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Yes you must deduct employee tax and pay that to SARS!! VAT and Income Tax is 2 separate divisions!!
Winger Ltd has a total 500 ordinary shares, 100 of which are owned by ABC (Pty) Ltd. The Contributed Tax Capital allocable to the class of shares is equal to R500 000. Pursuant to a buyback, ABC (Pty) Ltd surrenders all 100 of its ordinary shares in exchange for R150 000. How much of the amount received by ABC (Pty) Ltd constitutes a dividend?
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