution of capital, you should be able to: ✓ Understand what “contributed tax capital” mean; ✓ Calculate a company’s contributed tax capital; ✓ Understand the difference between the return of capital and a dividend; ✓ Determine how the return of capital will be taxed for a shareholder holding the share as trading stock; ✓ Determine how the return of capital will be taxed for a shareholder holding the shares as a capital in nature investment; ✓ Complete the section in the ITR14 tax return relating to contributed tax capital. |