VituVingiSana wrote:What is not clear from the article is whether the tax is on the 'market value' [& which figure/value is used?] or on the Par Value.
If it is on the Par Value, then it is negligible but if on the Market Value then crazy high!
Also - how will URA collect the tax?
The hight court ruled that 30% of the tax should be paid immediately pending final decison by the same court.
The witholding tax is 10% on the face value of the shares and while the shareholders are liable to pay, the collection point is at the Bank.
The bank thus wrote to shareholders asking them to deposit 30% of the assessed tax in an escrow account pending the final court decision.
The bank also advised that payment of the WHT 30% deposit would enable them to issue and credit the bonus shares to CDS accounts. I suppose, the CDS share may not be credited to accounts whose shareholders have not paid.