Section 86A: Benefit to shareholder
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
86A. Benefit to shareholder
Where a benefit of any nature, whether in money or money’s worth, other
than payment of dividend, is made by a company to any shareholder or a
relative of the shareholder, the value of that benefit, to the extent that it
exceeds the payment, if any, made therefor, shall be deemed to be income
referred to in section (10) (1) (g) and received by the shareholder or the
relative of the shareholder, as the case may be.
[S. 86A inserted by s. 11 (h) of Act 23 of 2001 w.e.f. the income year commencing on 1
July 2001; amended by s. 18 (z) of Act 15 of 2006 w.e.f. 1 July 2006; s. 8 (t) of Act 37
of 2011 w.e.f. 15 December 2011.]
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Questions this section answers
- If my company gives me a benefit as a shareholder other than a dividend, is that benefit taxed as my income?