Section 8C

Which Section exempts any amount received or accrued to a taxpayer in respect of any equity instrument contemplated in section 8C?

• s10(1)(n)(d)

• s10(1)(nA)

• s10(1)(nD)

• s10(1)(nC)

A restricted equity instrument vests at the latest of:

1. when all restrictions are lifted

2. immediately before disposal unless it is exchanged for another restricted equity instrument

3. immediately after an option/convertible financial instrument terminates

4. immediately before death of the taxpayer

5. on the time the option lapses

• TRUE

• FALSE

When a debt is granted by an employer to an employee in order to buy s8C shares, the following is true:

• It is a fringe benefit

• No deduction will be allowed

• It will be a Gross Income inclusion

• No tax effect

Example 1:

The equity instruments will only vest in what year of assessment?

• 2018

• 2019

• 2022

• 2023

Example 2:

What was the effect on Trevor's taxable income for the 2022 year of assessment?

• R 250

• R 200

• R 150

• R 2000

Example 3:

The amount to be included in the employee's taxable income for Year 3 is equal to?

• R 17 000

• R 27 000

• R 0

• R 15 000