Accountants' Discussion Forum: Share Capital and CTC
Presenters : Carmen Westermeyer CA(SA) , Caryn Maitland CA(SA)
Overview
Contributed tax capital (CTC) is an important concept that must be considered when one deals with share capital and dividends.
What is the difference between share capital, stated capital and contributed tax capital, and how is the CTC of a company determined?
Our monthly discussion forum for January 2024 brings up an informative conversation that answers the above question including a basic understanding of how share buy backs work.
Join Caryn Maitland CA(SA) and Carmen Westermeyer CA(SA) as they give an analysis of the differences between IFRS, the Income Tax Act, and the Companies Act requirements when it comes to owners’ equity/ share capital.
Learning objectives and competencies developed
By attending this discussion forum, you will:
- Acquire an understanding of the meaning of “dividend” for IFRS, Income Tax Act and Companies Act purposes.
- Have an appreciation of the difference between share capital, stated capital and contributed tax capital.
- Possess knowledge of the respective legal and administrative requirements regarding capital.
- Understand some of the basic applications of contributed tax capital in tax planning.
- Acquire a basic understanding of how share buy backs work.
Content to be discussed
The following topics are under discussion for this month:
- Introduction to share capital.
Share capital vs stated capital vs contributed tax capital.
- Defining dividend under:
- IFRS.
- Income Tax Act.
- Companies Act.
- Important legal and administrative requirements.
- CTC in tax planning.
- Share buy backs.
