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Shares / Foreign Dividends Tax on Crypto Fund Divi (TUSD)
« on: May 22, 2019, 09:19:35 am »
1) If a South African receives dividends in TUSD from a foreign Crypto Hedge Fund, what's the best course of action to obtain ZAR to pay Foreign Dividends Tax? E.g. sell TUSD for BTC on Binance (1-2% fee), deposit BTC to Luno (tx fee), sell BTC for ZAR (1% fee), deposit to bank account (deposit fee).
2) If all divi TUSD is converted to BTC, and only tax portion of BTC is converted to ZAR, and the remaining BTC is later sold for ZAR, would that constitute a CGT event?
3) And what if the divi was paid in BTC, and non-tax portion later converted to ZAR, would that incur further taxes?
4) Another question is how to declare Foreign Dividends received, given the conversion/tx fees to get the Foreign Dividends Tax amount to ZAR?
5) Also, at what point would the Revenue Service audit the original source of the funds invested in this foreign security?
What irks me is that if the Crypto Hedge Fund turns out to be a scam, then the Revenue Service got its share of profits without rendering any service or infrastructure to protect or facilitate the investment. Taking the capital loss for the tax year does not compensate nearly enough.
2) If all divi TUSD is converted to BTC, and only tax portion of BTC is converted to ZAR, and the remaining BTC is later sold for ZAR, would that constitute a CGT event?
3) And what if the divi was paid in BTC, and non-tax portion later converted to ZAR, would that incur further taxes?
4) Another question is how to declare Foreign Dividends received, given the conversion/tx fees to get the Foreign Dividends Tax amount to ZAR?
5) Also, at what point would the Revenue Service audit the original source of the funds invested in this foreign security?
What irks me is that if the Crypto Hedge Fund turns out to be a scam, then the Revenue Service got its share of profits without rendering any service or infrastructure to protect or facilitate the investment. Taking the capital loss for the tax year does not compensate nearly enough.