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October 19, 2005

Dividends: paying for BEE

A week or so ago a reader responded with scorn to my inference that the dramatic rise in Government’s dividend related tax revenue is due to better economic times...



His argument is that much of the R5,2bn revenue from secondary tax on companies (STC) that Sars reported for the five months to August, is thanks to the way corporates have chosen to structure their black economic empowerment (BEE) transactions: the bigger the dividend earnings stream attributable to the empowerment shareholders, the greater the likelihood that the deal will survive.


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Posted by bernievn at October 19, 2005 8:44 PM