Binding Private Ruling (BPR) 125 was issued by SARS on 25 October 2012.
The ruling deals with–
the capital gains tax (CGT) treatment arising from the vesting by a discretionary trust of dividend rights in its beneficiary under paragraph 80(1) of the Eighth Schedule;
whether the capital gain arising from the vesting of the dividend rights by the trust in the beneficiary will be disregarded in the hands of the beneficiary under paragraph 63 of the Eighth Schedule as the receipts and accruals of the beneficiary are exempt from tax under section 10(1)(t)(vii); and
whether the beneficiary will be the "beneficial owner” of the dividend amounts when the dividends are paid, and whether the company paying the dividend is required to withhold dividends tax from the payment of the dividend under section 64G(2)(a).
BPR 125 is valid for a period of three (3) years from 28 August 2012.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.