| Thu 15 Mar 2012, 11:06 | | INLP - Investec Bank Limited - Dividend Withholding Tax Announcement |
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JSE
INLP
INLP - Investec Bank Limited - Dividend Withholding Tax Announcement
Investec Bank Limited
Incorporated in the Republic of South Africa
Registration number 1969/004763/06
JSE share code: INLP
ISIN: ZAE123000048393
CHANGES TO SECONDARY TAX ON COMPANIES AND THE INTRODUCTION OF A DIVIDEND
WITHHOLDING TAX AND THEIR EFFECT ON THE INVESTEC BANK LIMITED NON-REDEEMABLE,
NON-CUMULATIVE, NON-PARTICIPATING PREFERENCE SHARES
Holders of Investec Bank Limited ("Investec Bank") non-redeemable, non-
cumulative, non-participating preference shares ("Investec Bank Preference
Shares") are referred to the announcement, released on the Securities Exchange
News Service of JSE Limited on 26 February 2007, dealing with the grossing up of
the Investec Bank Preference Share dividends as a result of the then proposed
amendments to the tax legislation regarding the changes to Secondary Tax on
Companies ("STC") and the introduction of a dividend withholding tax on all
dividend distributions by a company to its shareholders, as contemplated in
sections 64D to 64N of the Income Tax Act, 58 of 1962, as amended ("Income Tax
Act") ("Dividend Withholding Tax").
The impact of the change in the Income Tax Act is that STC will be abolished as
at 31 March 2012 and the Dividend Withholding Tax will be introduced for
dividends paid after 1 April 2012 at a rate of 15%, subject to certain
exemptions. As in the past, the Investec Bank, as the Issuer, will pay the semi-
annual dividends to the transfer secretaries, who distribute the dividends to
the preference shareholders through the regulated intermediaries (i.e. CSDP`s).
These entities are required to pay the dividends to the preference shareholders
after deducting the Dividend Withholding Tax, unless the shareholders have
advised the regulated intermediary that they are exempt in terms of the
provisions of the Income Tax Act. We recommend that holders of the Investec Bank
Preference Shares who may be exempt from paying Dividend Withholding Tax get in
touch with their CSDP`s / Brokers to ensure that their personal information is
updated and that they verify whether they are exempt from paying the Dividend
Withholding Tax.
The board of directors of Investec Bank has consequently resolved to amend the
rate used to calculate the dividend payable on the Investec Bank Preference
Shares on or about 02 August 2012, being the date on which the Annual General
Meeting of Investec will take place, from the current rate of 75% of the prime
rate to 83,33% of the prime rate, to the extent that Investec Bank does not have
sufficient STC credits, and subject to the passing of the required resolutions
by both the holders of Investec Bank Preference Shares and the holders of
Investec Bank Ordinary Shares.
A circular containing full detail of the amendment to the terms of the Investec
Bank Preference Shares, including, inter alia, a notice convening a Class
Meeting of Investec Bank Preference Shareholders, together with the notice of
the Annual General Meeting of Investec Bank will be posted on or about 30 June
2012.
Holders of the Investec Bank Preference Shares will not be prejudiced by the
Dividend Withholding Tax in respect of dividend number 15 for the period to 31
March 2012, which will be declared and payable after 01 April 2012, as Investec
Bank has sufficient STC credits.
London and Johannesburg
15 March 2012
Sponsor:
Investec Bank Limited
Date: 15/03/2012 11:06:48 Produced by the JSE SENS Department.
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