|
APK APKP
APK
APK - Astrapak - Proposed taxation amendments and the effect thereof on the
cumulative non redeemable preference shares issued by Astrapak
Astrapak Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/009169/06)
Share Code: APK & APKP
ISIN: ZAE000030938 & ZAE000087201
("Astrapak" or "the Company")
PROPOSED TAXATION AMENDMENTS AND THE EFFECT THEREOF ON THE CUMULATIVE NON
REDEEMABLE PREFERENCE SHARES ISSUED BY ASTRAPAK
In his budget speech on 21 February 2007, the Honourable Minister of Finance
("the Minister") announced that Secondary Tax on Companies ("STC") will be
replaced by a `dividend tax` on 01 October 2007 and will be applied in two
phases. Currently dividends attract STC which is payable by the company
distributing the dividend.
In Phase 1, this dividend tax will be levied upon the company paying the
dividend and will be levied at a rate of 10%. In Phase 2, which will be
completed in 2008, the dividend tax will be levied upon shareholders. This
conversion from company tax to shareholders tax is dependent upon the
renegotiation of several international tax treaties. The dividend tax will
apply to all distributions regardless of profits. The legal liability for this
tax will also be moved from the company paying the dividend to the shareholder
receiving it.
During phase 1, as per the Minister`s budget speech, there will be no additional
taxation in the hands of the preference shareholders. Phase 2 may result in an
additional cost for the preference shareholders and an equivalent benefit for
Astrapak.
The preference shareholders are however advised that to the extent that any
benefit is received by Astrapak as a result of the proposed amendments in
respect of phase 1, this benefit will be for Astrapak linked unitholders as
there is no additional taxation in hands of the preference shareholders.
Phase 2 in 2008, may result in an additional cost for the preference
shareholders. Should Phase 2 result in a benefit for Astrapak as a result of
the abolition of STC, Astrapak will endeavour to increase the dividend rate on
its preference shares to compensate preference shareholders for the resultant
negative impact in their hands. This increase will however be subject to linked
unitholder and preference shareholder approval as Astrapak`s Articles of
Association would have to be amended to accommodate such change.
The preference shareholders are accordingly advised that until such time as the
legislation is promulgated and shareholder approvals are obtained, it is not
possible to determine exactly what the impact will be on the cumulative non-
redeemable preference shares issued by Astrapak.
Once the legislation has been promulgated, Astrapak intends requesting the
necessary approval from its linked unitholders and will keep preference
shareholders informed of any developments in this regard.
Sandton
7 March 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07/03/2007 10:45:23 Produced by the JSE SENS Department.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
