Latest / Tax Break: South African tax for professionals
Dividend stripping and the GAAR: CGT and USPs
Does the July 2026 tax court judgment on dividend stripping and the general anti-avoidance rule (GAAR) mean these transactions can no longer be done? This episode answers a listener's question about that case and reads it against section 22B of the Income Tax Act, paragraph 43A of the Eighth Schedule and the current understatement penalty (USP) regime.
The episode starts with the facts: seven appeals combined into one, seven shareholders of a property company funded by shareholder loans rather than share capital, holding companies introduced under section 42, a dividend declared equal to the…
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