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One can use that method only once you have held them for longer than 3 years I presume.

Quote from: Bundu on October 01, 2013, 02:28:17 pm

"same kind and quality" - I wonder how that can be determined? 
I'm sure you won't even get two analysts to agree on that

$9.7
The expression ‘share of the same kind and of the same or equivalent quality’ refers to substantially identical shares in the same company.
Thus a shareholder who held a class A ordinary share in ABC Ltd (a listed company) that was forcibly acquired under s 311 of the Companies Act 61 of 1973, who wishes to take advantage of para 42A, must replace that share with a class A ordinary share in ABC Ltd. In the event that the particular class of share is no longer in issue, the share would have to be replaced with one bearing substantially identical rights
In other words, unless what I have highlighted is the case, it must be the same share.

thanks! that would mean that this option is of very limited value to the average share holder

Dividends and your tax return

Local dividends
Although dividends withholding tax will automatically be withheld by the dividend-paying company (unless an exemption applies), the tax obligation remains on the shareholder. Dividend withholding tax is a separate tax and does not form part of the normal income tax calculation. This unfortunately does not mean that the taxpayer can ignore the dividends he or she received in their tax return. The gross dividends receipts (pre-dividend withholding tax) must still be included as part of gross income and as a consequence be included in the tax return.   

Local dividends are however still fully exempt from normal income tax and as a consequence the amount of dividends included under gross income will then be excluded again under the exempt-income section.

For local dividends it must therefore be included in the return and the full amount excluded again; in other words it will be merely an in-out situation.

I have already completed my return and have been assessed, but certainly didn't add gross dividends to any
sections on the ITR12.
Provision was only made for 'Local Interest Income' and 'Exempt Local and Foreign Dividends'.
To which section on the ITR12 one is supposed to add gross dividends ?

If added to 'Local Interest Income', I would be fully taxed on the gross dividends at my marginal tax rate without
being able to deduct them again as they will not be deducted by showing them under 'Exempt Local and Foreign
Dividends' - they will merely be ignored as amounts considered non-taxable.
Rather confusing as no provision is made for this as far as I can see looking at my ITR12.

Rather confusing as no provision is made for this as far as I can see looking at my ITR12.

  Yes, I had the same problem...

Quote from: Orca on October 05, 2013, 08:07:45 pm

Hick. Burp. Look at the time.
Those guys doing CFD's must be hiding their gains. How can one possibly work out tax when you are doing 6 trades per day?
I find it difficult to do 4 per year.

Orca and all, request a CGT Tax certificate for the Tax Year from your broker, all your trades, gains and losses are calculated for you. My broker is Ned Priv Wealth (previous BoE) and i request a CGT certificate, they charge R 150. and i give that to my accounting firm. I do a lot of trades per year (around 100) and have no problems with tax, pay CGT on my nett gains.
 
Hope this helps

is that irrespective of how long you owned the share before taking profit?

Hi guys, all my taxes are handled by my accountants and submitted to SARS, i might be mistaken i understand as i get a CGT certificate from my broker that all my nett gains are subject to CGT. As i have other business income and supose all gains/losses are added/subtracted together.

I definetely will bring this up at our next meeting will keep you guys informed.

Come on guys, play nice

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