Hi,

I am trying to find something to send to a client to support my view that dividends are not deductible for income tax purposes (ie. you can not deduct dividends to arrive at your net profit before tax figure).

The client's bookkeeper thinks that the dividends are deductible (and deducted this when she did her provisional tax calculation), but the client and I agreed that it is not deductible. I am trying to find some literature to support this view. I have done a google search, looked on SARS' website etc. The results I get confirm that it is not deductible, but I can not find something substantial to send to the client.

Any advice?

Thanks!